Online banking refers to banking products and services offered by financial institutions over the internet. It remains one of the economic and more prospective delivery channels across the globe. According to Sivasubramanian and Arunachalam, online banking is where a customer can access their bank account or transactions via the internet, using mobile phones, personal computers, and web-browser.
In this busy world, when people don’t have much time, even for their personal work, online banking appears as a privilege. This all-new concept was introduced in the early 80s, and many have started availing the facilities since then. With the options of online or internet banking, one does not have to wait in a long crew at the bank or shopping center. It offers the facility to make money transfer from one account to the other, view account statement, also paying phone or electricity bills online. One of the key advantages of internet banking is that it is fast and available in any part of the world, and at any time needed.
In 2002, Tantichattanon and Ongkasuwan defined online banking as a service that allows customers to perform and access financial transactions on their bank accounts from their computers. In 1996, Burr described internet banking as an electronic connection between the bank and customer in order to manage, prepare, and control financial transactions. Chou has identified five basic services connected with online banking - paying bills, view transaction history and account balances, request credit card advances, transfer funds, and ordering checks for fast services that are facilitated by foreign and domestic banks.
Therefore, internet banking is also considered as an innovation on behalf of banks and delivery channels. It has enriched the relationship between merchants and clients by allowing customers to pay their dues online. It is also an example of a globalized world where there are no hurdles. According to research, 83 percent of global banking clients are satisfied with internet banking services.
Internet Banking is Standard Practice
It has become so universal that customers expect bank accounts to include free online banking, and many banks only operate through the internet, effectively reducing overhead costs to provide more competitive rates on savings accounts as well as higher profit margins.
Internet Banking Security
Currently, online banking has become one of the significant ways to manage funds. Banks confirm online banking security for customers with the use of encrypted technology, incorporating safety features, as well as warning them to avoid threats, including identity theft.
Ways to Secure Online Transactions
To practice safe online banking, customers should take these practical measures, which are as follows-
- Try to make sure that the bank is FDIC-insured
- Be aware of fraudulent websites
- Research a bank before opening a free or paid online banking account
- Keep your online banking data secure
- You must know your online banking rights
Future of Internet Banking
Despite the slow progress in the early part of the history of online banking, it has proved its potential. The services and features of internet banking have significantly advanced - from the need of paying bills to transfer funds and deposit checks, with just a click of a mouse or one mobile phone. As technology continues to develop, online banking is expected to become more comfortable, flexible, and ingrained in our average lifestyle.