Internet Banks

Online banking uses computer technology to relieve the consumer of the paper based and time consuming aspects of traditional banking, which allows people to manage their finances efficiently and quickly. Sometime online banking is called electronic banking, Internet banking or home banking. With the help of the internet, banks have started utilizing powerful computer networks for automating large numbers of daily transactions, which minimizes the time consuming manual paper work and giving access to many different banking services to its clients instantly, on demand, at home or at work.

With the help online banking the banks have the power to attract the new and potential customers by giving them an opportunity to eradicate time consuming teller interactions and has therefore become a significant competitive weapon in an increasingly over supplied banking environment. Online banking allows day to day transactions over the Internet through a secure bank website. With the help of online banking one can have access to money and banking functions anytime and anywhere, where there is internet access.

One advantage of these online banks is that they remain available all the time unlike the traditional banks, which are open only within office hours. If the consumer is out of town and he needs money, then he can log on quickly to his banks website and take care of the required business, such as paying a pressing utility bill. Also the individual can manage and access all of the aspects of bank accounts like CDs, IRAs securities from one protected website. Increasingly banks are using online access to bundle access to stock brokerage and other financial services.

The speed employed by the online banks for executing and confirming the transactions is faster than the traditional speed of ATM processing. Also various features are included in online bank websites. These features such as stock quotes, account aggregation, programs for managing portfolio and rate alerts assist the customers in organizing all their assets easily and efficiently. This technology has seen a tremendous increment in usage, as more and more big national banks and various other banks in smaller regions, have started some form of online banking to provide convenience to their customers. In fact it is rare today to find a significant bank without a comprehensive online presence.

The online banking mechanism is fast and relatively secure compared to the traditional banks operations because of automation of the manual aspects of banking practice, which is time consuming. It is interesting to note that often a modern internet banking facility is built as a front end to an older legacy banking system. Banks are loath to change something that they know works, when millions of dollars flow through the system.

Apart from various benefits, there are also some downfalls of online banking as online crime is increasing day by day. A few computer glitches which have revealed individuals personal details have been occurring, sometimes at third party processors. Therefore one must check the security of the website, while conducting business online as any leak of passwords to the wrong person may have adverse
effects. Also one should make sure to log out after finishing the session. The computers security system should be sound enough to maintain privacy of personal information. But still, we can say that Internet banking is really a boom to the customers in accessing and managing their account effectively, anytime and almost anywhere.

Finding information online seems like the proverbial search for the needle in the haystack – with so many sites and adverts vying for attention just thinking about searching for an internet bank is enough to bring on a headache. However, it might well be worth the effort – out of the five best-paying current accounts today, four are provided by internet banks. With a difference of two or three percent, the benefits could be substantial.

Enter ‘online banking’ into your search browser, and you’ll pull up several independent sites comparing different banks and accounts. While the special offers can change day to day, there are a few banks that have been performing consistently well – the big three being Cahoot, Egg and Smile. Cahoot is the online arm of Abbey National, and the Co-operative Group runs Smile, but both currently offer better deals than their high street counterparts. Intelligent Finance is also a contender. Shop around to find what suits you best – whether it’s a low rate loan or a high performance current account, the right choice will depend on your individual needs and situation.

Take into account things like customer service as well as the terms offered – it’s important that you can contact your bank easily when you need to, and that dealings with them are not an unpleasant ordeal. Even if you conduct most of your business online, there are still likely to be occasions when you need to speak to a human being, and friendly, well-informed staff can make a vast difference to your banking experience. First Direct is now planning to introduce a ‘virtual’ bank clerk to make online banking more customer friendly.

Ease of use is another factor – a bank with a website that is easy to navigate will help you plan your finances with the least amount of hassle. Online banking has now come a long way from the days you could only view your account online – you can now pay bills, set up direct debits and transfer money between accounts at the click of your mouse. Egg have recently introduced a service called ‘Egg Pay’ that lets you securely send money to friends and family via email, and in future we can expect ‘account aggregation’ – an overview of all your financial dealings on one web site that will help make your transactions more efficient.

‘Moneywise’ and ‘Which’ magazines are good sources of information to compare banks with – check out their websites.

