Until about 15-20 years ago, bank customers usually had to select the office if they wanted to initiate a transaction from the checking account, for example, a transfer. In former times, a slip had to be filled in, which was submitted to the office, so that further processing by the bank could take place. In the age of the Internet, it has not been necessary for at least 15 years to have such paper-based processes carried out. Instead, there is the so-called online banking, which is understood in particular to manage an account over the Internet. In the meantime, customers have access to several ways in which online banking can be carried out in practice, for example from the home PC or even via a mobile device via smartphone.
How does online banking work?
The functionality of online banking is not as different as it was with previous paperwork. Essentially, the difference is that the entire process, such as placing a transfer order, is via the Internet. Of course, this way it is not possible for the customer, for example, to legitimize a transfer order with his signature. On the other hand, the online signature is replaced by the PIN, which allows the customer to log in to their account. On the other hand, every transaction must be confirmed with a so-called TAN, the transaction number. Once this has been done, the bank will check the corresponding order or go through automatic systems to be executed as quickly as possible.
What uses are there in online banking?
By means of online banking, it is not only possible to issue transfer orders or standing orders, for example, from the checking account, but the functions meanwhile go much further. For example, the customer can view his account balance and historical account sales online at any time. If you add the custody account, online banking can even be used to issue securities orders or to provide you with current news or prices. In particular, since online banking can also be used via smartphones or tablets, customers can get access to their respective account from virtually any location and at any time, which is activated for online banking.