What Are the Advantages and Disadvantages of Internet Banking?

Internet banking is easy and convenient.  The primary advantage of Internet banking is convenience, the main disadvantage is security.

There are both advantages and disadvantages to Internet banking. Let's look at the advantages first:

Advantages of Internet Banking

• The ability to access information 24 hours a day, 7 days a week from a computer or laptop. 
• The power to check account balances anytime, thus avoiding overdraft charges. 

• Online banking is fast and efficient. 
• The ablity to see transactions immediately. 

Disadvantages of Internet Banking

It is also important to consider the negatives when looking into Internet banking:

• Banks have protections in place, but there is always the possibility (however slim) that something will go wrong.
• Setting up the online account can seem daunting.
• If your Internet connection or the bank’s server is down, you won’t be able to access your information or make transactions. 

Mobile Banking

Now that you know the advantages and disadvantages of online banking, you may also be interested in the next step in banking: mobile banking.  Mobile banking is referred to M-banking or SMS Banking and is simply doing your banking from your mobile device, like a cell phone or a PDA - Personal Digital Assistant. The current technology of the iPhone and the Android operating system enable customers to have access to the following banking services:

• Checking your balance and activity
• Receiving alerts about activity or overdrafts
• Manage insurance policies, pension plans, etc.
• Access card, loan, or mutual funds statements
• Stop payment on a check
• Block lost or stolen card
• Change you PIN or get a reminder
• Check on the status of a credit request
• Make transfers and process payments
• Receive real time stock quotes
• Locate ATMs