Wednesday, April 8, 2015

The Pros and Cons of Online Banking - Yahoo News Philippines

See - The Pros and Cons of Online Banking - Yahoo News Philippines





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The Pros

Internet banking in the Philippines is comparable to what is being implemented in the United States and other countries where web-based banking is popularly used. Hence, the advantages are not that different. These advantages can be summarized as follows:
Convenience - The biggest advantage of being able to do banking transactions on the web is the convenience of not having to move around to pay for purchases or to get paid, plus the ability to access bank accounts wherever there is Internet connection available. Fund transfers can be done in a few seconds with a few clicks or keyboard strokes. For families that need to send money from abroad or to a foreign territory, banking via the Internet also has the advantages of faster transactions and better monitoring. When it comes to financial monitoring and management, you can easily track account activity. Almost all online banking services in the Philippines can facilitate bills payments. Additionally, many online banking services offer interesting plans or programs to help customers in managing their finances.
Safety and Security – Online banking transactions are secured by SSL, which reduces the likelihood of someone intercepting Internet traffic and getting user details. In addition, since online transactions minimize the need to physically go to remittance or payment facilities, you are protected from burglary and mugging.
Near-24/7 Banking – Except when the banks perform their regular maintenance routines, online banking services can be accessed virtually anytime and from anywhere there is an Internet connection. Payments or remittances can be completed almost anytime of the day. Transactions are also not affected by holidays and weekend breaks.
Paperless Transactions - Digital copies of bank statements, invoices, bills, receipts, and other documents generated when completing financial transactions take away the clutter of their traditional paper versions. This alos means online banking is environmentally friendly.
Lower Fees and Easier Account Maintenance - Overall, there are fewer fees and charges associated with online banking as compared to traditional banking, especially for transactions involving ATMs, which charge fees for inter-bank transactions. Most online banking interfaces are intuitive enough , so it’s not difficult even for those who are new to online banking to find their way around.


The Cons

Online banking offers compelling benefits but it also has drawbacks. An important disadvantage to consider is that not everyone has adequate access to the Internet, nor are familiar with digital platforms. It also introduces a host of risks involving social engineering. Even if online banking interfaces are protected by secure HTTP and SSL, a user may be duped into sharing one’s password through email or spoofed online banking interfaces, if one is not careful.
Other potential threats include keyboard loggers, and password-saving features on browsers. If you lose your laptop or mobile device and your passwords are stored, then thieves might be able to access your bank account and credit card information.
Another possible disadvantage for online banking, at least in the Philippine setting, is the preference for physical transaction receipts. While many banks offer systems that involve printable e-receipts, it may not always be easy to use these as reference material when raising complaints and settling transaction issues online.
Lastly, online banking in the Philippines is not yet widely used and seamlessly integrated with traditional systems. For example, not all stores in the country handle online banking payments. Only the more popular ones like BPI enjoy the support of merchants and it’s hardly an option switching banks just to make use of the online payment facility.
Still, the cons of online banking are not really major drawbacks that will justify the aversion to banking through the Internet. As more consumers make use of online banking services, so will the benefits continue to increase.
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