Does Internet Banking Make Traditional Banks Better?

Internet banking is something traditional banks are starting to offer as part of their standard service. Traditional banks have started setting up their own internet banking facilities as more and more of their clients are asking for the convenience of online banking. Internet banking has also allowed traditional banks to attract more clients who are normally wouldn’t go to a brick-and-mortar bank.

Traditional banks normally offer two different types of internet banking. The first type of service is where you use personal finance software and you use that software to connect to the bank’s website. The personal finance software then adapts itself to the services of your bank. Another type of internet banking service is where you don’t use any software and you connect directly to the bank’s website.

Internet Banking Facilities

If you already have personal finance software installed on your computer, you can use that software to connect with your bank. The most popular personal finance programs recognized by most banks are Quicken and MSN Money. As you use your software to manage your accounts and track changes; you’re connected with your bank. Depending on the type of software you have and what online services your bank offers, you can basically control your account using your personal finance software.

Using personal finance software for internet banking is very convenient because you have everything there in one package. You have budgeting tools to help you manage your money. You can automatically update your financial information once your personal finance software is connected with your bank. You can even use your software to pay your bills and taxes online.

Even without the software, you can still check your accounts and pay your bills online using your bank’s website. Your bank may require more stringent security measures and you may have to pay a monthly fee to gain access to online services. Another disadvantage of not having the software is that you have to request for your financial information manually, instead of having automated updates. The money management tools on bank websites are also quite limited compared to that of personal finance software.

Regardless of the type of internet banking facility you use, you’ll basically get the same service for both types. These internet banking facilities have given traditional banking clients added convenience and control over their accounts. It has made traditional banking more accessible by giving each client personal attention. Overall, internet banking has made traditional banks better and stronger than ever before.

______________________

Internet Banking Security Features

Internet banking facilities take security very seriously. Whether it’s the website of a traditional bank or an internet-only bank, they all spend a considerable part of their revenue in making sure their system is secure and their clients are well protected.

Internet banking facilities usually use encryption programs to protect their data. They also require passwords, personal identification numbers (PINs), security keys for their clients to help verify their identity. All these measures should ensure that only you and your bank have access to your accounts. But how come we still hear a lot of stories about identity theft and stolen money through internet banking?

These things happen mainly due to human error. We can be careless and we make mistakes. Hackers and thieves get past these strict security features because we have given them the ability to do so. In order to make the most out of your bank’s security features, we have to have security of our own. Here are some tips to improve the security of your internet banking.

Tips For Added Internet Banking Security

• Once you get your password or PIN, memorize it and destroy any copy of it. Don’t leave a trail for thieves to find. If you do forget your password or PIN, call your bank immediately. They’ll be more than willing to help you change your password and PIN as soon as your identity is verified.

• Delete your browsing history, cache and cookies regularly. Anyone using your computer may be able to retrieve your username and password by going through your history. Learn how to disable the auto-complete and auto-password save function of your browser so it doesn’t automatically type in your passwords.

• If you’re handling multiple accounts, use a different username and password for each one. It is added work but it’ll make you accounts more secure and prevent hackers from getting into all your accounts.

• Use strong passwords. Strong passwords are usually longer than 8 characters, uses a combination of letters, number, and special characters, and uses upper and lower case letters. As far as you can use common words when building your passwords, they’re easy to remember yet hard to figure out because they’re not directly related to you. And as much as possible, avoid using personal details, like names or dates as our password; it’s the first thing that hackers try.

• Avoid accessing your internet banking accounts in public computers or unsecure servers. It’s easier to get your information in an internet cafe or when you use your laptop in a coffee shop because you have no control over the network. Anyone with access to that network can access your information, even if you don’t want them to.

• Avoid storing your internet banking statements in your computer. If you do need copies for tax purposes, make a back-up copy and store it in a safe place. If you’re not ready to delete them yet from your computer, make sure to encrypt your files. So that if your computer is stolen, the thieves wouldn’t be able to access your information.

______________________

The Internet Bank – Features You Should Look For

The Internet bank is becoming more and more popular because it’s easy and convenient. It also provides services that you normally wouldn’t find in a brick-and-mortar bank. There are so many internet banks out there that offer a wide variety of services it’s hard to choose which bank is the best.

