Pros and Cons of Internet Banking

Internet Banking comes loaded with wide array of advantages and services. However, it also has its share of drawbacks. Internet Banking is a technology dependent service and any flaw in the technology can bring the entire system down. Before beginning to use the internet banking service, you should know its advantages and disadvantages.

Pros and Cons of Internet Banking Pros of Internet Banking

(1) Easy to use: Internet Banking facility is extremely easy to use. To access your account, you need to remember your username and password. It is easy to do all the transactions with detailed steps and instructions available over the internet.

(2) Cost Effective: Internet banking is very cost effective for not only the customers but also for the banks. Banks need to maintain few buildings and employ less staff as there is very less involvement by salaried employees. It greatly reduces the working load of bank and savings made by the bank allow them to provide lower lending rates, low service charges and higher interest rates on savings accounts.

(3) Bill payment services: Now you need not worry about pending electricity bills, telephone bills, DTH bills, etc. You can pay them by sitting comfortably in your home with few clicks on your PC. Moreover, to encourage customers to do online banking, more customers are being offered free bill paying services.

(4) Anytime anywhere banking: Internet banking gives you the freedom of banking from bank working hours. Now you can enjoy anytime and anywhere banking transactions. It not only saves your time but also keeps you away from stress.

(5) Get best deals: Internet Banking offers best deals on various banking products and services such as Credit cards with low rates, impressive rates on Savings, rebates on ATM surcharges, etc.

Cons of Internet Banking

(1)No face to face interaction: With internet banking services, there is any face to face interaction with banking personnel. If one get stuck somewhere in the transaction or need guidance in carrying out transaction then it becomes difficult for account holder.

(2) Difficult to resolve dispute: As only phone banking is available for account holder when he is doing transaction over the net from his home, it becomes difficult to resolve any dispute as phone call requires him to wait on hold for longer period before resolution can be provided.

(3) Can’t use the service in case of power failure or computer shut down: In cases of power failure or computer shut down, one cannot use the service.

(4) Lack of full proof security: There is lack of full proof security with internet banking as there are many hackers around who may cheat you by using phishing or virus programs.

(5) Can’t use without internet: You cannot use this service in absence of secure internet connection. One has to get an active internet connection and device like PC, Cell phone or PDA to avail the facility of internet banking.

(6)Account holder needs to be computer savvy: In India, where only a small proportion of people use internet and computers, internet banking is a distant dream for computer illiterate public.