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Thursday, May 21, 2009

Online Banking: An overview

Security token devicesImage via Wikipedia
Online banking is also known as Internet banking. It is a banking method that uses the internet to perform financial transactions on secure website managed by a commercial banking institution.
.As people move straight forward in the aspect of technology, banking is also upgrading towards more systematic and convenient approach.

Online banking has many positive features. One of it is costumer convenience. Before, people can only make a transaction, like deposit and withdraw money, from local banks personally. In conventional banking, bank clients have to “fall in line”, just to perform banking transactions. But with online banking, it only takes people to log in a computer and in few clicks and maneuver, your financial transactions are accomplished .Location ,also, does not matter anymore, because internet makes it possible to be globally connected.

Since banking is the topic, you can also apply for a personal loan in online banking. And that’s not all; with online banking people can pay bills for water bills, schools tuition, shop online, and even order a pizza.

Online banking does not only offer convenience but also security. Online banking security has two types; one is the use of PIN (Personal identification number)/TAN (Transaction authentication number).We usually calls PIN, “password”. PIN is commonly used in ATM cards (4-6 digit numbers) and TAN is used in one time transaction.

The other security system is Signature based online banking where the account owner is asked to confirm a transaction via signature that has been already encrypted digitally.

But such security system does not guarantee total protection .The passwords can be stolen if you have used it in a non-secured websites. Hence, the best way to make an online banking transaction is through secured and legitimate website.

Generally, online banking has many good benefits. But still, it is up to consumers how to use it properly, and beneficially.

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