source

Before I talk about online banking, I will like to briefly discuss banking

Banking

Banking is an institution where financial activities which include: cash, credit, and other financial activities; takes place to meet the demands of customers/consumers.

It is a place where valuables such as money, properties, documents such as birth certificates, land documents, credentials, and will are kept and secured for the period required.

Banking activities provides the required assets needed for families and businesses to invest in the future and is one of the driving force to the economical growth of a locality or a community.

The services provided by a bank are used as means of protecting an individual's money, create access to borrow, and be able to make savings. With the aid of banking, one can make investments without necessarily saving up to the required amount but can obtain loans from banks to establish themselves, enhance their future and make avenues for economic expansion.

Types of Banking

There are different types of banking systems; these are classified based on the type of financial activities carried out in them. The following listed below are some banking systems:

• Central banking
• Commercial banking
• Community banking
• Savings and loan banking
• Investment banking
• Merchant banking
• Sharia banking
• Online / Internet banking

Of all these banking systems listed above, online/internet banking will be explicitly discussed.

Online/Internet Banking

Online banking also known as internet banking is a type of banking system which provides its services through the world wide web (www). This banking system can also be called e-banking.

Online banking is a means whereby one can access his bank and other account information through the internet without necessarily visiting the bank directly or in person. Online banking makes it easy and possible to use the computer or smartphone to access the following:

• View account balance

• Search financial transactions

• Download and save monthly statements

• Transfer money between accounts of same and different financial institution

• Pay bills

• Create a new account

• Loan application

How Online Banking Works

Online banking works with the same principle as traditional banking only that the whole process is handled through internet services. That includes the opening of an account to managing it.
These processes include:

• Opening an account
• Making deposit
• Handling customer issues

Opening an Account
Instead of the process of going to the bank branch for a paper application in the opening of an account, it can easily be done via the internet.
The benefit of this process is that it can be done from the comfort of your home within a short period.
Some of the challenges that one can face with opening an account via the online process are lack of reliable internet connection, lack of easy access to an affordable computer or mobile device. The creation of a password may be required to be able to access your account.

Making Deposits
Before the invention of online banking, making deposits involved obtaining a deposit slip from a bank branch, then wait for some time for it to be processed and signed by an employee. All these are some of the challenges of the traditional banking system but with the invention of online banking; the processes and stress undergone before a deposit can be made are abated as one can easily make such a deposit at the comfort of his home.

Also, some years ago, getting a check entails going to the bank branch to have it signed before an employee; then wait for several days for the deposited check to be cleared in your account.
But now, all that can be avoided by the aid of online banking as money transfers can be made using a mobile device then upload to your account depending on your type of bank.

Handling Customer Issues
In the banking system, customer service is very important as it deals with the customer's relationship with the bank. Most times this possess as a challenge because of individual differences. But with the introduction of online banking, makes it easier to relate with customers as you need not meet them face-to-face. This is easier and faster and also provides 24/7 customer service which makes it possible for customers to access their accounts any time at their convenience but can encounter the problem of communication bridge as a result of a misconception of ideas. This happens because of the absence of the opportunity of meeting face-to-face with the employee which can create room for proper self-expression.
Also, the problem of inadequate network service is another issue, especially in under-developing countries.

Ways To Start Accessing Online Banking

To start using an online banking system; the following are the steps you need to take:

• Open A Bank Account
  To be able to make use of the online banking system; you need to first open up an account. To open an account, you need to go to a local bank branch of your choice to open either savings or current account
  Some banks don't have local branches but depend solely on an online basis. In such a situation, you have to locate their website and follow the steps that will be given to you to create an account. You have to know the term and conditions applicable to your choice of a bank with other banks to choose the bank that offers good customer service.

• Open An Online Account

To start accessing and managing your account via online, you need to open an online account.
To do this, you have to log into your bank website; follow the instructions such as email address, password, account number, etc, and sign in. You can contact customer service if you encountered any problem with the process.

• Utilizing Some Features On The Page

After opening your online account, you need to know how you can use the portal to access your online account. How would you do that? Is to simply check around the portal and also click on some features on the portal to know and explore their usefulness. Find out where the logout option is, so you can be able to securely log out of your account after usage.
You can also contact your customer service if you need help as they are always there to assist you.
All these will help you to successfully run your online account.

Conclusion

The world has gone digital and so do everything within it including the banking system.
Online banking has made it easy for the banking process to be done in a stress-free environment and at your comfort and convenience.
If so is the case, this has to be encouraged as a means of securing your finances.

Special thanks to @xkool24 and @hisgeneral