Internet banking
Liz Neethling

Thanks to technology, and Internet access in particular, we seldom have to leave the house if we don't want to. We can order flowers, pay bills, book a flight, make investments etc. In fact the list is endless, we can do just about anything without setting foot outside our homes. In a nutshell we can shop, communicate and even do our banking online. It seems the future is online, and isn’t it fascinating that with the click of a mouse, online banking is almost replacing banking as we used to know it. Most standard transactions are possible through the net, I have to say it doesn’t get more convenient than this. In essence the power of the Internet has changed the way we do banking. Banks are harnessing the power of the Internet to provide electronic banking services. It is beneficial to both the bank and its customer. No wonder most major banks offer internet banking.

What is internet banking?

INternet Banking is the use of a personal computer for making transactions in bank accounts over the Internet. The Internet is literally changing the world as we know it, into the World Wide Web. The www is an amazing network that makes so many things possible that could only be dreamt of before. Going to the bank, for most of us, is time consuming. Finding parking, rushing to the bank before closing time and then once inside, after completing all the necessary paperwork, waiting in line to be helped. After all this one only hopes to get service with a smile, which is all too often lacking. I salute the innovation of internet banking, its arrival is truly a miracle.

Internet Banking Service Offering

By registering for electronic banking one has to access various important services and facilities. It is possible to request statements, to review the history of the account’s transactions, transfer funds from one account to another, pay water and electricity bills, or settle school fees. Prepaid cell phone accounts can be topped up and very important, is one can apply for an overdraft facility online.

Benefits of Banking Online

All too often we complain about how little time we have to do all the things we want. Surely you will agree with me banking often gets pushed to the end of the list, even though it is really important to ensure that our finances are in order. Well I would like to make a bold statement by saying you no longer have an excuse not to attend to your banking more frequently. The convenience of online banking truly contributes to our quality of life! Banking can happen from almost anywhere you are, as long as you have Internet access. Even on a fishing trip in a remote area, because technology actually does make the world your oyster. You can keep an eye on your account anytime of the day or night. Discrepancies are noticed more quickly and can be dealt with more swiftly. Being in control of your finances is what it’s all about.

The hassle of paperwork is also eliminated to a great extent and transaction records are accessible online whenever you need them. In other words banking has become more hands on for the customer, there are no more queues and far less branch visits. Internet banking provides a safe environment with hardly any of the usual frustrations. The convenience of internet banking makes the cost well worth it.

Benefits to the Bank

New technology has given banking a facelift. With real time, electronic online banking 24 hours a day, both the bank and the client have more control. International banking opportunities have generated business on a global scale. People worldwide are becoming more and more aware of how fragile the environment is and that we have to take great care to protect it. Online banking definitely contributes to the success of this mission, because paper waste is reduced

Internet Banking Risks

There have been a lot of valid concerns regarding the safety of internet banking. Change is difficult to accept, and takes time for people to adjust accordingly. Security is a risk, but it is a calculated and managed risk. Some customers avoid electronic banking as they (perhaps wrongly) perceive it as being too vulnerable to fraud. The security measures employed by most banks are never 100% safe, but in practice the number of fraud victims due to online banking is very small. Internet banking user interfaces are secure sites (generally employing the https protocol) and traffic of all information - including the password - is encrypted, making it next to impossible for a third party to obtain or modify information after it is sent. However, encryption alone does not rule out the possibility of hackers gaining access to a vulnerable home PC and intercepting the password as it is typed in (key logging). There is also the danger of password cracking and physical theft of passwords written down by careless users.

Many electronic banking services therefore impose a second layer of security. Strategies vary, but a common method is the use of transaction numbers, or TAN, which is essentially a single use password. Another strategy is the use of two passwords, only random parts of which are entered at the start of every online banking session. This is however slightly less secure than the TAN alternative and more inconvenient for the user. A third popular option is providing customers with chip card readers capable of generating single use passwords unique to the customer's chip card. Another option is using digital certificates, which digitally sign or authenticate the transactions, by linking them to the physical device (e.g. computer, mobile phone, etc).

Links

Visit your bank's website to find out more about their online banking service

• www.absa.co.za
• www.fnb.co.za
• www.standardbank.co.za
• www.nedbank.co.za

Future of Online Banking

The number of customers who choose online banking as their preferred method of dealing with their finances is growing rapidly. The future looks bright with more people using the Internet on a daily basis for electronic banking amongst various other things. The day may come when cash will be obsolete. Banking via one's cellphone or PDA as the next option seemed impossible, but technology has already proved the skeptics wrong.

Requirements for Internet Banking

Usually special hardware or software is not necessary, as long as you have a computer, Internet access and a browser, as well as an Internet bank account with a financial institution. You are then geared to go on line and do your banking.

Conclusion

Internet Banking enables you to manage your finances safely and conveniently. It gives you the freedom to attend to your personal and/or business banking 24 hours a day. You do not know what you're missing if you do not have Internet banking. I'm sure, that those who make use of online banking will all agree it’s worth every cent, because the benefits far outweigh the risks.

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