What Are The Advantages And Disadvantages Of Internet Banking?

Reliability: Jun and CAI (2009) identified one of the very important service quality dimensions of E-banking service quality is reliability. The online banking environment has grown tremendously over the past several years and will continue to grow as financial institutions continue to strive to allow customers to complete money transfers, pay bills, and access critical information online. During this same time, online banking has been plagued by Internet criminals and fraudsters attempting to steal customer information. Phishing, pharming, and other types of attacks have become well known and are widely used as a means for fraudsters to obtain information from customers and access online banking accounts. As a result, authenticating customers logging onto their online banking service has become a crucial concern of financial institutions (Gregory D. Williamson, 2006)

In this the user has a account in any bank and registers for online bill pay service and pays all his bills using banks websites. The user is given user id and password by which he logins into bank's payment website and then he will be asked to type his transaction password. After which bank will deduct amount from his account and pay to seller with help of payment gateways. Payment gateways act as bridge between user's bank and seller. Eg.: CC Avenue

One then clicks on the Login Online Banking button on the page’s top right hand corner. One then enters their Username and password they had provided when signing up. At this stage one checks their login credentials to ensure they are correct after which one clicks on the purple login button. This takes one into their account from where one can perform transactions or even apply for a loan.

Finally, and probably the most obvious, is the issue of trust you have in your online banking facility. How secure is the transmission of my private information? How can I be sure the transaction went through? Who else will have access to my information? This trust issue and skepticism of security is by far the biggest concern of potential online banking consumers. The Ponemon Institute is dedicated to studying ethical information management practices and research. The institute conducted a survey this year entitled Privacy Trust Survey for Online Banking with 2,300 participants. In the institute's research, it is found that eighty two percent of banking consumers say identity theft is their main concern. The next two biggest concerns are telemarketing abuse and unauthorized

Online bank: Since this process is done by the internet, then various of threats can be caused.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

Internet banking renders location and time irrelevant, and empowers customers with greater control of their accounts. Banks achieve cost and efficiency gains in a large number of operational areas. This paper addresses the aspects of reliability and accessibility from a banking enterprise point of view and puts forth present day solutions to problems involving these issues. An Indian perspective of Internet banking is also looked at in order to gaining a better perspective regarding the situation.

Online banking services have grown from simply allowing customers to check balances, to trading assets. Today, banks like ING Direct are functioning entirely online, with no brick and mortar building. With the costs saved by requiring fewer employees and the lack of facility expenses, these virtual banks can often offer higher interest rates than their traditional counterparts. Internet banking gives you the power to control your finances completely. You are no longer tied down to managing your money during the hours the bank is open. If you want to transfer a balance after business hours, you can! If you have access to the Internet and have a number of recurring monthly bills, then you should use Internet banking to make your life easier.

Many people are starting to elect not to receive hard copy statements from any of the businesses they conduct business with. Many businesses offer discounts to those who opt in to receive their statements online. This saves the companies money and is more convenient for the customer. This can also pose a security risk for the customer. Banking online requires a username and a password and many times those are too easy to guess or steal from a phishing

Identity Theft: You couldn't feel secure making financing transactions online. Anyone could see you whenever you make a financial transaction and gain access to your online bank accounts, which will bleed dry very quickly.

Banks provide three types of services through online banking. (a) Information on different services and products offered by bank to their customers and for general public. (b) In this service, customers can apply for new services and products provided by bank, account balance queries, but no fund transections. (c) In this service of banking, customer can transfer funds, make bill payments, purchase or sale securities by bank, can subscribe to other products by bank.

I also am assuming that most internet users regularly check their banks policies on how to protect themselves.

The use, acceptance, adoption and application of internet technology to businesses to boast their performances are not something new. Saffu et al., (2008), states that there has been a significant increase in the use and application of e-commerce in businesses in the past decade. E-commerce has benefits such as reduction in costs, increased business opportunities, reduced lead time and providing more personalized service to the customers (Turban et al., 2008). Internet banking or e-banking is one of the many tools of e-commerce adopted by the banking industry. Tools of information technology such as internet banking have significantly improved the quality of services offered by the banking

Forbes Magazine offers a recommendation for using a “dedicated computer for banking” (Beesley, 2013, para. 9). Individual personal uses of the internet are recommended to be abstained from on this computer. Online activity that should be avoided include “social media, email, and web-surfing which can open up the machine to vulnerabilities” (Beesley, 2013, para. 9).

Online payment processing services perform transactions at a much greater speed than manual processing. As well as ensuring error-free computations and faster processing time. Which means