Overview of Online Banking

When the World Wide Web became functional and practically usable, just after 1995, almost everything that people wanted access to, got hoisted onto the online space. Banking too joined the bandwagon. But unlike many other 'not so important' things that went online, with or without a real need, banks going online was a logical progression from the early 'Home Banking' system that had already whet the banking customers' expectations.

Even before 'www' could come into currency, in the 80s, Citibank, Chase and a few others were offering, what was then considered unmatched access to banking services, through their innovative use of numeric keypad and a telephone line. A customer, using the numeric pads, could key in an instruction and the tone, carried over the phone, would tell the bank what was needed. The first usage of the term 'online banking' was, as a matter of fact, with reference to this numeric pad phone-line system.

From there, to where we are now, has been a long evolutionary journey in banking, but the core focus has remained unchanged: greater banking flexibility. Here's a quick appraisal of our online banking experience today and the greater banking flexibility we enjoy:

Anytime anywhere banking: Online banking allows us banking from anywhere at anytime as long as we are connected to the bank's server either through our computers – desktop, laptop or notebook or device – mobile, smartphone or tablet. Anytime, anywhere banking is usually offered 24/7 with the exception of maintenance downtimes, of course!

Cheaper and more effective banking: It is cheaper (and easier) for the user, given that the user does not have to spend time and money going to a branch, and cheaper for the bank because now branches have become optional. Many branches have actually been shut down by banks.

Single-platform access: From paying bills online to sending money to a third party account, just about everything can be done today through online banking and done one after the other via the same platform. An offline experience however, typically allows only one request at a time. Your teller line, for example, is usually different from an address change request line and it would mean having to stand in two different queues for two different service requests. Now, with online banking, one can stop a check payment, set up standing orders, change profile information, make payments, add beneficiaries and do almost everything that one regularly does with an account.

Almost every bank in Malaysia today offers online banking. As a user though one needs to be doubly sure of a few things. While the offerings are by and large the same, a comparison of factors like – the security offered, the flexibility offered, the ease with which service requests can be made – will come in handy while zeroing on a particular online banking offering.