Internet Banking Definition Including Features & Security Issues

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



The Internet Banking Definition

Internet banking definitionInternet banking is a system of electronic payments that banks and other financial institutions make available to customers. This makes customer transactions easier. It makes it possible for the customers of these institution to carry out their financial transactions on the website of the institution. This method of banking today forms part of the services of building society, credit union, virtual bank, retail bank, etc.

Some people even 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 serves as a purpose 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 for ordering 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 whether a customer uses a savings account or 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

Financial institutions must ensure they put necessary security systems to protect customer 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 of the banks implement the finest security measures for this purpose. However they have to constantly update such systems. There are books you can get at amazon that will give even more information.