Advantages and Disadvantages of Online Banking:Client dependably requests better services, security, and round the clock banking. Banking division are thinking about client needs and request in the principal line of inclination. Besides, attempting to offer and present the requested services by the Bank and changing their offering in view of the necessities of present and potential clients, online banking system have done a great improvement in banking sector of Bangladesh.
The advantages of online banking systems are identified as given as following:? Providing a powerful value adding tool to attract and retain potential customers;? Reducing paper handling procedures high cost;? Eliminating frequency of teller interactions in an increasingly competitive banking environment;? Increasing financial institutions’ ability to retain and expand their online based business;? Providing the best real time banking service through any branch banking channel;? Offering easier and convenient fund transfer through online transaction system;? Reducing the paper work and official formalities in transacting money;? Providing the best security through cyber protection system;? Maintaining the confidentiality of clients’ information in a better way;? Saving the time of the busy clients by making transaction through mobile apps;? Providing 24/7 account and service access to the online registered clients;? Providing convenient online utility bill payment services;? Providing free online account checking service which makes the banking more convenient to the customers staying anywhere;? Performing banking activities without driving down to a bank or waiting in line;? Connecting the customers globally through online transaction system.Although online banking system has been providing many advancements in banking sector of Bangladesh, it has numerous drawbacks that can’t be over sighted. The following disadvantages of online banking system are identified:? Lack of skilled and highly qualified management team to maintain the online banking activities;? Lack of international standard online communication channel;? Lack of appropriate strategic plan to gain and retain local banks’ market share;? Lack of integrated strategic plan and policy between the central bank authority and the banks;? Relatively higher price of online software and higher establishment cost of software installation;? Lack of knowledge and awareness among the customers about the online transaction security;? Involving in different types of financial risks and security risks;? Legal barriers and inadequate policy framework.? Increase the possibility of money laundering in many extent;? Increase the number of online fraudulent through unauthorized access by the hacker.