Internet banking is becoming more popular with each passing day. Fewer and fewer people are ever going to their banks, preferring instead to use the Internet to manage their money, check how much they have and pay bills. You can even pay in cheques by post, removing the reason most people go to banks. More and more banks are being established as ‘Internet banks’, working entirely online with no physical branches and customer service by email and telephone only, and many people report good experiences with these banks.

So why has Internet banking taken off in such a big way? Most of the answer is to do with the adoption of broadband. Back in the days of dial-up, few people wanted to their banking on the Internet, feeling that if they had to dial then it was easier to just call the bank and not have to go through so many security checks. Since broadband came on the scene, though, more and more people have been able to check their bank account any time, both at home and at work, and have started to find the Internet to be the most convenient way of dealing with their bank account.

As Internet banking saves the banks money on branches and staff, they have been keen to get as many people signed up for it as possible, sending out regular letters and trying to get people to sign up for it in the branch. They see it as a win-win situation: they make more profits, and the customers are happier at having quicker access to their accounts. Internet banks, even if they have few customers, are very profitable indeed, which allows them to offer higher interest rates to their customers than high street banks, enticing gradually more people to move away from ‘real world’ banking altogether.

Why should you get an Internet bank account? The whole concept of a bank that exists primarily on the Internet is that many of the costs and overhead incurred by traditional banks are unnecessary and if they were eliminated, the bank could pay higher interest rates on savings accounts. They could also offer high yield checking accounts, something which is almost impossible to find at a traditional bank.

The largest Internet bank is ING Direct, a subsidiary of the huge Netherlands based financial conglomerate ING. ING Direct has been experiencing impressive growth since their spin off from ING in 2000. They now boast more than 15 million customers world wide, including 6.5 million in the US. They're not alone. Other leaders in the space are HSBC Direct, WTDirect Emigrant Direct, and E*Trade Bank.

These banks offer advantages that traditional banks just cannot match, such as interest rates on savings accounts that are 3 - 8 times what traditional banks are paying. That's actually the primary reason people are drawn to Internet-only banks, and why you should consider one. Other advantages are unique financial services and products, such as ING Direct's 5 year mortgages, and checking accounts that actually pay a healthy interest rate. While many traditional banks advertise free checking accounts, the Internet banks take that one better, actually paying their depositors to keep money in their checking accounts.

Other reasons to get an Internet bank account are the ability to easily pay bills and see all aspects of your account from any computer with Internet access. When these features were first offered they truly set the Internet banks apart from traditional banks, who offered little or no ability to do these things. Since that time, many traditional banks have added online banking and closed the gap in this area. Now the main advantage of an Internet bank account is the very high interest rates you can earn on your money, and really, do you need another reason to look at opening an Internet bank account? Remember, Internet banks will pay you interest on both savings and checking accounts, an advantage that leaves most traditional banks in the dust.

Internet banks take every step necessary to ensure that only you and authorized people have access to your account. Strict security measures have been applied to ensure your security. Here are some of them.

Account information. Before you can engage in any transaction with Internet banking, you need to create a unique profile. You need to answer extensive questions, detail your personal information, and create your own password and PIN number. All your security codes, passwords, PIN, and reference numbers are encrypted to ensure their safety.

Session cancellation. If you become idle for a certain period of time while logged on to your Internet bank account, the session gets automatically cancelled. You would have to re-enter the system to execute any transactions.

Lockout. Whenever you enter your password or PIN incorrectly for three consecutive times, the password will automatically be locked and you will need to request that your password be reset. Banks also recommend that you use to the virtual keyboard provided whenever you enter a password or a PIN to prevent the possibility of your keystrokes being sent to any unscrupulous individual.

Additional authentication features. Certain transactions (such as adding a new beneficiary) require you to undergo additional authentication. The additional authorization code is actually assigned and sent to you by the bank. You need to supply this reference number in order to proceed with the transaction. If you do not enter the reference number, your transaction is aborted.

Digital certificates. These are issued to ensure the authenticity of the website you are dealing with. To personally verify if there is a certificate sent to you or if the certificate is really from you Internet bank, you can check the list of digital certificates that are in your computer.

