Pros and Cons of E-Banking

E-banking is an electronic payment system that enables customers of a bank or other financial institutions to conduct a range of financial transactions through the financial institution’s website.

It is safe, easy, fast and efficient electronic services that enable the user to access the bank account and to carry out online banking services. The user can transfer funds from one bank to another and pay bills from his or her account without necessarily going to the bank physically.

Pros and Cons of E-Banking

Pros of E-banking

  1. It is environmental friendly

It is environmentally friendly in that it saves the paper that could be used and be disposed of in the environment making the environment unhealthy for human beings.

  1. Saves time

It saves time for the user whereby the user is not required to go the bank for him or her to make the transactions.

  1. Saves money

E-banking has better interest rates hence it saves the users a lot of money as they can only pay a little amount of interest on the amount borrowed.

  1. It is secure

It is secure in that, it is only the user who can access the account online hence it is not easy for other people to hack the account.

  1. It is convenient

It allows people to access the services from any place hence it is convenient for many users if they have an account.

  1. It can be used through the mobile phone

Someone can make transactions through his or her mobile phone hence very reliable means of transaction.

  1. It is easy

Using e-banking is easier in that there are no many processes that are involved before someone uses the services hence anyone can use the service.

  1. Can be done from anywhere

E-banking services can be offered anywhere and this makes it the best way of making transactions as the user can do it from the comfort of his or her home.

  1. No minimum requirements while withdrawing

With E-banking the account is not required to remain with a minimum amount hence the user can withdraw all the money provided can meet to pay the services of the transaction.

  1. They offer a rewards system

The banks offer a reward system to the users whereby they are given cashback.

Cons of E-banking

  1. Customer service

With E-banking, there are minimal services to be offered by the bank hence sometimes the users have to go the bank for them to be provided by the services.

  1. No face-to-face contact

The user does not get in contact with the staff in the bank hence they do not get more information about the accounts.

  1. Difficult to credit score

The user is not scored correctly by the bank and this becomes difficult when the user wants to borrow large sums of money from the bank.

  1. Difficult to keep records

The bank will not be able to keep the records of transactions hence in case of a problem the bank cannot trace how to assist the user of the account.

  1. It depends on technology

The services only depend on technology as it can only work where there is internet or else the transaction will not be possible.

  1. Fraud

There is a possibility of hackers accessing the account information and they can easily tamper with the account making it impossible for the user to access the account.

  1. It needs technology literate

The user of the services needs to be technologically literate so that he or she may get the services from the comfort of his or her house hence those who do not know may find it difficult to use the facility.

  1. No access to cash while banking

The user is not able to access cash while banking the money as he or she will only use the internet to make the transaction hence no access to cash.


E-banking has made life easier for many people as they are only required to have internet and they can make transactions from the comfort of their houses. The drawbacks need to be handled to allow many users to use the service.



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