Online Banking Overview

In the age of information technology, in order to complete any financial transaction, you no longer need to go to the bank branch and stand there long lines. Pay for the service, transfer money to your relatives or friends, change currency, control accounts and much more, wherever you are 24 hours a day, 7 days a week, you can do it using the online banking.

When did Internet banking appear?

The first systems that made it possible to remotely view bank accounts and manage them appeared in the USA in the mid-80s of the 20th century. They were called Home Banking and allowed people to use thier phones to connect to a bank computer and conduct the most basic operations. The system itself appeared as a response to the restrictions that were then legally imposed by the state on the banking business – credit organizations could not open their branches in other states.

A bit later, the development of Internet technologies pushed for the improvement of online banking systems. In 1997, also in America, the world’s first virtual bank appeared – Security First Network Bank. And in 2001, the depositors of the famous Bank of America could already independently log into their personal account on the website of their bank, check their account and carry out simple operations – certificates, payments and transfers.

What is online banking?

Online banking (Internet banking) is a system of managing bank accounts via the Internet. Any client of a credit institution that has registered in the system and received his username and password (which cannot be transferred to third parties for security reasons) can carry out various banking operations without leaving his or her home: pay for mobile communications, traffic police fines, a communal apartment without a commission, analyze expenses… For this, a user only needs to have a laptop, tablet or smartphone connected to the World Wide Web.

At the same time, with the development of technology, other operations will be added to the already familiar ones. So, soon the Internet bank will be able to signal light bulbs in your home.

Online banking features

Online banking services of leading credit organizations have similar functionality. Their features include:

1. Control over your account: you can always check the balance and track the movement of funds;
2. The ability to pay for services (taxes, fines, Internet, digital television, mobile communications). For the convenience of payment (so as not to waste time filling out details), you can create templates in the service in order to quickly make the same payments. Also, many banks offer the Auto Payment service. You can be calm when using it – everything will be paid on time. The system will independently debit funds from the account. This way you will save even more time;
3. The ability to open new accounts (deposits);
4. Transferring money from one account to another, payment on loans and credit cards, replenishment of electronic wallets;
5. Transfer of funds to the accounts of other customers of the bank and third-party financial institutions;
6. Lack of commission and special charges for use. Most credit organizations do not charge additional funds for using online banking.

Risks of using the service

Failure to comply with the necessary safety rules when using the Internet banking can be fraught with monetary losses. In this regard, when conducting any financial transactions online, it is necessary to:

• check if the connection is established with the bank’s server (is there a https prefix before the web address of the organization’s website) to avoid fraudulent
• use of resources;
• use licensed versions of anti-virus protection systems, protection against unauthorized access, from spyware;
• not leave the computer unattended;
• after finishing work in the Internet banking system, it is mandatory to log out of the system, close the browser window with the bank interface;
• not leave information about the username and password on the computer, not tell anyone about them;
• change the password for entering the Internet banking system once every couple of months;
• if possible, avoid working through public Internet access points and not work with online banking through insecure network access points;
• regularly monitor account statements (to avoid fraudulent write-offs of small and large amounts).

Despite the fact that online banking has its drawbacks, it is believed this is the future of the banking system.

• Wesley Cook