Online Banking

Banking has changed a lot through the years. It used to consist of paying in your money yourself and then it developed into cheques that would be read as a note. However now it has changed as you can do everything you need to on the internet, without having to physically go into your bank. Furthermore money does not exist in that state, gold and oil is used as the currency because they are more valuable and tradable. Less money is kept in the banks as it is usually kept in central banks.

                                                    How Online Banking works:

Online banking works so that you can do everything directly without having to physically go to the bank, this including, transferring money and viewing your bank statements. Your employer sends your money to a clearing house which then gets distributed to various different banks and directly ends up in your account, therefore making it easier for you to receive your payment. You can also view your personal statements to see where you have spent your money and where your money has come from. There are also apps which tend to be easier to use and it is quicker to access on your phone wherever you are.

Security

Many people do not like to use online banking as it is perceived to be unsecure. This is because scams can happen online and it makes you vulnerable and it is much easier for hackers to get hold of your details online. An example of this is when you receive an email from someone who you think is your bank when really they just want you to give them your details. However over the years the security of online banking has improved, one improvement is the card readers which some banks provide their customers where you put your card in and enter your pin and it will create a random number in which you type in online and this allows you to access your online account.

Online Banks

There are a few banks that do not have the actual bank buildings but are just online. This can benefit the bank as there would be no spending cost of running the banks itself, only the spending costs of operating online. It would also benefit the customers as it means there could be no fees or higher interests. Furthermore the customer can receive many more services which other banks may not offer and personal statements could be a lot easier to read online without having to look through numerous papers. An example of a current online bank is First Direct which is also linked with HSBC direct banking and it is convenient to use all its services online. Another example is a former bank called Egg which had problems with being online so its credit card business was sold to Barclaycard and the business is now owned by Yorkshire building society.

Scopes of Online Banking:

The scopes of online banking are that you can move your money around in your account by yourself and you can make a payment to someone online without the hassle of physically doing it. Similarly money can be transferred very easily because it is now increasingly in the form of data. Also the card reader makes online banking more secure as it reads your card online so there is no fraud with your personal banking. It is much more convenient for banks as they find it cheaper to work online.

Limitations of Online Banking:

The limitations of online banking include that the reason it has happened very slowly is because it can be unsecure as it makes you more vulnerable to hackers. The security of online banking can be dangerous because of phishing and not being aware of whom you are giving your banking details to. Also if there are any problems with your bank account, it can be hard to sort out online and this can cause difficulties.

Personal Experience:

My own experience I have with online banking is having an app on my phone that connects to my own online banking account in which I can check my statements. I find this useful as it is very easy to access when I am out and about. On the other hand, I also have a card reader at home to use when transferring money and I found that it takes a while to get used to as I didn’t understand how to use it at first.