Advantages of Electronic Banking

Online banking saves time, money and space by automating transactions, reducing billing times, check writing and billing expenses. Online banking can even reduce filing cabinet space that may always seem too full. Online banking may also makes use of secure websites; if you see https in a website address, this means information you provide in online banking transactions can only be read by you and the bank.  Encryption of financial data is another reason why online banking is safe.

• Automated transactions

Automated transactions allow banking clients to perform a transaction without even being there for the transaction. These transactions can occur on a one time, or repeated basis. For example, Automated Clearing House (ACH) deposits, pay check deposits, and pre-scheduled bill payment can all be automated using some online banks’ electronic banking.

• Bill payer services

Another reason to use online banking is electronic bill payment or e-bill payment. These can be set up through a banks online banking software and once the recipient data is entered, the information is already there for future transactions saving even more time. E-bill payments are set up using account numbers and company information.

• Secure website services

Many people have concerns about the safety of online banking, however online banking may be even safer than in person banking. This is because computers are not subject to human error reducing the probability of this type of error by up to 50 percent.  Also, as time has progressed, so has the experience and technology used to prevent identity theft. Additionally, savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) regardless of whether transactions are performed online or not.

• Data encryption

Data encryption is a technique used to protect information transferred over the internet. Encrypted data makes use of ciphers that allow only senders and recipients to scramble and unscramble banking information for the purpose of protecting it. These ciphers are incorporated into online bank programming and are secured by time sensitive online banking.

• Multiple banking privileges

If the above reasons aren’t enough to consider online banking perhaps knowing the amount of transactions that can be performed online will. A number of services can be performed using online banking including fund transfers, deposits, withdrawals, bill paying, personal information updates and more.  These transactions can all take time, money and space when done the traditional way.

In summary, there a multiple reasons why online banking is a good idea. There are even online money orders through sites like Payko that lower the need to drive to the nearest post office or money order dealer. Online banking doesn’t necessarily eliminate the need for in person banking, but can definitely reduce the number of times one has to go to a bank or post office to perform financial transactions or pay bills.