What is Internet Banking

What is Internet Banking

Internet banking is the easiest way to carry out banking transactions in today's hectic schedule. Here we elaborates on the concept of internet banking.
WealthHow Staff
Last Updated: Jun 22, 2018
Online banking concept
Internet banking is used widely by masses, and has numerous benefits to offer. Nowadays, all banks provide online banking facility to their customers as an added advantage. Gone are the days, when one had to conduct transactions with a bank within one's vicinity.
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Online banking has opened doors for customers to operate beyond boundaries. Presently, people are so busy in their work, they have no time to go to the bank. Internet banking enables people to carry out most of their transactions using a safe website, operated by respective banks.
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It provides many features and functions for customers to view account balance, transfer money from their account to another(in the respective bank or other), get account summary, etc.
Benefits
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☛ In this procedure, many financial transactions can be carried out by simply utilizing a computer with an internet connection.
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☛ The necessary things that a person needs for using online banking are, an active bank account with balance in it for transactions, debit or a credit card number, customer's user ID, bank account number, the internet banking PIN number, and a PC with access to the web.
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☛ People using Internet banking are certainly benefited by the online services provided to them by the respective banks.

☛ The primary reason why it is so famous and mostly used is because customers are allowed to bank at non-working hours.
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☛ Banks create their banking interfaces and websites in a viewable and user-friendly manner, which enable customers to conduct their financial transactions with ease.
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☛ If they are stuck in any process while performing their online transactions, banks have another helpful facility that is 'phone banking', wherein customers can call the bank's toll-free number and get assistance in completing their transactions.
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☛ Electronic bill payment, viewing and downloading financial records, and money transfers are some of the general transactions which the customers generally carry out.

☛ All online banking services, provided by some banks, are free of cost.
Procedure
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☛ When a customer views the bank website, there are many options available, but to execute the transactions, he would obligatorily need to log into his virtual account. Without doing so, he won't be allowed to process any of these transactions.
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☛ Initially, when he opens an account with the bank, he gets a welcome kit having important documents like checkbook; a document which has the customer's user ID, online banking password, phone banking password, and account number embedded.
☛ The kit also contains some other confidential data, the credit or debit card, and the card details.

☛ The website will prompt the user to enter the necessary details, like the internet banking password and account number, and then will display his account information. At this stage, he can carry out all functions that are available on the website.
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☛ With regards to the password authentication and encryption, high security is maintained, as there is a chance of hackers getting unauthorized access to the customer's account and performing malpractices.
Secure banking
☛ However, banks keep their online security systems up-to-date to prevent such scenarios. Moreover, banks also suggest their customers to keep on changing passwords periodically.
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☛ They also implement some security measures like using unique login IDs, transaction codes, using two passwords, security tokens, etc., which generate automatically changing passwords.
Internet banking facilities provided by banks differ from bank to bank, and country to country. To know all online banking services and processes, one has to thoroughly refer to the guides, which are made available in the welcome kit. Moreover, proper care has to be taken regarding the confidential documents, since banking frauds are on a rise.