There are certain criteria that can help you in choosing the right bank. Top performing online banks have certain features in common that make them stand out from the competition. These features have a lot to do with the level of service, security and quality of an internet bank. Here’s a list of features that you should look for in order to find a good internet bank.

Features Of A Good Internet Bank

• No Fees For Online Transactions. Most people use online banks in order to pay their bills online. It’s more convenient, it helps you keep track of your bills and helps avoid delayed payments. It’s quite unfair that some banks charge for a service that allows them to earn regardless. A lot of banks charge a monthly fee in order to have the convenience of paying your bills online. Most good internet banks don’t charge any fees for online payments and some offer this service for free for certain clients.

• Easy To Navigate Website. In traditional banking, it’s the bank tellers and the banking staff that provide customer service. For an internet bank, it’s their website that allows them to interact with their clients and provide customer service. This is why it’s important that an internet bank should have a good website. Not only does it have to be attractive. It also has to be easy to use, easy to navigate, and should have more than enough security features to ensure the protection of clients.

• Good Website Tools. The service an internet bank provides is dependent on the quality of website tools they have available. Look at your bank’s website and check what tools are available to you and what tools would you like to have. Does your bank archive your transactions and allow you to view them? Do they provide scanned copies of checks you’ve written? Do they have money management tools? Do they have a tool that allows you to manage multiple accounts, even those from other banks? Do they provide email alerts whenever large amounts are withdrawn or when your account balance is low? An internet bank that provides a lot of good website tools means they’re more likely to give you good service.

• Convenient Fund Transfer. One of the main selling features of internet banks is that they allow you to transfer funds quickly and safely. A good internet bank would allow you to transfer funds easily and would provide prompt alerts whenever there’s any unusual activity in your account.

______________________

The Internet Bank Versus Bricks-And-Mortar Banks

An internet bank is the modern alternative to the traditional bricks-and-mortar banks that we know. An internet bank is not the same as an online banking facility of an established bank. With an online banking facility of a traditional bank, you still have to do most of your banking transactions in an actual bank. For the most part, the website of a traditional bank is just an extension of the actual bank. The transactions you’re allowed to perform are limited and require the approval of the traditional bank.

An internet bank exists entirely online. They’re legitimate banks where you do all your transactions over the internet. They basically give all the services of a traditional bank except that they don’t have the physical structure of a bank. Are you interested in trying out an internet bank? Here are the pros and cons of internet banks to help you decide if this type of banking works for you.

Pros and Cons of An Internet Bank

An internet bank has two main selling points: convenience and free banking services or higher interest rates.

An internet bank is more convenient mainly because it’s online. It’s always open. You can go to their website anytime whenever you want to check your accounts or pay your bills. It is very accessible. You can reach your bank wherever you are, as long as you have a computer and an internet connection. There’s no need to change banks or look for local branches when you have to move or when you’re travelling.

An internet bank is cheaper to operate because it doesn’t have offices and employees to maintain. They’re able to pass on these saving to their clients by offer free services or higher interest rates that you normally wouldn’t find in a traditional bank. With internet banks, you can pay your bills or transfer funds without having to pay a monthly service fee. Some internet banks attract clients by offering high-interest rates, as much as twice the rate a traditional bank would give.

Another great thing about internet banking is you have more control over your money. Most internet banks allow you to customize your accounts and to maintain multiple accounts. They also allow you to manage all your accounts, even those from different banks. They’ll provide you with budgeting and money management tools to help manage your spending. And because they’re always open and always online, they’ll be able to provide you with up-to-date information about your accounts that you can access as often as you want.

Unfortunately, there are still some things that internet banks cannot do. If you need to deposit cash directly, you have to mail the money to them. It can be risky and quite inconvenient if you’re the type of person who deposits cash regularly.

Another drawback of internet banks is the ATM fee. Since they don’t have any physical facilities, this means that internet banks don’t have their own ATMs. If you need to withdraw cash, you’ll have to pay the ATM fees which could be quite expensive.

Another disadvantage of the internet bank is that it could take 10 business days to put in a check request. This could be a major source of stress especially when you use a checking account to pay bills. With traditional banks, checks are debited as soon as they’re received. But with internet banking, you may have to pay your bills at least 10 days in advance in order to avoid late payment. That’s 10 days’ worth of interest that your money could have earned in your checking account.