The Internet has entered our lives long ago. Today we can stat at home and order food, pay for utilities, book tickets for trains and planes. Even banks offer us assistance at a distance in the form of online banking. So what is this service? What features does it provide and why is it convenient to use?
What is online banking?
In simple words, online banking is an accountant who does not eat or sleep but constantly works. You can contact him at any time of the day: find out about the current balance, give a command to pay for the goods (service).
You can make almost any financial transaction without leaving your own home or place of work. To execute them, you just need to go into your personal account and perform the necessary action there.
You don’t even need to leave home or go away from work. It is enough to use a mobile phone or computer.
How does it work?
This system allows you to conduct financial transactions from your bank account online. To obtain access, you need to open a bank account, activate the service at the bank (get a username and password), access the service from a mobile phone or computer.
Most financial institutions do not charge for the use of this service. After all its main task is to reduce the costs of the bank itself. Internet banking aims to attract new customers and increase their loyalty. Communication with the bank is carried out in an interactive form.
What opportunities does online banking provide?
- Track transactions on your accounts. Without an ATM, you can find out how much money you have in your account. But, of course, the service is not limited to this. You can look at the data on all your deposits tied to the card, and also find out what operations were performed during the specified period: purchases, payroll, transfers, withdrawals and everything else;
- Transfer funds. There are plenty of opportunities: transfer money between your accounts, to another card, to the card of another user of any bank. But you can transfer funds not only to cards, electronic wallets are also at your disposal;
- Pay for goods and services. Buying clothes, cashless currency, an insurance policy, electronics (even in foreign online stores) – all this can be done from home without leaving a comfortable sofa if you have activated online banking. One of the most sought-after opportunities was payment of bills: for electricity, mobile phone, telephone, Internet, kindergarten and a dozen more services. Moreover, you can create a template for regular operations and pay for it so that you do not enter all the details every month, or even activate the Auto Payment service so that bills are paid automatically;
- Open and close deposits. You can also replenish deposits, track interest growth, withdraw part of the amount (if permitted by agreement). As a rule, online services offer to study the types of deposits operating in the bank, and literally open your own in a minute. Furthermore – you can replenish deposits automatically using special services. Indicate the write-off account and the crediting account, the date of replenishment and the amount (both fixed and a percentage of income or expenses), and the money is “accumulated” practically without your participation;
- Repay loans. This applies primarily to classic loans (including mortgages) that you took in cash – the bank will show the date and amount of the next payment, and you can make money via the Internet. Good news for borrowers: some banks allow you to make payments that are larger than specified in the contract. Many users do not miss the chance to “throw” money into the account, reducing the loan repayment period and interest. Earlier it was necessary to visit the office for such repayment, now a special application can be issued through the online bank. Also, online banking allows you to work with a credit card: you can access full information on it, from the date of issue to the limit. You can pay off your debts here;
- Work with cards. Many banks offer virtual cards, they can safely pay for purchases on the Internet. The case is not limited to this service only. Internet banking allows you to order a plastic card, change the account to which the card is attached, block the card if you suddenly lose it.
Not all opportunities are presented in all banks, some offer only information support, that is, the user can only find out the status of the account and see all the operations that are performed, others allow you to manage accounts, make payments. And the most advanced option includes financial management: you can make transfers, work with loans, etc.
The potential of Internet banking is not exhausted. Online banks are not going to stop and plan to expand their functionality in the future and offer users new services that make their life easier. First Partners Bank analyzed the capabilities of online banking and singled out its advantages.
Benefits of Internet Banking
The versatility of this service makes it publicly available. It can be used by both a person living on unemployment benefits and the director of a large corporation. It allows you to increase the efficiency and effectiveness of the management of funds in the bank account.
- Convenience. You can forget about urgent chores and paperwork. All settlements are carried out in real time. In this case, the stages of processing payment documents can be tracked from your computer or phone;
- Simplicity. To connect the service, you only need to open a bank account, conclude an agreement and create a digital certificate. You get the opportunity to make payments, regardless of whether the counterparty uses online banking or not;
- Data entry correctness control. You may not be afraid of errors when filling out. After all, the system carefully controls the correctness of entering all the data. It indicates possible inaccuracies and requires the client to confirm the correctness of their input;
- Security. All information is securely hidden from unauthorized access. This is ensured by encryption using the SSL protocol. The parties, in turn, confirm the operations with the help of electronic digital signatures. An identification system ensures that they are real;
- Documentary support. The stages of virtual document management can be traced using reports on transactions, statements of accounts, receipts. All electronic documents are legally binding. They are certified with the same signatures and seals as paper;
- Saving. Automation of financial transactions reduces maintenance costs, so banks reduce tariffs and commission payments. You can take advantage of preferential conditions for making payments, opening deposits, obtaining loans and more.
Disadvantages of Internet Banking
- Reduced protection. If we compare the protection of online banking with the “Client-Bank” system, then its level is slightly reduced. The same applies to the documentation of the movement of funds. Although, according to experts, the SSL technology “scares off” intruders, thereby guaranteeing almost the same protection;
- High cryptocurrency investments. To launch one Internet banking system that allows you to perform operations with cryptocurrencies, you will need from 1 to 5 million US dollars. This is beneficial only for wealthy clients who are guided in operations with this type of currency.
Online banking is a reliable and convenient tool for managing a bank account. Test this service yourself and you will understand that it significantly saves your time and money on various financial transactions.
How to connect to online banking?
The online service is connected in the bank branch according to approximately the same algorithm:
- The client must contact the office;
- Study the conditions for the provision of Internet banking services;
- Conclude a service agreement and receive a login and one-time password to enter your personal account. Then the password changes to permanent;
- Register on the bank’s website and proceed with the necessary operations.
It is worth noting that banks often encourage customers to use remote services. For this, customers receive all kinds of bonuses and benefits, for example, increased deposit rates when placing them in your account. All this attracts new customers and encourages old customers to continue to cooperate with the bank. An important factor for using Internet banking is reduced fees. They are lower than those used in the departments.
Thus, the online banking service is constantly being improved, the opportunities are expanding every day. Online banking is really convenient, because it saves the client’s money and efforts, and also gives time for other things.