What is Banking?
Banking is the word that comes from the early Greek where it originates from the word BANCA in Old Italian which means a desk as the early exchange of money was done over a desk covered by the green table cloth. Banks have always played very significant role in our lives.
There are two major functions of any bank; Borrowing and lending. Bank borrows the money from the people who have it in the surplus and invest that money in some productive purpose, whereas bank lends the money to the people who need it. There are different kind of loans that bank grants to their people for instance car loan, home financing, and student loan.
Banking evolved enormously over the period of time. Banking system introduced numerous other services considering the convenience and need of their customers. Letter of credit helps the customers in trade and commerce; on the other hand, online banking, debit cards, credit cards and phone banking have minimized the banking transactions and have made things easier and convenient for people.
In short, the banking sector is progressing leaps and bounds by providing ease and access to its customers.
What is Internet Banking?
The banking which is carried out VIA the "internet" is called internet banking. It is a remarkable achievement in the banking area. It has a wide range of benefits both for the banks and the consumers.
Advantages of Internet Banking
- It provides banking facility around the clock.7 days a week 24 hours a day without keeping the branches open.
- Consumers need NOT go to the bank and stand in long queues and wait for their turn to complete the transaction.
- Internet banking has simplified the opening and closing of a bank account without much paperwork.
- Internet banking is cost effective and efficient.
- Due to lower costs internet banking increases the profit margin of the commercial banks.
- You can track recent account activity.
- Authorize electronic bill payments.
- Check account balances 7 days a week 24 hours a day.
- Balance a Cheque Book.
- Transfer money accounts to account.
- Request copies of past statements and processed checks.
- Issue stop payment requests.
- Apply for a car loan, home loan, student loan and personal loans etc.
Disadvantages of Internet Banking
The top most disadvantage of internet banking is related to security of the accounts. In order to carry out safe and secure transactions, the banks, as well as consumers, must observe high-class security. All the commercial banks do adopt fool proof security measures to smoothly run internet banking. The account holder must also keep his PIN, user name and pass word safe and secure. Otherwise, his account is an easy prey for the hackers.