What Is Net Banking?
Net banking, also called internet or online banking, is the process of conducting banking transactions over the Internet. Viewing bank statements and the status of a bank account online also comes under the definition of net banking. The bank updates accounts and records of transactions almost instantly on the Internet. This form of banking comes with both benefits and scams. Banks need to use enhanced security measures to ensure the safety and privacy of Internet transactions.
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History
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The 1980s ushered in the era of online banking. The 1980s ushered in the era of online banking. Banks used the term "modern home online banking services" for online banking in the 1980s. Customers viewed online banking with skepticism at first. After the development of strong security systems, net banking increased in popularity in the 1990s. The Bank of America became the first bank to have 3 million customers performing banking transactions and viewing their account statements online.
Features
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Net banking has several features. Viewing bank account balances and performing banking transactions online constitute the main features of net banking. Customers can view balances and account statements online anytime--and anyplace if they have a laptop or handheld Internet link. Online transaction services offered by banks include bill payments, wire transfers and transfers of money between accounts in the same bank or transfer of money between two accounts in two different banks.
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Benefits
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Many benefits come from net banking. Customers have access to their bank accounts and can view transactions 24 hours a day, seven days a week. Customers can perform transactions conveniently on a global scale through their PCs or handheld computing devices. Net banking removes the geographical barriers that exist in traditional banking and has made banking more cost-effective and efficient.
Warning
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Beware of scams. Customers were skeptical about net banking at first because of scams and online thefts by hackers. Banks had to develop several security measures to protect their Internet customers from fraud and other forms of theft. Phishing scams are a common method of Internet fraud in which scammers send an email as if sent by the bank seeking the login ID and password and use the information to hijack the account of customers and steal funds. Banks caution customers not to fall prey to scammers and inform customers that they will never ask them for their login or password information in emails.
Potential
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Save your money. Net banking has immense potential with the increased focus on paperwork reduction. Banks use advanced electronic methods so that customers can view accounts and perform transactions on the Internet or on mobile devices. Some banks offer discounts or waive account maintenance fees for online customers. Statistics predict that between the years 2009 and 2014, the estimated total number of net banking customers in the U.S. will increase from 54 million to 66 million. Young adults between the ages of 18 and 29 will increasingly use the Internet to perform all banking transactions and to view their account balances.
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References
- Photo Credit banking card in macro image by Alexey Klementiev from Fotolia.com jar banking image by Yury Shirokov from Fotolia.com bargeld image by Holger B. from Fotolia.com english bank notes image by Jeff Dalton from Fotolia.com gold bank image by John Sfondilias from Fotolia.com piggy bank image by inacio pires from Fotolia.com
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