Friday, June 19, 2009

Online Banking

Banking has evolved from simple bookkeeping to electronic records, the use of technology have made the banking services from transactions to accessing the accounts even easier and convenient to consumers.

Online banking is the most convenient of all banking technologies, the use of personal computers to access the accounts and ATM cards for withdrawing money without the bank authorities’ approval are some of the few benefits of online banking.

A huge number of banks offer online banking services but some do not, small banks having a low consumer base will not offer this service, most probably the banks with multinational presence having international consumers will provide it. Consult your bank for the procedure of having an online banking account but for my knowledge, it will require an account application for reviewing your financial status and a good credit rating.

The technology used by banks for offering online banking services is far more advanced and robust, the consumers will be handed the account name or number and password and they can access their accounts from any computer.

The online banking services vary from one bank to another, probably the services include balance check, transfer money to other accounts, reviewing transactions, accessing records for cancelled checks or ordering new checks.

The most interesting benefit with online banking is electronic wire transfer between accounts of two different financial institutions. The banks provide facilities for paying your monthly bills online and you have the comfort of maintaining the electronic record of these payments. Another interesting advantage for online banking is direct deposit of your monthly payments from different sources all that is required is to have access for your account number and the payments will de deposited in matter of hours.

The disturbing fact for online banking is security of account holders which have compelled a many of them not to opt for this service, if the bank website is hosted on a secured server is well and good but due to the large presence of malicious hackers online, the personal information of account holders can be accessed by third parties without any difficulties.

Banks generally charge modest fees for these services but depending on your clean history of transactions and account balance the fees may be waived.

Online banking services are very cheap when compared to direct mail or postage.

By : Mohammed Aijaz, an online banking forum dedicated to the discussion of international banking topics on loans,investment,credit,bank operations and all other banking issues.Free banking forum for banking discussion.

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