Advantages And Disadvantages Of Online Banking

PC banking is a form of online banking that enables customers to execute bank transactions from a personal computer (FINCEN, 2000). The area of electronic banking realized through personal computers can be divided into home banking, internet banking and mail banking (Chovanová, 2006).

A. Home Banking

Home banking is a service that enables a bank client to handle his accounts from a computer at his home or in the office. The main features of home banking systems are the high level of security, comfort, simplicity of use, openness of the system, wide communication possibilities, networking, definition of users and their rights, automated data transmission and the option to define a combined signature specimen (Chovanová, 2006).

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B. Internet Banking

This is a type of e-banking service where customers’ instructions are taken and attended to through the internet (Chibueze, Maxwell, and Osondu, 2013). Internet banking sometimes called online banking or virtual banking is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer can accesses his or her accounts from a browser resident on the bank’s World Wide Web server (FinCEN, 2000). Internet banking offers customers the possibility of enjoying banking services from the comfort of their homes and offices. What this means is that customers can buy goods by placing orders from the net, instruct their banks to pay the vendor the invoice amount involved, and the products are delivered

(2013) internet banking have the following advantages for customers:

 Comfort – access to the bank 24 hours a days, 7 days a week, without depending on the bank’s schedule

 Low costs – in order to reduce the number of clients who go to the bank desks, there are fee reductions for the electronic payments

 Time saving and reduced expenses (no more transportation to and from the bank building)

 Safety – transactions take place in the best security conditions as customers use a user name, a password, and an encrypted channel

 Accessibility – online connection with the bank from any Internet connected computer; simple and ergonomic menu leading the client directly to the operation he/she wants to perform

One disadvantage concerns the additional costs of subscription and Internet