Essay Help Services



1. Introduction

Internet banking or online banking is the system in which electronic medium is used for transactions. It can include customers, banks or financial institutes which executes these financial exchanges through websites of these institutes. These websites are directly connected to the core of the institutes. While the majority of the organizations have a physical presence due to which they are able to provide effective services to their customers. The online banking system has now become a backbone of the system itself. Internet banking is totally different mobile banking. Mobile banking includes the use of an application on a smartphone, whereas as in the case of internet banking a browser is used (Aladwani, 2001).

2. Advantages of internet banking

Majority of the young generation has paid special attention to internet banking. This is because of the fact that it is more convenient than the regular banking system. Due to higher rates of interest and lower operational costs, most of the people avail the services offered by the online banking system. To perform manual services, users have to spend extra money on transportation. With the help of online banking system, all these issues can easily be mitigated. Various advantages of internet banking are as follows

Easy to use: The account opening process is really simple. Users can easily access the whole application and perform the tasks easily.  Users do not have to face issues as second person’s involvement is not done. By using the internet banking system, users can easily activate and then operate their accounts via internet connectivity.

Availability: As the account is being operated online there is no fixation on the working hours of the system or availability of the services. As long as a working internet connection is present an account can virtually be used for a number of different operations (Bons, Alt, Lee & Weber, 2012).

Convenient: Online banking system is very much user-friendly. Bills can be readily paid; funds can be easily transferred from one particular account to another without any need for paperwork. One big factor is the elimination of receipts as all transactions can be viewed at any time on the go.

Fast: Online information system is a fast and effective system. With the help of this system, users can easily do the transactions and bill payments via the internet from anywhere.

Security: The account holder can have an eye on each and every penny of his money and all the transactions can easily be accessed at a single time. This reduces the risk of any fraud or wrongdoing in the account.

Publicity: Online banking has become a great medium for endorsements for the banking sector. Regular advertisements help in generating greater revenue as more and more customers will avail the functionality and services offered by the banks easily and effectively (Zhu & Lin, 2012).

3. Disadvantages of online banking

While keeping in mind all the good that online banking has introduced into the banking system. There are still some disadvantages that may affect the business performance of banks. The basic disadvantages of the online banking system are:

Understanding: Beginners may face problem while accessing the online banking system as it is very confusing at sometimes. A demo version is sometimes present but not for each and every step. This particular aspect may affect the performance of the business (Cornell, 2019).

Access to internet: A faulty network or no access to the internet makes it as users will not be able to avail the banking services. Therefore, it is important to have a working network connection to operate all the banking activities in an effective manner.

Security: Transaction security has become a major threat to the internet banking module. As all the transactions are done over the internet, there are chances that the hackers can easily access the personal details and financial data of a person or a firm. Due to hacking issues, users may have to face data loss and privacy issues.

Faulty bank servers: If breakdown on the bank's side is faced, the system will shut down. The person will be unable to access his/her account in the meantime. This could result in a delay of fund transfers which could further results in loss of business.

Transaction success: In some cases, the performance of the system may get affected due to bad network or loss of connectivity or even due to some abrupt reasons. Due to all these issues, users may face difficulty in accessing the data and transferring the money from one account to another.  

Password: Password memorization and frequent changing are very necessary because if it is not done properly then the account becomes prone to hacking which results in financial and other kinds of losses. This issue may affect organizational reputation.   

4. References

Aladwani, A. (2001). Online banking: a field study of drivers, development challenges, and expectations. International Journal Of Information Management21(3), 213-225. doi: 10.1016/s0268-4012(01)00011-1

Bons, R., Alt, R., Lee, H., & Weber, B. (2012). Banking in the Internet and mobile era. Electronic Markets22(4), 197-202. doi: 10.1007/s12525-012-0110-6

Cornell, S. (2019). Disadvantages of Internet Banking. Retrieved from

Zhu, D., & Lin, T. (2012). Causes and Effects of E-service Quality for Online Banking. 2012 13Th ACIS International Conference On Software Engineering, Artificial Intelligence, Networking And Parallel/Distributed Computing. doi: 10.1109/snpd.2012.117


Search Here

Latest Reviews


Payments And Security