The Benefits Of Internet Banking

I can't believe I once survived without internet banking. I even remember just a few years ago, actually having to deposit my weekly pay check in person! Now I get paid automatically, and can turn to my internet banking facility to pay any bills, pay off my credit card, my mortgage or anything else I need. It's a rare day when I have to visit the bank in person!

One of the best things about technology or the worst, depending on your point of view) is the ease with which traditional banking transactions can be conducted. Internet banking, which appeared on the scene as a new and untrustworthy banking option has quickly become the most accepted way of banking online. In fact, it would not be an exaggeration to say that most Americans today use internet banking as opposed to traditional banking. And some of the bigger banks no longer offer traditional banking services, or charge those who continue to bank traditionally.

It is quite easy to see why Internet banking has caught on so quickly. In the knowledge economy that we live in, almost all transactions are web enabled. When manufacturers, retailers and even resellers offer their goods and services online, and when buyers are able to browse through, understand and select products online, internet banking became the next logical step. Most retailers prefer customers who use internet banking options. In fact, even computer manufacturers like Dell Computers, offers a range of discounts to customers who order and purchase computers online using Internet banking.

Even from the perspective of an individual, Internet banking makes a whole lot of sense. First and foremost, there is no need to take the time off and drive to your bank branch and wait in long, unending queues to be served. You can do all of your banking transactions online, with greater speed, convenience and efficiency. Speed because you can use internet banking to be served immediately, without having to contend with people before you. Convenience, because Internet banking allows you to transact at your convenience, from the confines of your home or office, and efficiency because there are electronic records of all transactions and the chances of errors due to human error is minimal. You no longer need to visit each individual post office, telephone company or grocer to pay your bills. You can do it online with Internet banking, without having to fill out and mail checks.

But Internet banking also has its flip side. There are, and will continue to be, security concerns about banking over the Internet. Of course most banks have ensured that their Internet Banking services are offered on secure, encrypted sites. But scamsters always ensure that they come up with more and more innovative ways in which they can try to break into your Internet banking account. Last year a friend of mine discovered that $5000 had been removed from their bank account by an overseas company, who had somehow managed to hack into their savings account. It's scary! Fortunately, the bank refunded their money without a problem and the error was rectified, but it reminded me just how insecure we sometimes are with regards to our money.

Phishing is just another way online banking can be made insecure, where miscreants try to steal your Internet banking username and password, and then log in to your account to make withdrawals. But then again, the error in this case too is that of the trusting human nature, rather than Internet Banking technology. In any case, all banks that offer Internet banking (and there are practically none that don’t!) provide guidelines on internet banking safety and common scams that you should steer clear of. If you get an email that says it's from your bank, and tells you to log in using a link from the email then DON'T! Log into your bank account first, and then see if there's a problem with your account. It's the only safe way!

When you weigh up the positive aspects of Internet banking, you will find that it saves you time, money and removes most of the pain points related to traditional or conventional banking. And in the world that we live in, Internet banking is no longer a luxury. It is a necessary way to transact and do business.