Internet banking makes life easier

Internet banking makes life easier

JAKARTA (JP): There are banks that exist only online, while
there are others that do not even include Internet banking in
their portfolio of services. However, a third group, which is the
brick and mortar banks with Internet services, has been growing
very rapidly in number in the past couple of years.

The Internet is a level-playing field. Small companies,
including small banks, can compete with bigger ones when they are
in cyberspace. Their weapons are convenient services. Imagine
being able to file a request for a car loan online, for example.
You will not have to suffer from the discomfort of being
interrogated by the bank credit manager. Online, you can fill in
the forms in complete privacy. If your application is rejected
because of a lack of credentials, or because you are not
considered financially capable, you will be saved from the
embarrassment, as no one else is likely to know about it.

The convenience of Internet banking does not stop there,
however. Here in Indonesia a number of banks have begun offering
services that allow you to check your real-time balance, pay
phone and electricity bills, refill prepaid cell phone vouchers
or transfer money to another account in the same bank. Third-
party payment is still not possible in all banks, unfortunately.
Banks that allow you to transfer funds to a different bank
usually limit the amount you can transfer.

With Internet banking, you can also pay the bills for your
pager, ISP, credit cards, and the installment on your new TV set
or washing machine. In some banks, you can even pay your
children's school fees!

Banks do not use a uniform interface for Internet banking,
unfortunately. One of our local banks has thoughtfully chosen the
interface of the familiar ATM, so that the learning curve for
users will be shorter. Anyone who knows how to use the ATM will
be able to make his transactions on the Internet.

For small businesses, retailers and traders, the account
statement facility is very useful. Before the goods are shipped,
they can check at their bank's website whether their customers
have made the payment. Those who work at home can also check if
their clients have transferred the fees for completed jobs, and
then send an e-mail acknowledging the receipt -- all without
having to get dressed and leaving their homes. You should check
banks that provide detailed account statements -- the date, the
amount and the name of the payers -- if you need this kind of
convenience. Keep in mind that banks usually keep your
transaction records for the last 30 days only, some longer.

The money itself may not be available immediately, but at
least you know that the payment has been made. Some banks in the
U.S. have Internet banking services that are compatible with
personal financial management software such as Money or Quicken.
These software programs are not very useful here in Indonesia
because we have different regulations and requirements.

What about security? The security and safety of accounts
concerns everybody. Most banks use the SSL with 128-bit
encryption. What, for example, will happen if your phone
connection to your ISP is cut in the middle of accessing your
bank account? To protect you in cases such as this, banks have a
system that will immediately cut all data transmission and return
to the account status before the interrupted transaction.

One way to protect yourself is to not use the same account for
receiving payments and paying bills. Also, have a separate
account in the same bank to stash all your hard-earned rupiah.
Leave just a sufficient amount in the account that you actively
access via the Internet.

And, as always, do not forget to change your password
regularly. And do not lose it. (Zatni Arbi)