Online banking in India has had an enormous boost post the demonetization period, and there has been no looking back for it ever since. If you’re too busy or tired receiving and sending paper checks, continuously making trips to the bank to make a deposit or withdraw cash, working strictly around the bank’s hours of operation to check your balance, etc., then you should give online banking a shot!
As mentioned above, banking is now no more limited in strict banking hours or even visiting the bank to get something done! You can do all these tasks and much more with the help of ‘Internet banking’. Internet banking has become so popular that the idea of ever having to go back to the offline days is wince-inducing, because these days, we hardly have an idea of how we ever got along without the internet!
The Importance of Online Banking in Today’s Time
The primary objective of banks to switch to internet banking in the modern tech-advanced world is not only to reduce operational costs but also to meet the ever-growing competition. There are various reasons for the growth of net banking, but the most critical factor is that it diminishes the need of standing in long lines & operating with the banks in a traditional way that would lead to high wastage of time and provide inconvenience and accessibility issues.
The success of early efforts of digitisation of banks led many banks to expand their internet presence with improved websites. These websites can perform tasks like open new accounts, download forms and even process loan applications, sometimes, in a matter of minutes!
For example, the latest 811 Savings Account by Kotak Mahindra Bank is based entirely on a virtual platform, and you can operate it from your mobile phone. It is an agile, easy to use and accessible way of banking.
The most significant boon of these "virtual" banks is that it has passed savings in labour & overhead costs to their customers by offering lower loan costs, higher interest rates on deposit accounts, and even reduced service fees.
Why You Should Opt for Online Banking: PROS
Here are some benefits of internet banking that you should know about:
Ease of Use
Compared to traditional bank accounts, internet banking is easier to use. The online bank is available 24x7 and 365 days. It is time-saving and doesn’t depend on geographical places. Internet banking is very user-friendly. The online transactions cause less hassle than the direct transactions happening offline.
The transfer of funds is super fast & safe transfer of funds is ensured. You can even pay your bills anytime with your virtual card & also generate an automatic receipt. Internet banking gives better interest through online banking. Apart from this, many offers are given out by banks to entice the customers to online banking. The payment cards help in online purchases and transactions efficiently. Internet banking acts as a medium for several other product/ services which includes investment options.
It is quite convenient and comfortable to pay your bill through your mobile wallets. This method is very suitable for customers as you can access your bank at any time and anywhere. This gives you a faster, easier, more efficient & effective experience when compared to direct banking. You can check the account balance & any matter related to banking service through these online banking websites.
The methods of online banking include mobile accessibility and digital payments. Internet banking is environment-friendly as it reduces the usage of paper. The exceptional service of internet banking rendered by the banks has not only increased and benefitted customers and but has also helped in the development of the bank.
Online banking has not only made life easier for customers like you, but it has also contributed to the significant economic growth of the banks! In the digital era, it can easily be called one of technology’s greatest gifts to humans!
What You Should Be Aware of While Doing Online Banking: CONS
The internet banking can be a blessing to many, but it might be a little difficult for first-time users who are not tech-savvy. There are also other drawbacks which make users sceptical of getting their hands on online banking. Some of them are listed below:
Security is one of the biggest fears of customers and the reason why they do not use internet banking. The instances of cyber-crimes and hacking are increasing day by day. The most prominent threat to modern banking is hacking. Even with the banking sector continually working on these issues hacking hasn't stopped. Most banks in India have introduced anti-phishing mechanisms to protect their customers. However, it is the loss of data and identity theft that keeps many users at bay from trying out online banking yet.
Most customers fear online fraud and cyber crimes. Many times, due to a technical glitch, the amounts either do not get transferred, or the transaction happens, but the customers do not have a status update on the same. This makes the customers doubtful of whether the funds have been transacted to the other account or not.
Customer Service Assistance
Since the customers are not approaching the banks so the relationship between the customer and bank is getting affected. Many users still prefer having human customer assistance than explaining the problems to a chatbot.
Both online and direct banking have their own sets of pros and cons. Both bear risks, but the banking sector is continually trying to reduce the issues. It is advised that you maintain both online and in-store banking practice for your own benefit.