Glossary > Finance > Banking > Online Banking

Internet Banking

Internet Banking, also known as online banking, is a digital platform provided by banks and financial institutions that allows customers to conduct various financial transactions and services over the internet. It offers a convenient way for individuals and businesses to manage their accounts, transfer funds, pay bills, and access other banking services without visiting a physical branch.

Example #1

Sarah pays her credit card bill online using her bank's internet banking portal instead of mailing a check or visiting a branch.

Example #2

John transfers money from his savings account to his checking account using his bank's mobile banking app while on the go.

Misuse

Misuse of internet banking can occur through phishing scams where fraudsters attempt to steal sensitive information like usernames, passwords, and credit card details by posing as legitimate entities through fake emails or websites. It is crucial for consumers to be vigilant and avoid sharing personal or financial information in response to unsolicited communications.

Benefits

One of the key benefits of internet banking is the convenience it offers to users. They can access their accounts and perform transactions at any time, from anywhere with an internet connection. For example, busy professionals can schedule bill payments or fund transfers without having to take time out of their day to visit a physical bank branch.

Conclusion

Internet banking provides consumers with a convenient and accessible way to manage their finances, offering a range of services at their fingertips. However, it is essential for users to remain cautious about protecting their sensitive information and to use secure connections when accessing online banking platforms.