The main purpose that banks have been serving since their inception is keeping our money safe for us. While keeping our money safe, they also let us earn a certain amount of interest on the money deposited with them. Traditional banks have been doing this, and internet banks continue the same function. The only difference is in the way the transactions are made.

Online banking has been around for quite a few years. In fact, it was introduced in the 1980s and has come a long way since then. The last decade has seen a profuse growth in internet banking transactions. Several pieces of legislation have also been introduced in this area.

Though it began in the 1980s, it was only in the mid nineties that internet banking really caught on. What attracts customers to internet banking is the round the clock availability and ease of transactions. Studies estimate that internet banking still has a long way to go. There are several banks that have customers who prefer banking in the traditional ways. Statistics released by the FDIC show that only 40% of the banks in the U.S. offer internet banking facilities worth mentioning. All the others may have an online presence but do not have enough online transactions to justify their presence on the internet.

Some customers have been known to turn to internet banking due to dissatisfaction with standard procedures and practices. The total absence of human interaction appeals to some people. Some customers turn to internet banking facilities for security reasons. This is mainly because of customers being assured of banks' ability to keep transactions safe and secured.

Most online transactions are made using the Internet Explorer interface. The Internet Explorer has been around for more than ten years now.

One of the greatest things that information technology has given the world is convenience. You can get almost any kind of information with the click of a mouse; you can transact many kinds of businesses in your pajamas, right in your living room anytime of the day.

A few years ago, it would have been impossible to imagine that traditional institutions like banks would follow the leadoff other companies and utilize the website as a major venue for transacting business. But the unmistakable advantages of Internet banking have convinced them to go high-tech. This trend has also seen the rise of a new breed of bankers: online financial organizations.

What You Should Know

An Internet bank functions much the same way as a traditional bank. It allows you to deposit your money and earn interest. You can withdraw, invest, and pay your bills through the bank as well. But with Internet banks, you usually get a higher annual percentage yield (APY).

The difference is derived from the savings a bank gets from doing away with overhead costs that a traditional bank has to worry about like maintaining a building at prime realty spots; an Internet bank does not have to have an office or branch you can visit to transact your banking activities. All the bank has to do is maintain a website you can access anytime, anywhere. This lower cost of operations ideally lets the Internet bank increase your savings interest rate.

Guide to Internet Banking

Before choosing the Internet bank where you will put your money, you have to have a clear set of priorities or requirements. For example, you have to decide which is more important, higher APY or high convenience when it comes to setting multiple accounts and investments through the bank. Some people need to have bank that can help them with moving money back and forth from one bank account to another without any hassle. Others prefer convenience in paying bills or purchasing products online using their bank savings. Still, many put excellent customer service at the top of the list.

You may have to be clear with yourself what kind of online banking experience you would like to get. But above all these preparations, you must remember to always check with the Federal Deposit Insurance Corporation (FDIC) to determine the legitimacy and credibility of the banking institution you trust with your money.

Take your online banking experience to the next level and earn more for your savings. Try offshore Internet banking. It is perfectly legal and returns a high yield for your deposits.

Offshore Banking

There are a number of individuals and businesses that utilize offshore banks to manage their financial resources. You may wonder why they have to get their dollars out of the country for banking purposes when they can get the same services at home. One of the best-kept business strategies around is to put money in countries that offer tax shields for foreign deposits. These countries include Antigua, St. Vincent, and others in the Caribbean.

Offshore banking is convenient for businesses as it offers secure and stable economies. Depositors are assured that their money is safe and that they can withdraw and transfer it anywhere at anytime. Normally, you need a third party to arrange for your offshore banking needs. The agency walks you through the application and the preparation of the necessary papers to get an account with an offshore bank. But with online offshore banking, you can get direct access to the bank itself. There is no need for you to fly in to settle anything. Everything is facilitated through online transactions.

Once you have an account, you can start with your banking: manage your savings and current accounts, formulate investment plans like time deposits and foreign exchange or forex transactions, and facilitate money transfers, among others - all of these services from the comfort of your own home or office.

Before you proceed though and get an offshore bank account, check the bank's credibility and licenses. You must choose a bank with a great track record for customer relations. Beware of frauds and false advertisements. Or better yet, consult with an expert financial and investment adviser who can guide you through the process and explain to you the details and nuances of offshore banking.

