Internet banking or online banking is a system that allows customers of a bank to carry out financial transactions over the Internet through their bank’s secure banking website. According to statistics published by the Bank Negara Malaysia, there were 15.9 million Internet banking subscribers representing more than half the nation’s population. Catering to their needs were 31 banks which offered Internet banking services; of these, 13 banks are also offering mobile banking services, online banking’s latest evolution.
And, during the first quarter of 2014, 79.4 million Internet-enabled financial transactions worth Ringgit 1,037.1 million were carried out – attesting to the increased popularity of online banking. Let’s look at some of the main reasons why online banking has become so popular:
24/7 access
With online banking, you now have access to a near full range of banking services, 24 hours a day, 7 days a week, round the year, excepting downtimes! What is even more attractive is that this access is immediate – no travelling, no waiting for parking and no waiting in queues!
Convenient
With an online banking-enabled account you can now perform a whole host of banking transactions from the convenience of wherever you are. These include opening or closing term deposits, transferring funds, paying bills, managing cheques, trading, investing, changing your account limits, applying for credit cards or loans etc.
Up-to-the minute overview
Online banking provides you with a real-time view of all your accounts; you can view your latest position on all your accounts; many banks also support such real-time monitoring with SMS and email alerts.
One-stop shop for financial management
Internet banking provides you with the facility to link and monitor all your accounts – savings, current, term deposits, loans, credit cards etc. Such an overarching view will enable you to better manage your spending and saving. You can set standing instructions for regular bill payments and since you know your spending patterns well you can also set instructions for sweeping account surplus to term deposits thus enhancing your savings. Financial management becomes so much more easier when you are online.
Secure
Internet banking is both safe and secure. Almost all banks use a 128-bit Secure Socket Layer (SSL), which is one of the strongest encryption technologies used by large-scale online merchants, global banks, and brokerages worldwide. In addition, various banks have different authentication procedures in place that enhance the security of your banking. You can also opt for receiving alerts and reminders whenever transactions happen enabling you to be alert to fraudulent happenings on your account.
Free
Registration to and using of online banking services is generally free although certain services availed through Internet Banking may be charged; these possibly include interbank transfers, telegraphic transfers, cheque book requisitions etc.
Mobile banking
Bank Negara statistics reveal that, as at the end of Mar ’14, there are nearly 4 million mobile banking subscribers representing over 13 percent of the population; in the first quarter of 2014, more than 52 million transactions were carried out with a total value of more than 3200 million Ringgit. Mobile banking refers to banking services that can be accessed using mobile through mobile-enabled websites, SMSes or through the use of specific apps. Mobile banking is the latest evolution of online banking.
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