Online banking advantages & disadvantages

Written by hayley ames Google
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Online banking advantages & disadvantages
Online banking is a convenient way to access financial services. (Jupiterimages/Brand X Pictures/Getty Images)

In a world where the internet plays such an important role, internet banking is one of the important tools and services that are available at our fingertips at any time. However, not everyone is happy to do their banking online. While there are many advantages to online banking, not all aspects are an improvement on traditional banking. Whether a person chooses to use the service or not depends on which aspects are most important to them.


One of the clearest advantages of internet banking is the convenience that it offers. Available through a home computer, laptop or mobile phone, online banking allows people to access their bank to check balances or view transactions wherever they are. Unlike the local branch, online banking is open 24 hours a day. In addition, many banking services are available online and they can all be accessed conveniently from the same point.

Keeping track of spending

While more traditional banking methods rely on receiving a monthly statement to check incomings and outgoings, online banking has the advantage of allowing people to view the information instantly, whenever they need to. With online banking, people can keep on top of their spending and check that bills are being paid. Internet banking also makes it easy to control spending before a problem such as exceeding an overdraft limit occurs rather than having to wait until the end of the month, when the statement arrives.


Online banking is much faster than traditional banking. Firstly, there is no need to travel to the branch and queue to see a member of staff. One of the most positive aspects of online banking for many people is that it is easy to fit around their busy lifestyles. Even a process such as applying for a loan or savings account can often be completed easily online in a lunch break instead of having to book an appointment with a member of staff in a bank and wait for a decision to be made.


While internet banking is mostly secure, it can be a target for criminals and security issues are one of the biggest disadvantages of using the service. Phishing, where fraudulent emails are sent to obtain bank details by posing as a message from the bank, can lead customers to quickly give away access to their funds before realising that there is a problem. Computer viruses that cause fake websites, posing as the bank’s real websites, to appear can also give criminals access to other people’s bank accounts. Simply leaving passwords written down in an unsecure place can also pose a major security risk.

Level of customer service

The lack of customer service can also be a disadvantage of online banking, particularly for people who are new to the service. Some people miss having the opportunity to talk to a member of staff directly when they have a query and find internet banking too impersonal.

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