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Virtual banking, also known as cyberbanking, e-banking, home banking or online banking, includes provision of, and access to, various banking activities conducted virtually (from the road, external businesses or homes) rather than at a physical bank. Virtual banking allows customers to secure loans, pay utility bills, make deposits and check their accounts from remote locations.
Types of Virtual Banking
According to Robert E. Grosse in the book “The Future of Global Financial Service,†there are two basic models of virtual banking systems. The first is the electronic replacement of existing bank services by the internet or telephone; the second involves offering new services that were previously not offered in virtual form. Some types of virtual banks have no physical infrastructure at all and exist only over cyberspace.
Advantages
Virtual banking systems have numerous advantages over traditional brick-and-mortar banks. Customers have access to instantaneous service provision and lower transaction and account maintenance costs without having to physically visit a bank. Virtual banks are safe and install high-end firewall and data encryption software that ensure the integrity of customer data. Users are assigned individual PINs (personal identification numbers) that allow them to access their online accounts. Most online banks log off customers automatically after a few minutes of inactivity.
Disadvantages
Virtual banking systems have some disadvantages for both the banks and customers. Initial setup costs for starting a virtual banking system can be high. New users may initially find banking sites difficult to navigate and use. Most virtual banking systems cannot be accessed without the internet, and users may be required to invest in high-speed broadband for quicker, reliable access. Technological hitches can cause virtual banks to go down--an inconvenience.
While virtual banks give customers numerous advantages in terms of bill payments and account information, at the end of the day, customers still need to visit ATMs to withdraw cash.
Adele O'Hara
Wiki User
∙ 11y agoVirtual banking, also known as cyberbanking, e-banking, home banking or online banking, includes provision of, and access to, various banking activities conducted virtually (from the road, external businesses or homes) rather than at a physical bank. Virtual banking allows customers to secure loans, pay utility bills, make deposits and check their accounts from remote locations.
Types of Virtual Banking
According to Robert E. Grosse in the book “The Future of Global Financial Service,†there are two basic models of virtual banking systems. The first is the electronic replacement of existing bank services by the Internet or telephone; the second involves offering new services that were previously not offered in virtual form. Some types of virtual banks have no physical infrastructure at all and exist only over cyberspace.
Advantages
Virtual banking systems have numerous advantages over traditional brick-and-mortar banks. Customers have access to instantaneous service provision and lower transaction and account maintenance costs without having to physically visit a bank. Virtual banks are safe and install high-end firewall and data encryption software that ensure the integrity of customer data. Users are assigned individual PINs (personal identification numbers) that allow them to access their online accounts. Most online banks log off customers automatically after a few minutes of inactivity.
Disadvantages
Virtual banking systems have some disadvantages for both the banks and customers. Initial setup costs for starting a virtual banking system can be high. New users may initially find banking sites difficult to navigate and use. Most virtual banking systems cannot be accessed without the Internet, and users may be required to invest in high-speed broadband for quicker, reliable access. Technological hitches can cause virtual banks to go down--an inconvenience.
While virtual banks give customers numerous advantages in terms of bill payments and account information, at the end of the day, customers still need to visit ATMs to withdraw cash.
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The Benefits Of A Virtual Bank Account?
There are many banking options available to consumers today, but one option that is often overlooked is the virtual bank account. Virtual bank accounts are based on the internet and these online banking institutions follow many of the same rules that govern traditional banking institutions. There are a number of benefits associated with using a virtual bank account for transactions and these benefits are the reason why virtual bank accounts are becoming more popular every year. Virtual bank accounts are very similar to traditional bank accounts. Deposits can be made into the account, money can be withdrawn from the account, and debit cards can be used to access the account. Virtual banks will also have customer service representatives that customers can contact by phone to handle any account issues that may arise. The biggest difference between a virtual bank and a traditional one is that virtual banks do not have physical bank branches. One of the biggest benefits to a virtual bank account is the ability to send money electronically to anyone in the blink of an eye. If a family member in another state has a financial emergency, money can be sent to them immediately without the sender ever having to leave their home. The money can be withdrawn at any ATM machine using a debit card issued by the virtual bank. Another benefit associated with a virtual bank is the ability to purchase items online without revealing a bank account number or credit card number to the seller. These online transactions are much more secure than typing the credit card number into multiple websites where it may be stolen by hackers mining information. The only thing that is displayed to the seller is the email address for the payment account. This email address is typically given to online merchants during the payment process so that the buyer can receive the receipt for their purchase, so no further information about the virtual bank account is disclosed. Virtual bank accounts are designed to be as user friendly as possible while also remaining secure. The website of the virtual bank will have guides that will answer almost any question that a person may have about how to operate their account and a live customer service number that account holders can call for situations that need resolved quickly. There are many benefits associated with virtual bank accounts and many people choose to use them as an addition to their traditional bank accounts.
