Why online banking system is the need of the hour

According to data the total online banking market is estimated around $11.43 billion in 2019. It has been calculated that it will reach a whopping amount of $31.81 billion by 2027. Financial experts have predicted that the CAGR will grow by 13% from 2020 to 2027.

In this article we will read about What is online banking or what is e-banking ? and the online banking system from its basic definition to its importance as a necessity for banking solutions.

What is Online banking or e-Banking ?

The system by which we can perform financial transactions as well as avail the banking services through the website or banking application is called online banking or e-banking. By visiting the banking portal or downloading the application on your smartphone these features can be accessed by the respective bank’s customer. Online banking provides 24*7 facilities that can be availed anytime from anywhere for serving the customer. Whether it is retail banking customers or corporate banking clients these features are available for all kinds of customers.

Importance of online banking

  1. Convenience

Since banking online portal or mobile application can be accessed anytime from anywhere it makes it very convenient for the customers to use its services with  a range of services , without going physically to the bank. With rigorous banking software development we have evolved the manner of banking services availed by the retail as well as corporate firms. In covid all banking operations were not halted with the feature of online banking, that kept the financial trouble of the customers at bay. There is no need to wait in long queues far from their respective homes. With the advent of all features on mobile banking the transfer of funds as well as receiving funds has not become a matter of inconvenience anymore for the banking services for the customers.

  1. security

Since all banking is an important part of our economy, special effort is given upon online banking to make it fully secure. With online banking the customers’ money and personal details are secured with high security as well as multiple levels of authentication.

For example there are provisions made for any banking portal to have multiple security certificates for running the portal online for maintaining the high security at the banks. Security features such as multi level user authentication, OTP for performing high value fund transfers, data encryption for any leakage of the customer’s profile and details, etc. This ultimately assures and gives the confidence of any leakage and hacking or execution of online frauds.

  1. Monitoring bank account

All the information as well as data of the online activity is saved online at the portal in real time. In other words you can have detailed information of your bank account either from the web portal or banking application of your respective banks. It means you can access details such as the amount of fund transfers with date and time, checking of charges deducted for availing services, buying policy , investment, etc. The budgeting and decision making become very easy with the use of online banking system. With this one can efficiently manage its financial planning by downloading the financial statement  according to the timeline needed, without the worrying of visiting the respective banks in a regular manner .Therefore with the help of e-banking the motoring of bank account has become extremely convenient and can be availed 24*7 around the year.

  1. No hidden charges

Since the whole transactions are done online on a web portal or mobile app there are no hidden charges pulled by the banks. As most of work is based online and is based upon software without any human intervention, so most of the charges levied are nominal and are transparent for the customer to behold. Rest the charges are managed by the bank itself as all of the process is automated in the banking portal.

  1. Multiple features without extra cost

There are a plethora of additional services provided by banks rather than financial transactions. Such additional features for some value added services are –

  1. The payment of taxes online via online banking for the state government as well as central government with the unified integration of banks and government payment services.
  2. E-collection features for availing the facilities of core banking such RTGS transactions between banks, inter banking transactions between the associated banks, direct debit features that enables the vendors to deduct the money directly from the consumer’s bank account, etc

Final words

From this article we can evaluate why online banking or e-banking is the need of the hour. Online banking serves the needs of the majority of people and boosts the accessibility of banking services far from the bank branches. It has proved substantial for the people who live in remote areas and the nearby banks are too difficult to reach. Therefore the importance of banking online cannot be avoided and can only be cherished for the welfare of the people.

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