Updated May 20, 2023
E-Banking
E-banking is a system that provides customers with various online banking services by utilizing the Internet and telecommunications networks. This method allows customers to access their bank accounts and conduct multiple financial transactions. It is also known as Internet banking or online banking. It’s easy to see why E-banking is becoming more popular. It may only be suitable for some people. The absence of face-to-face interaction and the complexity of some technology can be a disadvantage. This article will discuss the advantages and disadvantages of E-Banking.
Top 5 Advantages of E-Banking
Some of the most notable advantages of online banking are as follows:
1. Ease
With e-banking, you can access these banking facilities anywhere and anytime. You can make all banking decisions without waiting in lines with a few clicks. It also resolves issues related to fraudulent transactions.
2. Easy to Track and Check Balances
E-Banking enables you to keep track of your finances at any given point in time. You can check the balance in India or abroad with just a few clicks. Moreover, e-banking lets you get a statement of your account, which keeps you informed about the money you have all the time.
3. Reduces the Additional Charges
With the help of e-banking, you can reduce your banking significantly. Online banks do not charge you for transferring money. Further, you do not have to pay the charges related to its upkeep. This also increases your savings.
4. Easy to Transfer Funds
With the help of e-banking, you can quickly transfer funds without going to the bank. However, you can transfer the fund at any time and any place. E-Banking enables you to make RTGS, NEFT, and IMPS. Moreover, you can make domestic and international transactions with a few clicks.
5. Access to a Plethora of Services from the Comfort of your Home
E-banking allows you to check and print balance inquiries, transfer money, make purchases online, pay utility bills online, view transaction histories, and more. Thus, E-banking will enable customers to apply for personal and home loans, mortgages, equity, and educational loans.
Top 5 Disadvantages of E-Banking
As mentioned earlier, there are several advantages and disadvantages of E-Banking. Let’s have a look at the penalties of E-Banking:
1. Disruptions in Technology-related Services
E-Banking is only possible with a proper internet connection, and a good internet connection is mandatory to access the facilities of e-banking. Moreover, if there are constant disruptions due to power cuts and the internet speed is low, it becomes tough to use e-banking. Furthermore, due to the scheduled maintenance, it can be challenging to access the service.
2. Security Breaches
Despite the precautions taken by the banks, e-banking transactions are still vulnerable to breaches. Moreover, With the advancement of technology, hackers have devised ways to break through the encryption used to protect user data from being compromised. Compromised, and this poses a severe threat.
3. Difficulties for Beginners
Only some people are familiar with the technology used in e-banking. Several people need help using or learning this new skill, making it more difficult. Due to the unavailability of proper knowledge and training, individuals are forced to go to the bank.
4. Lack of Personal Security Concern
Online banking needs a personal touch. A personal, in-person relationship with the bank is beneficial when availing of loans or looking for specific changes. Furthermore, if the bank knows you, they will happily update you on the best investment opportunities.
5. Limited Services
Although online banking provides many services, more is needed to replace the physical process. Specific banking processes require you to visit the bank physically. This usually happens when you apply for a loan. If you are taking a loan, you need to sign the document at the bank. Moreover, if you are withdrawing a considerable sum from your account, you also need to visit the bank to verify that the withdrawal is actually yours.
Conclusion
However, Every coin has two sides. Similarly, every service has its pros and cons, and knowing about both is essential to make a better decision. So, before you consider using e-banking, you must consider the advantages and disadvantages of e-banking.
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