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ONLINE BANKING AND ITS ENTAILMENT

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The usage of online banking kick-started in the mid-90s, and has since then being used by a lot of persons all over the world. Online banking also known as network banking, Internet banking, E-banking or virtual banking is an electronic payment system.

It is one of the methods of banking in which transactions are conducted electronically on a secure website operated by the institution over the internet. It takes an online banking customer to have knowledge about technology and the internet before opting in for online banking to avoid future damage, because all necessary activities required, while engaging in online banking is entirely through the internet, whether through the bank’s application or even through the website.

To engage in an online banking, it is necessary for a customer to register and provide necessary credentials for such registration. To complement, one must have a prior knowledge about how to find his or her way around the internet and even the banking side of the internet otherwise things may go difficult.

Online banking provide means by which banks rather than its traditional way of providing services, use internet to provide such services at the discretion of customers. Such services include: funds transfer either within bank or out of bank, bills payment, check book request, view account information which includes: balance, manage debit/credit cards etc.

The traditional way of banking may seem timely and stressful in such a way that customer have to the bank to get his financial or whatever intending activity done.

The Automated Teller Machine (ATM) as a form of electronic banking  which was one of the earlier device to enable customers to engage in banking transactions even though limited but convenient. With the sudden rise in the use of internet banking, the use of ATM has decrease for some purposes with the exception of withdrawal of money.

Internet banking has been attracting customers based on its easy operation and low cost structure, representing an open window to several aggregate services, such as business-to-business solutions with payment through online websites; customers need not visit the bank as all about internet banking is a click on your computer or phone; time saving; management of account and account information and so on.

Despite the merits that online banking has posed to its users, online banking has it risks and bad sides. The fear that comes to most people’s mind is security issue in respect of online banking.

Recently, there has been a report from the Nigeria Electronic Fraud Forum (NeFF) stating that within the range of two years, that is 2017 and 2018, a total of 63,895 bank customers lost N 3.6bn to cyber-fraud. In connection, in the latest Nigeria Inter-Bank Settlement fraud report, it was stated that compared to N 1.6bn which was the loss suffered in the industry 2017, N 2bn loss was suffered in 2018. The following are the bad sides of online banking.

1.         Unnecessary Charges

This is mostly prevalent when a user intends to engage in bank transfer especially a transfer to an account other than the bank of the user.

2.         Cyber-Fraud

This is carried out in different ways to achieve an unapproved access to a customer’s account, which most times is to steal money from such account unknowingly to the customers till when the criminal act is being carried out.

These unscrupulous persons act on the information available to them, which may be gotten through virus invasion on the computer of the victim, which is unknown to the victim, thereby resulting to leaking of crucial information by the victim prior to act (fraud attack).

It is advised that online banking customers to always keep their details secret and safe to avoid any damage on the ground of fraud.

3.         Unexpected Disappointment

From the word ‘unexpected’ it shows that at times, aims of customers may not manifest during engagement in online banking which may be due to many factors such as network problems or technical problems within the ambit of the bank in question.

This may cause delay and time wastage while engaging in necessary transaction to be made.

4.         Likely Difficulties for Starters

For internet banking customers who are beginners or starters, it may be difficult most especially when such customer or customers do have a prior knowledge about the internet or even about internet banking.

5.         Uncertainty

This is so much possible when a customer carried out a transaction or activity and he is on the fence to know whether that transaction or activity was successful.

This occurs most times due to problems that come up, while carrying out such transaction or activity. Such as: bad internet connection or even a slow internet connection.

6.         The Cost of Internet

To engage in an activity online, one needs an internet connection to be able to access internet form of banking.

However, due to the presence of high cost of internet access in some societies the thought of online banking will be reconsidered before being ventured into.

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