The advantages and disadvantages of internet banking

Internet banking has shown an explosion in the number of users in recent years, with many people seeing it as an easier and more convenient way to control their personal finances. Virtually all banks now have an internet banking option for their customers. There are downsides to doing your banking online too, however, especially for customers who aren’t experienced computer users. Here, in a list format, are the advantages and disadvantages of internet banking.

Internet banking is convenient and quick compared to doing your banking in person or over the telephone. You never have to wait to be served, or work your way through the layers of questions that you often get with an automated phone service. If you know what you are doing, you can check your account balance, pay your bills, transfer money, etc in a matter of minutes when banking online.

It also gives you a sense of control over your account, as you can perform all your everyday banking tasks yourself, rather having to go through a bank staff member, which can sometimes be time-consuming and frustrating.

You always have 24 hour banking with internet banking. When visiting a bank in person, and sometimes with telephone services too, there are restricted hours of operation.

Internet banking is especially useful for setting up and monitoring regular bill payments for utility services, rent, or mortgage payments etc.

It doesn’t matter where you are when you do your banking online - you can be in another part of the country to where your bank operates and still have access to your account, or even access your account from abroad for no extra cost.

Sometimes internet banking is cheaper. This is because it costs the bank less in terms of staffing etc.

You really need to have at least a basic level of internet and computer experience, if you wish to do your banking online. People who are used to traditional banking will find that the online version is completely different. Using a website is not straightforward to a novice and often the help and support from the bank is severely limited (banking websites are often more catered towards selling customers extra banking services, rather than helping them to use the website).

Fraud and ID theft are the biggest causes of concern for many people, although it’s fair to say in practice that more people are defrauded through scams where fraudulent emails ask them to sign into their account on counterfeit websites (giving their name and password), rather than by having their accounts hacked into by outsiders.

It can be easy to lose track of automated bill payments. You set them up and then don’t monitor them. Six months later you may come back to find that your bill has changed and you have been overpaying. Alternatively, sometimes you have more money debited from your account than you were expecting.

Internet banking is completely impersonal. As well as making the experience less friendly, this can create problems with more complex transactions such as applying for a loan. The ability to convey subtle information is often lost when banking online and it is also difficult to know if the person at the other end grasps what you are trying to say.

Internet banking websites are often set up to prioritize advertising and sell extra banking services, rather than to help the customer use the website. Adverts often take up most of the spare space on the page, while links to help and support, or contact details for speaking to a member of staff in person are small text links that can be hard to find.