In internet banking, you are accessing your account and information, making payments and reconciling statements using your computer rather than paper or the phone. Internet banking works well for just about anyone. If you have dozens of bills to pay every month, you will probably benefit from online banking, which will save time and money.
Internet banking is far easier and more affordable than traditional banking. If you already spend a good deal of time online, you will find internet banking easy to do and a life-saver when it comes to reconciling your monthly statements.
Here are a few more benefits consumers enjoy when they use online banking:-
Save time: – You don’t have to waste time going to your branch office or to an ATM to check your balance or payments. You don’t have to wait on the phone for a voice message system.
Click to pay bills: – You can quickly and easily pay all your bills. Most banks will allow you to set up automatic withdrawals for recurring bills, and shoot an email reminder to your inbox when a bill has been paid.
It’s free: – Most online services don’t cost anything.
Perfect coordination: – You can coordinate your financial software with your online banking service. Many banks update information in your check register.
Easy operations: – You don’t have to be internet savvy to use online banking. Most programmes are self explanatory. All you need is a login ID and a password. Most programmes will take you step through the entire process.
Take care: – convenience is an important advantage of online-banking. You have access to money always, irrespective of where you are. Online bank sites generally execute and confirm transactions at the same rate or faster than the ATM. They offer sophisticated tools, including account aggregation, stock quotes and rate alerts to help you manage all your assets more effectively.
Online Security: – Online banking poses the danger of people hacking into the account and illegally transferring money to their account in a different bank. This discourages many customers from using the online facility. Internet banking fraud is a form of identity theft, using techniques such as publishing. The security measures employed by most banks are never 100 per cent safe, but in reality online fraud is rare. In fact, conventional banking practices may be more prone to abuse than online banking. Credit card fraud, signature forgery and identity theft are far more widespread offline crimes than hacking. Online banking can be risky if users are careless, gullible or computer-illiterate. An increasingly popular criminal practice to gain access to a user’s finances is phishing, where the user is some way persuaded to hand over their password to the fraudster.
A multi – layered security system, comprising firewalls, filtering routers, encryption and digital certification, ensures that your account information is protected from unauthorized access. Firewalls and filtering routers ensure that your account information is protected from unauthorized access. Firewalls and filtering routers ensure that only the legitimate internet users are allowed access to the system. Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the infinity system is protected. Digital certification procedures provide the assurance that the data you receive is from the infinity system.
Secured Socket Layer (SSL) ensures server authentication and use of client side certificates issued by the banks using a certificate server. Public Key Infrastructure (PKI) is the most favored technology for secure internet banking services. Safeguards also involve the use of minimum of 128-bit SSL for securing browser to web server communications and, in addition, encryption of sensitive data like passwords in transit within the enterprise itself. The application server should be isolated from the email server. Banks should use the proxy server type of firewall so that there is no direct connection between the internet and the bank’s system.