Online banking (OBL) is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual hank, credit union or building society. It allows a user to execute financial transactions via the internet. Online banking is a service offered by banks that allows account holders to access their account data via the internet. Online banking is also known as “Internet banking” or “Web banking.” Online banking through traditional banks enable customers to perform all routine transactions, such as account transfers, balance inquiries; bill payments and stop payment requests, and some even offer online loan and card applications. Account information can be accessed anytime, day or night, and can be done from anywhere.
Online banking software provides personal and corporate banking services offering features such as viewing account balances, obtaining statements, checking recent transaction and making payments. In the United States, prominent online banks include Ally Bank, Bank5 Connect, Discover Bank, GE Capital Bank and Synchrony Bank.
Advantages: There are some advantages to using online banking both for banks and customers:
- Permanent access to the bank
- Access anywhere using mobile or computer
- Less time consuming and we need not go directly to the bank
- Very safe and secure method
- Helps to transfer the money immediately and accurately
- Easy to use
- Less time-consuming.
Although online banking security is continually improving, such accounts are still vulnerable when it comes to hacking.