What are some ways to bank online?
You can you PNC virtual wallet, Bank of America Checking, and Orchard Bank Mastercard. All three of these offer online banking, a convenient way to bank.
Using a Virtual Bank Account?
A virtual bank account is a bank account that essentially has only an electronic, or online, presence. Virtual banks are separated from typical online banking provided by most institutions in that all transactions with the company are electronic, these banks rarely have any significant physical presence. Using a virtual bank has a number of benefits and drawbacks from using the more traditional banking services. Opening a virtual bank account is usually the least electronic part of the process. The initial account opening often entails a fair amount of back-and-forth faxing or paper mailing between the individual interested in opening an account and the virtual banking company. However, once the account is open, account holders have the option to manage their finances electronically, or more specifically, through internet banking. Holding a virtual bank account has a few significant advantages over traditional bank accounts. Firstly, a virtual bank account can be very convenient. Virtual banking companies not only offer their full services to account holders anywhere, and any time, that they can reach the internet, but often feature services such as online bill pay to not only make paying bills easier but to also cut down on the costs of using mailing services. It is also important to note that holders of virtual bank accounts need not consider the limitations of their bank's hours of operation. Another very advantageous aspect of virtual banking is the trickle-down effect of the funds saved in operating costs due to the virtual bank's lack of a physical presence. There are some drawbacks to taking part in virtual banking as well. Internet banking is very secure, however, the slim, but ever-present possibility of security breaches combined with general suspicions are often enough to discourage people from opening virtual bank accounts. There is also the fact that virtual banks lack a company ATM system for account holders to deposit or withdraw funds. This aspect is often offset by partnerships between virtual and traditional banking institutions and/or reimbursement for fees incurred from using ATMs, but can still be a problem for some individuals. Lastly, some people simply prefer the comfort and customer service offered by a traditional bank with a physical presence.
Is there a Scottish E-Commerce Bank in Scotland?
No. someone makes up this virtual bank to cheat you. you cannot find it on the lists of banks in United Kingdom.
How do you stop a standing order going into your bank account If you can't get hold of the person responsible for setting it up?
Contact your bank to cancel the virtual payment.
Where can one find virtual credit cards?
A virtual credit is an type of invisible online currency which you can earn by filling out surveys and completing applications where you are awarded for your time and efforts.
Where can I get a virtual credit card for my small business at home?
There are several different places that offer a virtual credit card for your small business at home. Some include Bank of America, Chase and Discover.
Which is the best coaching institute in vadodara for ssc and bank PO preparation?
As there are many SSC coaching in vadodara but I have recently searched one of the best online coaching for SSC & Bank course i.e StudyAtHome is an online study portal that provides virtual classes & because of these virtual classes you can easily save your time. For Purchase visit - StudyAtHome.org & you can also call us at 8737012345/ 7776012345
What is a good virtual stock market game for teen agers?
There are a few online games to teach you how to use the stock market. A few examples are Virtual Stock Exchange, The Stock Market Game, and YD Bank virtual stock market game.
What banks are offering the best rates on cds right now?
There are many banks that are offering a good rate on cds. Here are a few of them, aurora bank, ally, ever bank and virtual bank. There are other ones as well. These can be find by typing in where to find the best CD rates.
What are common electronic banking services?
Allows customers to do financial transactions on a secure website operated by their online virtual bank, credit union or building society.
Is there a game with a virtual house that you can decorate and have a virtual avatar?
sims is a game that you can have a virtual house that you can decorate and have a virtual avatar .
