Banking : Internet Banking

Many people now have access to the Internet and can communicate with other computers using the World Wide Web. Using a browser package it is possible to view information generated on other computers.

Banks have used this facility to enable people to access their bank accounts from home. Using the Internet bank customers can :

1.  Check an account balance and view or print a statement.
2.  Transfer money from one bank account to another.
3.  Pay bills.
4.  Set up or cancel direct debits and standing orders.

Some new banks only operate on the Internet. They do not have branches that you can visit. Because they do not have branches it is much cheaper to run an Internet only bank than to run a traditional bank.

Security is a very important issue when customers are allowed to access their bank account details over the Internet. Most banks require that a customer visits or telephones the bank and completes a form before he can access his account on the Internet.

Once this has been done, a username and password will be needed to access the account. Any information sent from the bank over the Internet will be encrypted so that it is difficult for hackers to steal the information. Additionally a log will be kept which will store information about where customers have accessed their accounts from and what they have done.

Advantages and Disadvantages of Internet Banking

Advantages
  1. You can access your bank account details from home or wherever you can use a computer.
  2. You can access your bank account details at any time on any day.
Disadvantages
  1. Some people are concerned about how secure it is to bank on the Internet.
  2. Some people prefer to be able to visit a bank and meet the people that they are dealing with than to communicate with a bank electronically.

GCSE ICT Companion 04 - (C) P Meakin 2004