E-Banking or Electronic Banking as it is called refers to the provision of banking and banking services through electronic / digital channels. The most popular digital banking channels include Internet or online banking and mobile banking. Let us take a look at the pros and cons of E-Banking Services through the Internet or by using mobiles:
Pros of E-Banking Services
Anytime, Anywhere Accessibility
E-banking provides users with 24 hour access to banking services, 7 days a week, round the year. What is more important is that this access is immediate – no traveling, no waiting for parking and then no waiting in queues!
You can also access e-banking through a wide variety of devices including desktop, laptop and notebook computers and a wide range of smart phones.
Electronic banking provides you with an up-to-date, in fact up-to-the-minute view of all your accounts.
E-banking permits you to conduct a whole host of banking transactions from the convenience of wherever you are. These include opening or closing term deposits, transferring funds, paying bills, trading, investing, applying for products like credit cards or loans – the list is virtually endless and depends upon the bank offering the service.
E-banking provides you with the facility to link all your accounts – savings, current, term deposits, loans, credit cards under the same account name. With all your banking accounts under one roof you can better manage your spending and saving. You can, for example, set standing instructions for regular bill payments. Financial management becomes so much more easier.
E-banking is generally very safe and secure. Almost all banks use a 128-bit Secure Socket Layer (SSL), which is one of the strongest encryption technologies used by large-scale online merchants, global banks, and brokerages worldwide.
In addition, various banks have different authentication procedures in place that enhance the security of your banking. These could involve the use of a security device or token. You can also opt for receiving alerts and reminders whenever transactions happen enabling you to be alert to fraudulent happenings on your account.
Cons of E-Banking Services
Restrictions on Transactions
You may not be able to perform certain types of transactions ( financial or non-financial) through e-banking channels. These may be due to regulatory or policy reasons. These restrictions could also be device applicable. For instance, certain transactions that you could comfortably complete via a desktop may not be accessible through your mobile.
Restrictions on Limits
Although most banks have enabled their customers to carry out a wide range of transactions through electronic banking it is important to remember that there may be limit restrictions placed on certain types of transactions. For instance, you may not be able to transfer funds above a certain limit either domestically or internationally.
Product Sign-Up Limitations
Certain products or services may not be instantly available online. You may be able to register to show your interest in such offerings but you may have to go through an online-offline process before you can avail of such products.
Absence of Personal Guidance
Electronic banking channels may have made banking more convenient and more accessible but they are impersonal in character. And, even if there are services like “Chat” available customers may still require the reassurance of human interaction. Moreover, a branch officer may be able to get you waivers, extra discounts etc based on your personal relationships which may not be available online.
Finally, when dealing with complex transactions like investments or retirement planning solutions you may require the support and hand holding of an experienced executive in person.
A Few E-Banking Services
Bank Mandiri offers e-banking through the Internet, through mobile apps, through SMS, through their ATMs and through their Phone Banking Services. Citibank offers a wide variety of services including e-alerts, e-statements and e-advices, through the Internet, through SMS, through mobile apps and through the Internet browser of your phone. Standard Chartered Bank, ANZ and HSBC also offer e-banking services through Internet and mobile channels.
Other E-Banking Channels
ATM Banking – A number of banks enable customers to carry out a range of banking transactions through their ATMs other than cash withdrawals.
Phone Banking – Several banks offer phone banking services; customers can carry out a range of transactions be either talking to a representative or through the “IVR” (Interactive Voice Response) system.