Internet Banking Definition Including Features & Security Issues

Learn what is internet banking definition including the various features and security issues forming part of this online service.

What is Internet Banking Definition

Some people refer to this method of banking as virtual banking, e-banking as well as online banking. In order to use the online facility of the financial institution, customer need to have internet connection. This should be registered with the institution for availing the service. It is necessary also for setting up passwords. This is for the protection of the customer verification. The password that a customer uses with online banking cannot be something that is similar to telephone banking. Read below the features and security of internet banking.

Internet Banking Features

Banking online go so far as to allow individuals various things like viewing recent transactions, balances, bank statements and paid checks, etc. It is also possible to order bank account check books online. Customers enjoy using this kind of banking system. It also makes transfer of funds much easier than having to stand in line at the bank. The system makes many transactions much easier for customers. Internet banking is therefore a good thing for a savings account as well as checking. One must however not overlook the fact that there are security issues that banks must always take into consideration. See some of these below.

Security Issues associated with Online Banking

Financial institutions must ensure they put necessary security systems in place to protect customers’ bank account information and transactions. There are always persons seeking to do transactions using fraudulent means. Bank employees as well as persons on the outside are known to have broken security and transfer funds illegally from customers’ accounts. Insiders at times will try to leak the credentials used online to loot the accounts. Most banks implement the finest security measures for this purpose. However they have to constantly update such systems.

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You can contact us to learn even more on the topic. There are also books on the definition of internet banking you can get at amazon that will give even more information.