Internet Only Bank Advantages

Most people are familiar with Internet banking through their local branch office. Most traditional banks offer some form of online or Internet banking services. Fortunately you have another choice. You can sign up for an Internet only bank. Many people are choosing Internet only services because they are convenient, offer free bill paying online and usually offer far more free services than traditional banks do. Most for example offer free checking that is actually free (no hidden fees or conditions).

Most banks are able to pass cost savings onto customers when they operate in a virtual environment. Since the bank itself when operating online incurs fewer fees, most banks charge customers lower banking service fees. Other advantages of Internet only banking include:

- 24- Hour dedicated service and access to your account information.

- Unlimited check writing and use capability.

- VISA/ATM card capability.

- Possible high interest checking account availability.

Disadvantages of Internet Only Banks

There are some drawbacks of using an Internet only bank. For one you will have to pay an ATM fee since Internet banks won't have a branch ATM you can use near your home. But keep in mind that almost all traditional banks also charge some form of ATM fee. In most cases you will also have to mail in deposits, unless you set up direct deposit. In other cases you may have to put in check requests several days before payments are due, which some may find tedious.

Fortunately the offerings vary from bank to bank. Your best bet is to shop around for a service that will offer you all the advantages of a traditional bank with more conveniences.

There is something happening within the banking industry. It is nothing new, but definitely something revolutionary. Banking is now embracing the Internet, making inter-bank operations substantially more efficient. The Internet has brought the banks closer to the consumers, both locally and globally.

As a consumer, you can now check your balance, transfer funds from one account to another, pay your bills, check for other bank services - anytime and anywhere. You can access e-commerce services that allow you to purchase your groceries and shop online conveniently without the hassles of elbowing your way through crowded malls or standing in the line for what seems like a lifetime. You can do almost anything with international Internet banks, short of getting the physical cash.

Going global

Internet banks have continued to focus on the future and continue to expand globally. Now, you can have direct access to your bank even if you are out of the country. Or you can work through other banks that are associated with your bank.

It used to be that the Internet was just a means to look at your bank information. Now you can do almost anything and everything commerce-related.

International Internet banks make sure you have a pleasant time using their sites. They provide you with comprehensive interfaces so that you do not need to spend hours trying to figure out what you need to do. Applications of products are broken down into simple steps.

International Internet banks setup secure and reliable infrastructures that ensure you of availability anytime you need it. The functionality supersedes time differences, so no matter what time it is in your location, you can gain access to your account. In the event that you have troubles, they provide 24/7 support.

Banking is a major industry in Canada. It plays a key role in the country's financial system and economic growth. In fact, banks account for more than 70 percent of the assets of the financial services sector of the country. Over 90 percent of which is from the country's six giant domestic banks. As of 2002, the banking industry was composed of 14 domestic banks, 20 foreign bank branches and 33 foreign bank subsidiaries. Collectively, these institutions managed more than $1.7 trillion in assets.

The financial world is growing rapidly due to its unstoppable technological development. Technology tremendously alters the landscape of the banking industries across the globe. Canada is not an exception. As new banks emerge and penetrate the market, Canadian banks face increased competition from other financial services giants and new foreign entrants. Thus, as international Internet banks mushroom left and right, Canadian banks are setting online branches, allowing their clients to make transactions over the Internet.

Many of Canada's major banks made considerable investments in technology to address these challenges. They now provide innovative products and services that fulfill customer demands, intensifying their competitiveness. Through online banking, they are able to expand their customer base and break national borders. Today, Canada's largest banks offer services online. The Bank of Montreal, the Canadian Imperial Bank of Commerce, the TD Bank, the Royal Bank of Canada and many others have launched their own websites that their clients can use to conduct transactions easily and efficiently. These banks also make sure that they are not only informative and helpful, but also secure. Competition is stiff, but online banking has broadened the horizons for Canadian banks. They are now extending their services to the United States, Europe and Asia. Canada is also the birthplace of many new online banks such as the Bank West.

If you want to know more about Canada's leading Internet banks, you have come to the right place. This site contains a collection of their profiles, complete with their history and services being offered.

