Imagining a world without online banking can be hard today. But till even a decade ago, the only way you could access banking services was by visiting a brick and mortar branch in India. However, online banking first appeared in 1981, when the 4 major banks of New York, Chase Manhattan, Citibank, Chemical and Manufacturers Hanover, began using home banking services with the help of the videotex system. This attempt was largely a failure. But it showed the world what was possible by using the internet in banking services.
There were many subsequent attempts that were more successful and internet banking grew exponentially as a result. Coming back to 2020, the number of internet banking users is expected to touch 150 million according to a report by The Boston Consulting Group. This has largely been due to the wide reach of internet services and ease of opening accounts online.
The Benefits of Online Banking
The success of online banking rests on the vast benefits it offers to the consumer. Some of the main advantages of using online banking are:
24X7 Banking
If you have a full-time job, then finding time to go to the bank branch can be difficult at times. This can be true in other instances as well, such as if you live in a rural area and the bank is too far. In such cases, online banking is a lifesaver. With online banking, you can get the services from anywhere, as long as you have an internet connection and a computer or smartphone.
In addition, there are no restrictions when it comes to time as well. A physical bank is open on certain days and for certain hours. With internet banking, you can pay your bills, get your recharge done or check your balance at any time of the day. There are even options to pay your bills on a pre-determined date each month, automatically. This reduces the chances of late payments. There are also chatbots available to help you, in case you encounter any problem.
Time Saving
Online banking can be done from the comfort of your home. You do not need to go out, get stuck in traffic, and stand in long queues! This time can be spent with your family, on your hobby, or anything else you may like. Plus, you also save the money that you might spend on transportation and parking. Even opening an online bank account is extremely time saving online.
Instant Transfer of Funds
You do not need to write a cheque and then wait for it to be cashed in case of online banking. By making use of internet banking options, such as NEFT, RTGS and IMPS, you can instantaneously transfer funds from your bank account to other bank accounts.
Greater Control
Internet banking provides you the ability to control all your finances from a single place. Some banks allow you to activate your debit card online, put your lost cards on hold, change your ATM pin, and even make investments using online banking.
If you are thinking how to open a bank account online, then the process is incredibly simple. All you need are some basic documents and an existing account in the bank.
