The internet world changed almost every business that we know to online business. And with finance and banking being one of the largest industries, it was inevitable for banks to be in online business and it was to there advantage – so to speak.

Online banking, sometimes referred to as Internet banking, gives consumers the privilege to conduct financial transactions and even use non-transactional services on a website operated by a retail or virtual bank, credit union, or building society. It is a system that is definitely not perfect and so it has its own advantages and drawbacks.

The biggest issue on online banking is undoubtedly security, because it deals with people’s money. The first thing to do when doing online banking is entering a password. The most popular and less complicated passwords used are the PIN and TAN. A more complicated one is signatures that are stored on a memory medium like a smartcard. Though different in complexities, both means are prone to attacks. The login details like the PIN and TAN can easily be copied and stolen through phishing and pharming. And signatures on the other hand can be attacked by just manipulating the software used to allow fake transactions on the background. Other major concerns in online banking would be the system’s reliability to process transactions and capability to update on a real-time basis. These disadvantages on the other hand, are balanced out by the advantages. The greatest advantage online banking offers is convenience. It is a service that is ready to serve 24/7 and wherever the consumer is in the world. It also offers the ease of managing accounts and transactions especially for people who doesn’t have the time to go to the bank. In the end, the most important thing for a consumer is to know that he’s dealing with a real online banking and not a hoax.