e-Banking: Pros and cons

e-Banking is an electronic payment system that enables customers of a bank to conduct a range of financial transactions through the bank's website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customer-accessed banking services.
The customer visits the bank's secure website, and enters the online banking facility using the customer ID/PIN number and credentials previously set up. The types of financial transactions which a customer may transact through online banking are determined by the bank, but usually includes obtaining account balances, a list of the recent transactions, electronic bill payments and funds transfers between a customer's or another's accounts. Most banks also enable a customer to download copies of bank statements, which can be printed at the customer's premises. The facility may also enable the customer to order a cheque book, statements, report loss of credit cards, stop payment on a cheque, advise change of address and other routine actions.
There are some advantages on using e-banking both for banks and customers:
* Permanent access to do banking
* Lower transaction costs / general cost reductions
* Access anywhere
*  Less time consuming
* Very safe and secure method
* Helps to transfer the money immediately and accurately
* Security of account
Mobile banking is a service provided by a bank  that allows its customers to conduct financial transactionsremotely using a mobile device. It uses software, usually called an app, provided by the bank for the purpose. Mobile banking is usually available on a 24-hour basis. Banks may put restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted.
Transactions through mobile banking may include obtaining account balances and lists of latest transactions, electronic bill payments, and fund transfers between a customer's or another's accounts. Some apps also enable copies of statements to be downloaded and sometimes printed at the customer's premises.
From the bank's point of view, mobile banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. Mobile banking does not handle transactions involving cash, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits.
Credit Card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus other agreed charges. The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.
Advantages:
Convenience - Credit cards can save time and trouble - no searching for an ATM or keeping cash in-hand.
Record keeping- Credit card statements can help track expenses. Some cards even provide year-end summaries that really help out at tax time.
Low-cost loans- One can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away.
Instant cash- Cash advances are quick and convenient.
Perks- From frequent flier miles to discounts on automobiles, there is a program out there for everyone. Many credit card companies offer incentive programs based on the amount of purchases made.
Build positive credit- Controlled use of a credit card can help establish credit-worthiness -as long as someone stays within his/her means and pay bills on time.
Purchase protection- Most credit card companies will handle disputes for the cardholders.
Balance surfing- Many credit card companies offer low introductory interest rates. These offers allows to move balances to lower-rate cards.
Disadvantages:
Overuse- Revolving credit makes it easy to spend beyond one's means.
High- cost fees-Purchases will suddenly become much more expensive if someone carry a balance or miss a payment.
Unexpected fees- Typically, cardholders pay certain percentage just to get the cash advance; also cash advances usually carry high interest rates.
No free lunch- The interest rates and annual fees associated with credit cards may outweigh the benefits received.
Teaser rates- Low introductory rates may be an attractive option, but they last only for a limited time. When the teaser rate expires, the interest rate charged on the balance may jump dramatically.
The writer is Managing Director & CEO of Meghna Bank Ltd.
Email: md&ceo@meghnabank.com.bd