E-banking is becoming bigger and better. Nowadays, very few people visit banks to do their transactions. This fact does not come as a surprise since people prefer online transactions which are less laborious and time-saving. Are you familiar with E-banking? If no, then this article got you covered. It will outline facts about e-banking. In addition to that, it will bring out the advantages and disadvantages of e-banking. Read on to find out.
What is E-Banking? – Meaning
E-banking refers to electronic banking. That is, it is an electric-powered payment system that allows online transactions through different financial organization’s website. E-Banking helps its users to withdraw cash, pay bills, pay taxes and so forth. This field is large. It is accessible via different forms. Forms of e-banking include internet banking, mobile banking, and telebanking. You can also own an Automated Teller Machine (ATM), smart card, debit card and an e-cheque. Choosing to opt for e-banking has its advantages and disadvantages. Check out the merits and demerits of e-banking below.
Advantages of E-Banking
- E-banking is less laborious compared to the traditional one.
- It goes beyond geographical boundaries which expands banking.
- E-banking is efficient due to the paperless working,
- This system guarantees better services and total customers’ satisfaction.
- It saves on time since you don’t have to make long
- E-banking allows first-class monitoring of your account.
- Simple to operate.
- This system is convenient for essential.
- It is a day night service which makes it more reliable.
- E-banking is fast.
- It is a great medium where banks get to endorse its other services such as investments and loans.
- Online banking offers better and more friendly.
- Transactional errors are rare.
- Online accounts are easy to build up and maintain.
- E-banking allows paying of different monthly bills without straining.
Disadvantages of E-Banking
- E-banking is prone to hacking and other illegal transactions since no system is perfect.
- In case of information exposure, your account is prone to internet imposters.
- Some transactions are slow and may cause hours of tension before the transaction is complete.
- Some banks may have weak security policies which expose their customers to fraud.
- Maintaining a stable internet connection is expensive.
- Successful E-banking transactions require some necessary computer skills which are not one known by everyone.
- Learning how to use e-banking may be challenging for some people.
- E-banking requires security passwords which some tend to forget.
- When your bank’s server is down, online transactions are impossible.
- E-banking eliminates some critical banking services and features.
- Some transactions requires direct communication to be successful.
- E-banking may not entirely solve your account’s issues and problems.
- It eliminates the face-to-face communication which is frustrating and feels insecure.
- Different e-banking forms have limitations. For example, your ATM withdrawal cannot exceed a certain amount of cash.
- With the high necessary resources and skills, not all banks can afford e-banking.
Technology has its shortcomings and e-banking is no different. The above discussion highlights the advantages and disadvantages of e-banking. Weigh the above points and know if this is something you want to venture in. This article will help you settle for a wiser decision.
By: Maureen Muriuki