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Online Banking

Advantages and Disadvantages of Online Banking

Experience the future of banking with online banking. It’s more than just banking services—it’s your financial ally, offering a lifestyle upgrade and empowering you with the freedom to manage your finances anytime, anywhere. 

Imagine a seamless and secure banking experience that gives you easy access to a wide range of services tailored to your needs. Discover how online banking can transform the way you bank and take control of your financial journey.

Online Banking

What is Online Banking?

Online banking, also known as Internet banking or electronic banking, refers to a financial service that allows individuals and businesses to conduct various banking transactions and manage their accounts over the Internet. It enables customers to access their bank accounts, view account balances, transfer funds between accounts, pay bills electronically, apply for loans, set up automatic payments, and perform other financial activities through a secure online platform provided by their banking institution.

Online banking platforms require users to log in using secure credentials such as usernames, passwords, and often additional authentication methods like one-time passwords or biometric verification. These platforms employ encryption and other security measures to protect sensitive financial information and transactions from unauthorized access or interception.

How Online Banking Works in Nigeria

Online Banking in Nigeria is a digital platform provided by banks and financial institutions to allow customers to perform various financial activities over the Internet.

To start using online banking services in Nigeria, interested individuals need to register for an account with their bank, or any digital bank they have a keen interest in. This process involves visiting the bank’s website or downloading their official mobile app on the App Store or Play Store. 

Then provide personal information like their name, address, contact details, and account number and in other cases, if you are signing up for a new bank, you are given an account number. They also create login credentials, such as a username and password, to securely access their online banking account. After registration, customers can log in using their username and password. 

While some Nigerian online banking platform includes additional security like two-factor authentication (2FA) to verify the user’s identity.  This may include receiving a one-time password (OTP) via SMS or email or using biometric methods like fingerprint or facial recognition.

After creating an account, customers can access a range of online banking services like; checking account balances, transferring funds between accounts (both within the same bank and to other banks), paying bills, topping up mobile phone airtime, and managing account details such as standing orders and account statements. 

Additionally, banks in Nigeria offer customer support services to assist online banking users with inquiries, technical issues, and account-related concerns through various channels like phone, email, chat support, or physical branch visits.

Online banking

Advantages of Online Banking

1. Convenient Access anywhere

Experience the ease of banking at your fingertips. Operating an online bank gives the feeling of having your bank with you. With that, you can manage your finances and get any financial complaint solved from the comfort of your home. Online banking, frees you from the constraint of conventional banking hours whereby you can manage your transfer funds, pay bills, and fulfil other financial needs without worries.

2. Real-time transaction alert and Delivery

Be updated on your instant transaction alerts. Online banking keeps you updated on your account activity in real-time. No more waiting on monthly financial statements, take control of your finances with immediate notification on every transaction. 

3. Personal Finance Tools

Online banking offers more than the usual conservative banking. If you could save a coin for every transaction you make, imagine your finances in the next 12 months. And that’s exactly how an online bank can help you manage your finances.  Online banking is not limited to the basics of transactions, bill payments or data and airtime recharge. With an online platform, you can budget, save, invest, and control your finances. 

4. Empower your business with a Business Account

Enjoy efficient business account operations with online banks’ streamlined processes. Redefine your business account operations from fund transfer to bill payment, and ensure that all your business needs are catered to by opting for the right online bank business account.  While having a business account makes running your business easier, it’s important to ensure that the bank you are signing up with has the right banking features to cater for your business needs. For streamlined business financial operations, you can explore Mintyn Bank’s Easy Collect feature to be secure about your business finances.

5. Online Banking Customer Support

It’s almost impossible to have a seamless online banking experience without our customer service support. The online banking platform you intend to sign up with should be able to provide you with an exceptional banking experience making your financial journey easy. With reliable customer support, you can be assured of starting your financial journey with confidence. A dedicated customer service support will be willing to guide you through any banking difficulty. 

  • They serve as your Personal Financial Assistant

Customer service support is more like financial assistance. Most Internet banking support is available around the clock to provide a tailored solution to any financial or technical issues which is not common in most traditional banks. 

  • Tailored solution and Invisible support

The customer support team is available whenever you need them to provide you with tailored solutions and support without inconvenience. In online banking, the customer support team operates in the background to provide personalised assistance when needed to ensure a smooth banking experience at every level of exploring different financial services.

Online Banking

Disadvantages of Online Banking

While online banking is on rave due to the various perks and flexibility it offers, some downsides accompany it.

1. Technical issues

Online banking can experience downtime, glitches, or maintenance issues as its operations solely rely on Internet connections. While it’s easily accessible to use on the go. This can also be a disadvantage if you have a disrupted internet connection or you are in a remote area, you may have limited access to transactions or other financial activities. Having a situation like this could be frustrating, especially for individuals who rely heavily on online banking for their financial activities.

2. Security Risks

Majority of the banking institutions ensure the privacy and security of their customers. However,  an Online Bank is vulnerable to hacks, frauds and even identity theft. Therefore, as a user, you have to be vigilant with your information and login details. But you could prevent security risks by;

  • Enable Two-factor authentication: Enabling a 2FA includes an extra layer of security to your online banking app or website.
  • Use Official Apps: Ensure you download the bank app from the official app store or Play Store to avoid downloading the wrong app.
  • Beware of Phishing: Be cautious of calls, texts, or emails demanding your banking information. Also, avoid clicking on any unknown links.
  • Use a strong Password: Use a strong and unique password for your online banking account. Let it be a mix of uppercase and lowercase letters, numbers and symbols. Avoid using guessable names or information.

3. Limited services

While online banking offers convenience and accessibility, some services may require an in-person visit to the bank. This includes; 

  • Transactions that can’t be performed on the online banking platform like investment transactions or loan applications require personalized guidance from a banking professional. This can also apply to some cash transactions of depositing large amounts of cash or exchanging cash currencies all of which require a physical bank.
  • Required Bank Documents: Some bank processes require verification of physical documents. such as identification proofs, legal agreements or paper-based forms. These document-related tasks are not fully supported on online banking apps.

How safe is an Online Banking platform?

When it comes to online banking, data security is always a top priority. Most online banks employ advanced encryption and authentication processes to ensure the security of customer’s information and transactions. Therefore you can be rest assured your information is always safe.

What types of accounts can I manage on an online Bank platform?

There are various accounts you can manage on a banking platform. Which depends on the bank and its offering. 

  • Savings Accounts: This is just a basic account for earning money. This account is also known to earn interest from time to time.
  • Business Account: For customers with business, online banking platforms often allow the opening of business savings, business checking accounts and any other business accounts you wish to open.
  • Loan Accounts: If you have any form of loan account with a bank, you can rest assured that you can also manage the account on the banking platform.
  • Investment Account: Some online banks allow you access to investment accounts allowing you to buy and sell stocks, bonds, or other investment products.
  • Joints Accounts: With an online banking platform, you can also open a shared account with another individual such as a savings joint account, or current joint account.

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