Innovictor
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The Internet is the single most pervasive force that is bringing about compelling change in all aspects of human endeavor. The Internet has changed the way we communicate with ourselves and with the world around us, the Internet has changed the face of commerce, education, and the banking industry is experiencing unprecedented change because of the Internet.
One of the changes being wrought by the Internet in the banking industry is the speed with which financial transactions are being carried out. These days, the Internet has practically eliminated the need to go into the physical structure of a bank before you can conduct financial transactions, all thanks to online banking. The piece seeks to explore the pros and cons of online banking with a view to helping you make an informed decision.
Pros of Online Banking
Convenience
One of the key advantages of online banking is the convenience it offers you to conduct financial transactions anytime and anywhere. Do you need to send some money to a friend but don’t have the time to go to a bank. You can easily log into your online banking platform on the web or mobile applications and you can transfer the funds from your account into the beneficiary's account irrespective of whether its 12 midnight or there is a curfew in town.
Faster than Going into the Bank
The second advantage of online banking services is the speed with which financial transactions can be carried out. To start with, you need not leave your home/office to go to a bank before you move money from your account to meet financial obligations.
In addition, online banking allows you to avoid the long queue in the banking hall as well as the inability of the bank employee to process your fund's transfer request immediately. You can expect funds to move from your account to be beneficiary's account within seconds of receiving a confirmation inasmuch as you have good internet connection.
Lesser Transaction Costs
I bank primarily with Access Bank and I don't know much about the transactional costs of online banking in other banks. However, I do know that the N100 transaction cost when I make online transfer from my Access Bank account to other bank accounts is actually cheaper than the cost of taking public transport to those banks before depositing money in a beneficiary's account.
Cons of Online Banking
Security
Nigerian banks are investing heavily in building top-notch security systems across their banking platforms. Nonetheless, security threats are real and a decent effort on the part of highly skilled cyber criminals could yield loopholes that could be exploited to steal from online accounts. Hence, you may want to be certain that your bank has a foolproof security system across its online banking platforms.
Impersonal Relationship with Your Bank
Another drawback of using online banking services is that it eliminates much of the interaction and interpersonal relationship you could have otherwise had with your bank. If you bank the traditional way, you'll have a couple of minutes to interact with your banker and those interactions could serve you in good stead when you want to approach the bank for an overdraft or a loan.
However, with Internet banking services, you won't be communicating with a person in realtime and the little interactions you'll have with the bank will be via email, live chat or phone calls.
"Steep" Learning Curve
Learning to use your bank's online banking service might not be very easy especially if you are not very conversant with the use of computers and the internet. The fact that your money is involved in the mix could lead to a heightened state of fear that could immobilize you from doing the simplest financial transaction from your online banking platform.