Online Banking – Currently, the emergence of online banks in Indonesia is growing with a variety of products or services offered, and not a few online banks present various attractive offers to attract the attention of new customers.
The use of online banks or digital banks is indeed the choice of most people in the midst of today’s fast-paced needs.
What is Online Banking?
The terms online bank and digital bank are often interpreted the same, even though they have different meanings. According to the official website of the Indonesia Stock Exchange (IDX), an online bank is a banking activity service that uses the bank’s electronic means to carry out various valid transactions.
In this case, online banking can be interpreted as electronic-based banking transactions. In online banking, there are several services or products offered, such as internet banking, cellphone accounts, mobile banking, and so on.
Meanwhile, according to the Financial Services Authority (OJK) in the Guidelines for the Implementation of Digital Branches by Commercial Banks, it is explained that a digital bank or digital bank is a banking service or activity that uses bank-owned electronic or digital facilities, and/or through customer-owned digital media that is carried out independently..
Digital banking enables customers to obtain information, communicate, register, open accounts, banking transactions, and close accounts, including obtaining other information and transactions outside of banking products.
Online Banking Features and Services
The following are some of the products and services that are generally available at online banks, including:
1. Internet banking
According to the Financial Services Authority (OJK), internet banking is a banking facility that can be enjoyed by bank customers to make transactions via the internet network anytime and anywhere.
With the presence of this online banking service, it is more practical for customers to make transactions because they no longer need to carry and count cash conventionally. This service is also fairly safe because it uses a PIN or secret code.
In addition, the presence of internet banking also facilitates non-financial transactions (balance information, account mutations, etc.) and financial transactions ( savings, transfers between accounts or banks, bill payments, etc.) without having to come to a bank branch office. concerned. Customers only need to use a smartphone with adequate access to make transactions.
In addition, the Indonesia Stock Exchange (IDX) also explained that there are at least a number of features that are usually offered by online banks, particularly in internet banking services, including:
- Account and credit card information that includes balance information, transaction history, to a list of accounts, including checking accounts, deposits, time savings accounts, and others. Customers can also usually see exchange rate information on this service.
- Transfer funds, be it between bank accounts or between other banks.
- Payment, both for paying telephone bills, credit cards, electricity, insurance, to e-commerce.
- E-mail notification for every transaction.
- Video banking
Services at online banks are usually provided by the bank, namely video banking. This service provides customers with a new experience in interacting with the relevant video banking officer virtually. Later the bank officer can serve and/or assist with financial transactions or even complaints related to your banking transactions.
By using this online bank service, you can find information about products and services from the bank, transfer money, pay bills, purchase top-up vouchers, and so on.
2. Mobile banking
The Financial Services Authority (OJK) explained that mobile banking is one of the banking transactions via smartphones, either in the form of an m-banking application or the default mobile operator application.
Just like internet banking, this online banking service is quite practical for customers to use because they don’t have to bother carrying and counting cash when making transactions such as transfers.
The mobile banking service is also quite safe because new customers can access the application after filling in the appropriate access code and PIN or password. That way, customers can more easily make non-financial transactions and financial transactions without having to come to the branch office of the intended bank.
3. EDC machine
Electronic Data Capture, or better known as the abbreviation EDC, is an electronic device or machine that can be used to make cashless payments. EDC machines are issued by banks and can be connected to banking servers.
With the EDC machine, customers do not need to carry cash to pay for something. In addition, customers also do not need to withdraw cash first at an ATM machine. The customer simply swipes or inserts the card into the EDC machine to make payments.
Advantages of Online Banking
It cannot be denied that online banking services make it very easy for you to make various transactions via a smartphone. Apart from this convenience, there are several other advantages of online banking services, including:
With online banking services, customers and banks alike experience more efficient benefits. Customers do not need to go to the bank’s branch office because it is enough to make transactions from a smartphone, transactions can be done anytime and anywhere, of course with an adequate internet network.
That way, you can carry out all kinds of transactions, both financial and non-financial, more effectively and efficiently. The bank also benefits because it can invest funds for technology development.
Most services at online banks apply appropriate access codes and PINs/ passwords so that security is maintained. Make sure you don’t share the access code and PIN with other people. If suddenly the smartphone is lost, you can also directly call the customer service of the bank in question to block online banking services on the smartphone.
There are various attractive features and offers
Usually online banking services present a variety of attractive features and offers for customers. These attractive offers include discounts, cashback, reward points, and so on. That way, customers are also easier and more interested in making practical transactions through online banking.
Disadvantages of Online Banking
- Prone to theft and data interception. As customers and also the bank needs to be aware of cyber crimes by hackers. The crime of hackers in the hope of stealing customer data in e-banking can occur if there is negligence. So, customers are required to comply with all procedures for using internet banking properly so that it is safer. Meanwhile, banks must diligently supervise and maintain banking information technology infrastructure.
- Vulnerable to online crime with various modes such as skimming techniques, phishing, fake gift offers, etc. Don’t be easily tempted by nonsense or tempting advertisements.
- Prone to malware or virus attacks. This is very important to note, you should use a secure data plan or internet connection so that you are not exposed to virus attacks. Do not use free VPN connections and public Wi-Fi because there are lots of malware and viruses. Make sure your gadget has antivirus and antimalware software installed to avoid cracking.
- Unable to access e-banking in remote areas or low internet connection signal. In Indonesia, of course there are some areas that still don’t have a strong internet signal, so this is a weakness of e-banking because you have to be online for transactions.
4 Tips for Safe Transactions with Online Banking
1. Safeguard Personal Data
Do not give UserID and password information to anyone. Also avoid providing confidential personal information such as PINs, token numbers, etc. via telephone or email.
Beware there are many bank crimes by sending fake emails or calling you and pretending to be from the bank. So, don’t give out ATM/Credit card numbers, PINs, OTPs, usernames, passwords, and so on.
If you suddenly get an email saying that your account is blocked or anything suspicious, report it to the bank as soon as possible because this is one of the modes of e-banking fraud.
2. Correctly type Internet Banking URL
Make sure the bank site you visit is an official site, not fake. Check the bank URL at the top of the browser machine page, make sure there is a padlock before the bank site name.
Don’t click links that direct you to open internet banking sites because usually that’s a mode of data theft.
3. Avoid making Internet Banking passwords that are easy to guess
Try to create passwords with various combinations that are hard to guess. Avoid using your name, date of birth, telephone number, vehicle registration number and so on to create a password. Don’t forget to update it regularly, at least change your PIN or password 2-3 times a year.
Not only using a PIN or password that is not easy to guess, you also have to set a password on your smartphone and laptop. This is important to protect the data contained in it from the crimes of irresponsible parties.
4. Monitor Internet Banking Accounts
This is important to do even if you already use a password that is not easy to guess. This is because this is useful for anticipating if there is a change in suspicious e-banking activity. If suddenly you find an unauthorized transaction, immediately inform the bank.
Online Banking Transactions Be Safe
After understanding what internet banking is and its various advantages and disadvantages, you can be more secure and comfortable in making e-banking transactions. Hope it is useful!
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