Online banking is the same as internet banking. It is defined as transactions by the internet. And also, it is an electronic payment system & customers are easy to transactions with their accounts and it is a lower cost of banks.
In the operational process of online banking, customers should need to register with those financial institutions by getting passwords and other credentials for customer verification. Now financial institutions allocate the customer numbers. As well as, It is not same the account numbers. In that, they can visit their website by security. As well as, By using online banking, customers can do the following tasks.
1. Obtaining account balances
2. List of recent balances
3. Electronic bill payment
4. Transfer money between customer’s accounts and another account
5. Viewing images of paid cheques
6. Ordering cheque books
7. Download periodic account statement
8. Loan applications and transactions
9. Credit card applications
As well as, In most of the bank’s customers can download bank statements. In that customers can order cheque books, statements, report loss of credit cards and advice changing of address by online.
History of online banking
Origin of electronic media was in 1980 and Term of ‘online’ came after 1980. And also, in New York started online service in 1981. Firstly, the following four banks offered home banking systems.
Chase Manhattan bank
Manufacturers Hanover bank
Because of the commercial failure of videotex, there is not popular this system. As well as, In 2000, 80% of US banks offered the e-banking. In 2001, bank of America launched the top 3 million, online banking customers.
Advantages of online banking
There are so many advantages to online banking. By that, we can get many services. In addition to that, it effect our time mainly.
1. Access to anywhere to a bank account by mobile or computer
2. Less time consuming
3. Safety and security
4. Can transfer money immediately
5. Easy to use