Nowadays, the banking system has become more valuable, easier to use and equally saves time because of the electronic banking system that was introduced. We are sure that you are aware that in the comfort of our home you can now pay bills, transfer funds, and view account statement, which was not so before. However, some of these valuable services have advantages and disadvantages. That is why in this article, we will be highlighting the advantages and disadvantages of electronic banking system.
10 Advantages And Disadvantages of Electronic Banking
Balanced View of Electronic Banking
Some people will argue that electronic banking system has no disadvantage? However, because it is beneficial does not make it perfect. This article will give a balanced view of the electronic banking system.
Advantages of Electronic Banking
The advantages of the electronic banking system are the good benefits that it offers, and they are;
- Easy to open: It is very easy to open and operate your online account.
- Very convenient: With electronic banking, you can easily pay bills, transfer funds, check the statement of your account, etc.
- It keeps information about your transaction: You do not need to be keeping receipt of all your transaction because they are all online. So, you can get them at the snap of your finger by asking for a digital statement of account from your bankers.
- It saves time: Instead of standing in a long queue that can be exhausting and wastes your time, to pay your bills, you can do that easily from the comfort of your home.
- No limitation of time: Yes, you can operate your account and do a transaction at any time and any day, because it is available for 24 hours, 7 days a week. Also, there is no barrier, as long as there is an internet connection.
- Very fast and efficient: The banks transfer your funds at a fast pace and you can also use it to manage several accounts easily.
- It allows for easy monitoring of account: You can always keep track of all your account transactions and balance. Also, you can track any fraudulent activity or threat to your account, quickly to stop it.
- Integrated banking services: Integrated banking services allows the bank to compete in a new market to expand its customers base. This expansion also leads to the growth of market share and profitability.
- Security is secure: By making use of state-of-art encryption and security technologies, the security and the privacy of customers information are guaranteed.
- Better support facilitates: The e-banking has extensive customer support facilities which include phone, chat and email contact. This gives the customer an easy way to reach the bank anytime they have an issue with the bank.
Disadvantages of Electronic Banking
These are the bad side of electronic banking.
- Hard to use as a beginner: If you are new to internet banking you might face some challenges which will make it hard for you to use the banking services.
- Limited access: The only way you can access your online banking platform is only when you are online. So, without internet access, it will be useless.
- Your account can be hacked: Do you know that the information of your account saved online can be accessed by a third party? For example, if hackers get access to the transaction password to your account, they can easily transfer all the money in your account to their own and quickly withdraw it.
- Your banking information is not a secret: If you do not secure your account well, you will discover that your account information has spread out to several devices. For example, if you save your account details, the pin number of your ATM Card and other personal information in your phone and lose it, you can lose more money if it falls into a wrong hand.
- Transaction Failure: Sometimes your transaction may be unsuccessful. So you must visit your bank to rectify it. Some of the causes of this failed transaction are loss of network connection, or the bank’s server is down, etc. This is so painful as it usually happens when are hard pressed to get a transaction through to the other party.
- Bank Server Down: When a bank server is down or a service providers server is down, you cannot make an online transaction that period until the server comes back on. You can imagine if it was very urgent, you still have to wait.
- Your account may be used by a third-party: If someone has access to your password inadvertently, that person can use your account for their own selfish interest. This is how risky online banking can be.
- Annoying notifications: Some notifications may annoy you as some service providers, may send the same message 3 to 5 just to earn SMS alert fees. This is sometimes annoying.
- Constant emails and updates: Do you know that it is not everyone that likes seeing updates or even email. Most debit alert emails are downright annoying.
- You cannot undo your transaction: The electronic banking system is fast. Be careful when you are on it. You may not have the chance to undo the transaction that you have authorized. For example, if you send money to a wrong account, it may take the grace of God to recover the money.
What are the popular services that are covered under E-banking?
- Internet banking
- Electronic funds transfer system (EFT)
- Mobile banking
- Credit cards
- Debit cards
- Telephone banking
- Smart cards
- Check the truncation payment system, etc.
Lastly, we have been able to give you the advantages and disadvantages of electronic banking system. So you can judge for yourself the side that benefits you more. One thing you cannot deny is that it is e-banking fast paced. In addition, it gives you a lot of ease despite the drawbacks. Finally, you should know that there are risks when you register for online banking. Hence, you should also keep your passwords and banking details from prying eyes. We hope this article is useful to you, please leave a comment.