The technology behind online banking: Pros and Cons

The technology behind online banking: Pros and Cons

Today, with the Internet and digital technology, we can access many online banking services both on websites and in applications. Some of these services include paying bills, transferring funds, consulting, and viewing account statements, which is done through online banking.

Banks and financial institutions also deliver their latest products and services over the Internet. Internet banking, or online banking, for example, is carried out through a computer system or similar devices that can connect to the banking website.

Currently, you can also use Internet Mobile Banking on your mobile phones using a Wi-Fi or 4G/5G connection. Therefore, it is essential to have good internet providers to provide greater security to transactions.

You no longer need to visit the bank in person to deposit or withdraw money, request a card statement, account statement, withdraw a 2-way ticket or interrupt a recurring payment.

You can accomplish all these tasks and more using the online services offered by banks. You can also track transactions and your account balance in real-time. Learn more about this technology that is changing the way you handle money.

What is Online Banking?

In short, it is the online banking environment. That is, the way you access your account online. Both digital and traditional banks have this service.

It is for you to carry out online banking operations from your computer, without having to go to the branch.

That way, it connects you with the bank's operating system. So, you can see your balance, your credit card bill, loan options… all through the bank's website.

You can also make transfers, payment of slips and invoices, and much more from your Online Banking.

What is possible to do in Online Banking?

Online banking and mobile banking have numerous features to facilitate the financial operations of their users, who previously had to go to a bank branch to access the simplest services.

Check out some of the features you can access when using both mobile banking and Online banking!


One of the most advantageous services of this service is the possibility of making payment whenever you want and quickly. In the payments section, you can use the barcode to carry out the operation, make the payment through debit, credit card, among others.

This feature allows you to pay taxes, duties, social security contributions, and many other bills. Payment via Online banking also allows the registration of automatic debit, which can be enabled to settle water, electricity, internet bills, among others.

In this same tab, it is possible to check the receipts of payments already made, which you can download in PDF, print them or send them by e-mail.

Transfers (including International)

Transfers are also other services available through Online banking, which can be made either by cell phone or by computer for accounts that are previously registered as favored users or for new accounts.

It is possible to carry out the transaction between accounts of the same institution or for other banks, with the possibility of making the transaction immediately or scheduling it for a future date.

Today, this feature has become even better with the launch of instant transactions, which allow for real-time transfers 7 days a week, 24 hours a day.

Not to mention that these transactions can also be made outside the country in a simple, fast way and without paying extra fees.

Balance and statement inquiry

This is one of the most used features by users. You can check your balance and statement whenever you want, either through the app or through your bank's website.

This feature is usually available on your app's homepage, and the balance automatically appears on the screen with options for viewing future releases and also the latest transactions.

Pros of Online banking

When using Online banking you will find several advantages. From the convenience of not having to go to a branch to the security of accessing the account. Check out the benefits of using this system:

Help with financial management

Online banking systems are designed in such a way that all the information you need is saved. An example is the accounts you usually make transfers to every month.

In addition, banks support financial management programs. This facilitates the financial organization of expenses into categories, such as payments, cash inflows, among others.

You can even save payment receipts, deposits, and transfers in PDF and organize them in folders, both on your computer and on your mobile phone.

You save time and money

This is one of the biggest advantages that Online banking offers customers. That's because it is not necessary to waste time and money, with gas and bus tickets, to go to an agency.

And, because you don't have to leave the house, the whole process is cheaper. In addition, you can access your account anywhere, anytime, any day of the week.

If for the individual this system saves time and money, for the entrepreneur it means productivity. This is because it is possible to schedule payments for bills and transfers.

In addition to organizing cash flow, employee payments, among others.

The whole process is safe

Many people still do not use Online banking for fear of having their personal and banking information stolen by third parties. And this is considered normal since there are cyber crimes.

The risk does exist, but banks are increasingly taking security measures to ensure that no information is leaked.

Cons of Online Banking

By joining the use of Online banking, in addition to the advantages, you are also faced with the disadvantages. These must be taken into account to know whether or not it is worth using this system.


Internet banks are required to abide by the same laws and regulations as a traditional bank, and the FDIC guarantees bank accounts.

However, having electronic access to your accounts always brings some additional risk to your data, regardless of whether you are using a traditional bank or an internet bank.

Dispute Resolution

When using an internet bank account, the account owner may not have face-to-face interaction with a bank employee if the bank does not have a physical store.

This can make dispute resolution more difficult as the account holder will have to make a phone call and possibly wait on hold or be forced to send an email.

Inconvenience for deposits

It may seem counter-intuitive that a bank, whose objective is to attract assets, makes it difficult for customers to make deposits, but this may be true for some online banks.

With online banking, you can't just drop off cash or a check at a local branch. Some online banks, such as Ally Bank, do not accept cash deposits.

Using Ally Bank as an example, to make a deposit you will need to mail a check, transfer money from another bank or account, or use the bank's electronic check deposit service.

Inconvenience for withdrawals

Since they don't have their bank machines, online banks rely on customers to use one or more ATM networks, such as AllPoint and Cirrus.

While these systems provide access to tens of thousands of machines across the country - even across the world - it's worth checking out the machines available near where you live and work.

Time discrepancies

Email customer service processes are less timely than trips to the bank in many cases. However, some banks offer live chat services.

In addition, delays in deposit and withdrawal transactions appearing on your account make it difficult to obtain real-time balance information.

What are the risks when using online banking?

All online services can receive some sort of hacker attack at some point, even with security protocols. Check out the risks that online banking offers in this regard:


If you have an online bank account, you may be a victim of phishing. Phishing usually involves tricking someone into clicking a link in an email message.

The link usually downloads software to a computer that can be used to collect sensitive information such as usernames and passwords.

Identity theft

Even if hackers don't steal your account, you can still have your identity stolen. This includes personally identifiable information and personal data. This information can be used to open new accounts or try to hack into your active accounts.


While Pharming is more difficult for hackers, it is more common than you might think. Pharming occurs when hackers manage to hijack a bank's URL.

When you try to access your bank's website, you are redirected to a fake website that looks like the real website but serves to steal your banking information and credentials.


Online Banking is a tool that makes our lives easier (and a lot). Without it, we would waste a lot of time going to banks to carry out any financial operation.

No need to be afraid to access your account from your computer. You just need to take the necessary precautions to prevent hackers from invading your device.

Now that you know everything about it, just register on your bank's website and use it! Also, it is important to have a good connection, such as Centurylink internet, which is secure and helps you with the process.