On-line Banking

Testing with online banking started during the early 1980s, but it wasn't until 6^th October 1995, that Presidential Savings Bank first offered customers an online alternative to the traditional banking experience. 

With online banking, customers can view their current and available balances, view transactions, pay your bills, transfer money to external accounts, transfer money between your banking and savings accounts, transfer money overseas, request a new overdraft and request an increased limit for an existing overdraft.

You can also use on-line banking for your credit cards. Customers can,

View their balance and any recent transactions and transfer balances from other credit or store cards.

Some banks have higher security than others.  Banks that have started to use online banking more have created card reading devices that give the customer a special login code for them to enter into their website in order for the customer to access their account online.  This code is different every time so it is less likely that they can be a victim of fraud and hacking.

There are also online only banks such as:

• First Direct
• Egg
• ING Direct
• RaboDirect

These are banks that are only online and do not have any branches for customers to go to.  Everything that the customer needs is on the banks website and they have phone lines for people to call if they have any problems or need help with complicated banking.

Online Banking has advantages and disadvantages for different groups of people.

These groups are the customer, the bank and the employees.

Advantages for customers

• Convenient because it is quick and easy when you don’t want to go out.
• No need to travel because you can look at your bank from the comfort of your own home.
• Open 24 hours a day, 7 days a week.
• No queuing because you are online instead of in a building waiting to be served.
• The customer can find details quickly because the easy to use websites keep the information you need.

Disadvantages for customers

• There can be some security risks such as hackers.
• Possibility of errors on the systems or by people that could enter the wrong information.
• The Digital Divide.  Some people do not trust and do not like using technology for something so personal and important.

Advantages for the bank

• They have fewer employees to pay which means they have less money going out.
• Wider customer base because some people might join a bank for their appealing online alternatives.
• The bank doesn't need as many buildings because people are doing more of their banking on-line.

Disadvantages for the bank

• If something goes wrong with security, then the bank is the one in trouble because their reputation is at risk.
• It costs the bank lots of money in order to keep their customers safe.
• Some customers might not trust the online banking because of hackers and the digital divide which means fewer customers for the bank.

Advantages for employees

• New job opportunities for website developers and designers.

Disadvantages for employees

• Some people might lose jobs if the banking is being used more than the branches.

In my opinion, online banking is a great and very useful idea.  It lets people do their banking anywhere and at any time.  There are some risks involved in online banking, such as hackers and system errors, but the advantages outweigh the disadvantages and people would rather take the small risk and use the useful online alternative to going into a branch.