Internet banks, no matter what size, guarantee one thing: accessibility. You can have access to your Internet bank anytime and anywhere as long as you have an Internet connection. You can transfer funds from one account to another, pay your bills, and view your bank transactions and balances whenever you want. Some Internet banks even hook up to vendor sites so that you can purchase your groceries and shop for a new pair of shoes.

Large versus small

Looking for an Internet bank that you think would suit you? Are you unsure if you want to go with the big banks or the small banks? Are you afraid of the instabilities of smaller banks? Or do larger banks intimidate you? You should choose a bank that can address your requirements and that you feel comfortable with. Here's a comparison so you can make an informed decision.

Smaller banks tend to offer a narrower ranger of online services compared to their larger counterparts. With a smaller pool of funds, smaller Internet banks do not have the flexibility to offer high interest rates. But the opening and maintaining balance required by these banks are lower, too, so it is much easier to open an account with them. If you only need basic Internet banking services such as local fund transfers, deposits, crediting, etc., then these banks may be sufficient.

Large banks, on the other hand, can compensate for many of the shortcomings that their smaller constituents cannot fulfill. Interest rates continue to rise whenever the amount of the transaction rises. Larger banks have a farther reach, allowing them to have more associates worldwide.

The infrastructures of larger Internet banks are also substantially different. Aside from accessing your account, you can also gain access to your accounts via SMS using your GSM handy phones. You can also send instructions to the bank through this technology. Larger banks tend to have more elaborate security systems to ensure the safety of your money.

Americans love everything to be quick and easy. That's not a surprise because people really need to cope with the fast-paced world. Times have changed and today, every second counts and every dollar matters. It is now very difficult to find time to go to the bank, fall in line for what seems like a lifetime and wait for the teller to tell you that your transaction has been successfully made. This is exactly why online banking became a hit in the United States. It is easy, fast, efficient and above all, convenient.

Americans are trying to leave the traditional brick-and-mortar banks for Internet banks. Why not? If you can do business and make transactions in the comfort of your home or at the office, why would you physically go to a bank? Indeed, after almost a decade of creating, building and enhancing web-based capabilities, online banking in the US is enjoying tremendous popularity among a large base of customers within and beyond the country's borders. In fact, according to the Pew Internet and American Life Project released in 2004, approximately 53 million Americans make banking transactions online. That's one in every four adults.

As one adage goes, however, every opportunity comes with threats. Many Internet users are still apprehensive to trust web-based financial institutions in terms of security. True enough, there have been conspicuous reports of identity theft, phishing scams and other fraudulent acts. However, one survey reveals that only 40 percent of Americans with bank accounts do not use online services. We can see how much Americans enjoy online banking just by looking at the number of Internet banks mushrooming left and right.

Many of American Internet banks are online subsidiaries of a much bigger standard bank. For example, one of the most successful is the online arm of Wells Fargo, a traditional banking giant. Other excellent examples are Citibank and the Bank of America. Some are newly founded full online banking institutions such as the Bank of Internet, Century Bank Direct, UmbrellaBank.com and VirtualBank.

How Internet Banking Works

Internet banking works much like traditional banking. The primary difference is you are accessing your account and information, making payments and reconciling statements using your computer rather than paper or the phone to complete transactions. Instead of going down to your local branch office when you bank online you can accomplish multiple tasks at once with the click of a button.

Online banking is rapidly becoming more and more popular as consumers recognize the advantages online banking has to offer. For one most banks charge fewer fees if you take advantage of their online banking services. You can also stop receiving paper statements if you like in many cases and conduct 95% of your business over the Web when you take advantage of Internet banking.

What Internet Banks Do

What to Internet Banks do? The same things traditional banks do. They hold onto our money and lend it out to others respectively. The manage loans and help us keep track of our finances. Chances are if you own a bank account at a traditional bank they offer some type of Internet banking or online services. The next time you stop into your branch office you should ask them about online banking. You may find once you start you have no desire to go back to traditional banking.

For those that have a hard time keeping track of paper statements, Internet banking is a life saver. Internet banking is also advantageous for frequent travelers that need to keep a close eye on their finances from abroad.