Pros and Cons of Net Banking You Need to Know

Fintech has changed the banking industry completely. It has led to the creation of various tools that have helped people easily access their banking services. One of these tools is net banking.

Every major banking institution has invested in this tool. This is because it makes banking simple and easy for you. It exceeds every benefit a traditional brick-and-mortar bank has to offer you. It also saves you the hassle of going to the bank for every little service you want. Banks noticed this issue and introduced net banking to their customers. It makes it easier, simplified and accessible for people.

What is net banking?

People’s use of different banking services has changed as a result of net banking. Making payments and transferring money has become easier because of internet banking. You can easily use financial and non-financial services from net banking. People prefer using Internet banking. It is because it eliminates the need to physically visit a financial institution.

You can quickly access different financial services using net banking. These include money transfers, applying for FDs and RDs, transaction history, and more. It offers instant access to all banking services. These include keeping a check on your account balance and transaction history, paying bills, and transferring funds. It is one of the main features of net banking.

You possess a unique ID and password to protect your account. So it is safe to use for people. Through net banking, you can update or disable your debit/credit cards. You can also apply for a loan or insurance plan. It has different features that benefit people in their everyday life. Net banking has its pros and cons like every other tool.

Benefits of using net banking

• Easy accessibility of banking services

The use of your banking services is made simple and easy to use through Internet Banking. You can use these at any time and from any place. It is a useful tool that can be used anywhere, 24/7. Sending money is simpler.

This is because it is secure compared to sending a registered check. You can also easily apply for a personal loan with less paperwork. It is a convenient banking tool to use.

• A more efficient and simple internet experience

It offers a simple yet secure online experience. You can manage all of your accounts at your fingertips as they are constantly in your control. From a single secure website, you can check your transaction history, loans, and account balance.

• Booking paymentsYou may open a recurring deposit account quickly and easily. According to your comfort and choices, select the deposit type, amount, and investment term.

• The wide options of add-on servicesA wide range of other services is offered by Net Banking. These include buying or selling mutual funds, getting insurance, and applying for various loans. You can also set up automatic payments for a mix of recurrent costs using your Net banking account. You can receive monthly payments from vendors. It helps you manage your cash flow and account transactions. This is because it is less expensive to run a net banking service than a traditional bank. 

Cons of using net banking

• Some security concerns have been raised

There were cases where internet banking was criticized because of its lenient security system. For this, the banking institution regularly upgrades its security firewalls and software. This is to ensure that your information is safe and secure. Banks pay a lot to safeguard their users’ information.

• Takes time to learn 

If you’re a person who has a deep understanding of the internet, it would be easier for you to use Net banking. But many people have a difficult time using internet banking. This is because they don’t have an understanding of it. The password that you use, or user Id may be difficult to use. To make it easier for you they provide various tutorials. These can guide you through the process and make it easier for you to use. 

• Impulse purchasing

When you can use your funds at your fingertips, it becomes easier and quicker to buy anything you want. This leads to impulse purchases that you may regret later. Be aware of your spending habits and track your purchases.

• No scope for a personal relationship

When you visit your bank branch you receive personal attention. This leads to a personal relationship with the bank. The bank can give personalized service and your issues are solved. In net banking instead of face-to-face meetings, various banks offer phone-based or chat-based customer services. 

• Depositing cash can be tough

To deposit cash you would have to visit an ATM or your bank’s branch. Sometimes you may need to deposit it into your traditional bank account and then transfer it to your online bank account from there. You can also deposit the money through a money order and deposit it electronically. 

The bottom line

After learning the pros and cons of net banking, it is very clear that the benefits outweigh the disadvantages. You can use different additional services through online banking. One of them is applying for loans. Check out the loans offered by Piramal Finance and find your preferred plan.

While using net banking, make sure you follow all the security guidelines for an easy, secure and simple experience. Online banking can be used through your computer or mobile. All you need is a bank account, password, a good internet connection and a device to use your internet banking. Have a quick and simple net banking experience with only minimal steps to follow.