What is Online Banking?
It is the use of the internet to deliver banking services to customers. Online banking is also known as internet banking, e-banking, electronic banking, virtual banking, or digital banking. Common channels through which banks offer online banking include web portals, websites, and mobile apps.
Beyond traditional banking services, digital banking has generally revolutionized the way we manage our finances. Customers of banks and other financial services providers no longer need to visit bank branches to initiate and conclude transactions.
With just a few clicks, you can now access your bank account, transfer funds, pay bills, and much more, all from the comfort of your home or on the go. In this blog post, we will explore world of online banking, its benefits, and how you can make maximum use of this revolution in banking services.
History of Online Banking
The development of online banking started several decades ago, particularly with the early automation of the 1960s.
During this period, banks started using the mainframe computer to process some functions such as cheques processing and customer data management. For instance, Bank of America started using ATM in the 1960s which allowed customers to withdraw cash remotely without visiting the banking halls.
However, what could be said to be the first online banking service appeared in the 1980s when Citi bank introduced a system that allowed its customers to access their accounts through a dial-up connection.
With increasing level of internet adoption in 1990s, banks began to create online portals. These portals enabled customers to access account balances, transfer funds, and pay bills on their banks’ websites from the comfort of their homes.
With the proliferation of mobile phones, banks now deploy mobile apps allowing customers to access and conduct banking services on the go via mobile phones. Increasingly customers no longer need to go to bank branches to conduct banking business.
Today banking is fast becoming fully digitized with the growth in digtial technologies like block chain and Artificial Intelligence. With these technologies a whole gamut of financial services value chain are rendered online. Customers can open bank accounts online, complete the complete KYC process, deposit cheques, cash and resolve issues using chat bots and virtual assistants.
Benefits of Online Banking
From the foregoing, the benefits of online banking are easily discernible . We highlight a few of these benefits here
#1. Convenience: One of the most significant advantages of online banking is the convenience it offers. You can access your account anytime, anywhere, whether you’re at home, at work, or traveling. No more waiting in long lines or rushing to the bank before it closes.
#2. 24/7 Access: Unlike traditional banks, it is available 24/7. This means you can check your balance, transfer money, or pay bills at any time that suits you.
#3. Efficiency: Online banking saves you time by allowing you to perform transactions quickly and easily. Paying bills, transferring funds, and even applying for loans can be done in minutes.
#4. Real-Time Monitoring: You can monitor your account activity in real time. This helps you keep track of your spending, detect any unauthorized transactions, and manage your finances more effectively.
#5. Enhanced Security: Banks invest heavily in security measures to protect your online transactions. Features like two-factor authentication, encryption, and secure login protocols ensure your data is safe.
$6. Eco-Friendly: It reduces the need for paper statements and receipts, making it an environmentally friendly option.
How to Get Started with Online Banking
To use and take advantage of online banking as offered by your bank, you will need a bank account, a device (smart phone, tablet, or computer), internet access, phone number and an email address. These days, with USSD one can still access some internet banking services using regular mobile phones.
With these items handy, you are ready to go:
#1. Choose a Bank
If you don’t already have a bank account, start by choosing a bank that offers robust online banking services. Research different banks to find one that meets your needs.
#2. Register for Online Banking
After you have created an account, enrol for online banking.
If you have an existing bank account, you can usually register for online banking through the bank’s website or mobile app. You’ll need to provide your account details and create a username and password.
#3. Download the Mobile App
Most banks have mobile apps that make online banking even more convenient. Download the app from your device’s app store and log in with your credentials.
#4. Set Up Security Features:
Ensure your online banking is secure by setting up features like two-factor authentication and strong passwords. Avoid using public Wi-Fi when accessing your bank account.
#5. Explore the Features: Take some time to familiarize yourself with the features of your online banking platform. Learn how to check your balance, transfer funds, pay bills, and set up alerts.
Staying Safe Online
As common with all aspects of digital transformation, data security is a major issue in online banking. A lot of customers have fallen victim of the activities of cyber criminals; hence the need to stay safe online cannot be overemphasized.
Here are some steps you should take to secure your online banking activities
#1. Use Strong Passwords: Create complex passwords that are difficult to guess. Avoid using easily accessible information like birthdays or names.
#2. Enable Two-Factor Authentication: This adds an extra layer of security by requiring a second form of verification in addition to your password.
#3. Monitor Your Account Regularly: Regularly check your account for any unauthorized transactions and report them to your bank immediately.
#4. Be Wary of Phishing Scams: Never click on suspicious links or provide personal information in response to unsolicited emails or messages.
#5. Non-disclosure of bank details: Scammers use many methods to trick you into disclosing your bank details: phony emails, phony phone calls, sms and whatsapp chats. The purpose is to get you to disclose essential details about your bank account. Once they get it, you are cleaned.
Know that your bank will not ask you for details over the phone or via emails.
What to Look For in an Online Banking Platform
User-Friendly Interface: The platform should be easy to navigate, with a clear layout and intuitive controls.
Comprehensive Features: Ensure the platform offers all the services you need, such as fund transfers, bill payments, and mobile banking.
Security Measures: Look for robust security protocols, including encryption, multi-factor authentication, and secure login processes.
Customer Support: Choose a bank that provides reliable customer support through various channels like phone, email, and live chat.
Integration with Financial Tools: Check if the platform integrates with your preferred financial management software and tools. These tools allow you create budgets and track expenses, access investment and/or loan management services, etc.
Some Top Online Banking Platforms
Here’re some top online banking services you can explore
#1. Chase for Business: a product of Chase Babk. It offers a comprehensive suite of banking services, including mobile banking, fund transfers, and payroll services. The service also provides integration with accounting software and robust security features; making it a choice for small businesses.
#2. Bank of America Business Advantage 360: Features a user-friendly online banking platform with expense tracking, bill payment, and mobile check deposit. It also Integrates with QuickBooks and other accounting software and offers extensive fraud protection and security measures.
#3. Wells Fargo Business Online Banking: Offers a wide range of online banking services, including cash management and payroll solutions. Also Strongly integrate with financial tools and accounting software. It offers reliable customer support and comprehensive security features.
#4. BlueVine: An online banking platform designed primarily for small businesses; offering no-fee checking accounts with high-interest rates. Features include bill pay, fund transfers, and integrations with accounting software. bluevine also delivers strong customer support and robust security protocols.
#5. Novo: Novo is a digital banking platform tailored for small businesses and entrepreneurs. It offers a no-hidden fee banking services to small businesses; including free business checking accounts and unlimited transactions. Also integrates with popular business tools like QuickBooks, Stripe, and PayPal. Novo priotises user-friendly experience and strong security features.
Conclusion
Online banking offers unparalleled convenience, efficiency, and security for managing your finances. It is banking from the comfort of your home or office which allows you to enjoy a seamless banking experience without going to the bank.
Whether you’re paying bills, transferring funds, or simply checking your balance, online banking makes it easier than ever to stay on top of your financial health. Enjoy the benefits while putting in place adequate measures to protect you from the activities of cyber crininals.
