What Is the Impact of ICT on Online Banking?

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Information and communication technology (ICT) serves as the basis of online banking. Internet banking has grown hugely in popularity since its development. ICT endeavors to make banking safe and accessible for users.

History

  • ICT has been used in the banking industry long before the development of online banking. For example, magnetic ink character recognition and ATMs both utilize information and communication technology.

Significance

  • According to ICT Regulation Toolkit, a website dedicated to information and communication technology, over a million people use Internet banking. ICT protects people who use online banking from falling prey to computer hackers.

Function

  • Services provided through Internet banking vary by bank. Some tasks you may be able to accomplish with online banking include checking account balances, transferring funds between accounts, paying bills, viewing transactions from your checking and savings accounts, viewing outstanding credit card balances, receiving online statements, viewing a history of your mortgage and checking the status of your 401k.

Benefits

  • Internet banking gives you access to banking 24 hours a day, seven days a week. Online banking also eliminates time and distance as barriers to banking.

Security

  • Banks can combat computer viruses, which make your personal information vulnerable to hackers, by using a firewall. The use of usernames and passwords in online banking helps to prevent against identity fraud.

Considerations

  • The use of Internet banking helps to keep operating costs down for banks, resulting in cheaper transaction costs for customers.

References

  • Photo Credit Pixland/Pixland/Getty Images
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