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Internet Banking | Accounting Knowledge


Internet banking is a service to conduct banking transactions through the internet network. It is a banking activity that utilizes internet technology as a medium for performing operations and obtaining other information through the bank’s website. This activity uses the internet network as an intermediary or liaison between customers and banks without having to go to the bank’s office. Customers can use a desktop, laptop, tablet, or smartphone devices that are connected to the internet network as a liaison between the customer’s device and the bank system. Look at boi net banking website for more information about boi net banking.


Internet banking service features include general information on savings / current accounts, deposit accounts, information on account transfers, funds transfers, both transfers between accounts and between banks, credit purchases, information services such as interest rates and exchange rates, and payments, such as telephone payments, internet TV cable, electricity and various other types of payments.

Ways of working

To use internet banking, customers must have a user id, password, token or One Time Password (OTP), and internet network. User IDs, passwords, and tokens can be obtained by registering with a bank. When using internet banking, customers must ensure that the website accessed is the bank’s internet banking website. Then the customer will be asked to enter their user id and password on the home page or login. When conducting a financial transaction, the customer will be asked to enter the OTP obtained from the token. After the sale is completed, the customer must ensure that he has logged out of the internet banking page. The bank sends a notification via e-mail as proof that the transaction was successful.

Internet Banking (e-banking) Features, Strengths, and Weaknesses

Internet banking makes it easy for you to do a series of transactions quickly anywhere. Formerly, operations related to depositing and withdrawing money were done in the usual way, namely through a bank teller or ATM or using a CDM machine (cash deposit machine for cash deposits without going through a teller).

Advantages of Internet Banking

Practical and free. You can save time and money in banking transactions. No need to pay transportation costs or queue to the bank because everything can be accessed from your smartphone. E-banking transactions anywhere and anytime (24 hours).

Customers can do many financial transactions, create and manage transaction schedules at one time.

Save operational costs for banks. Banks that have implemented information technology systems and have internet banking features indeed save operational costs because there is no need to open new bank branches, etc.

Perform various types of bank transactions: non-cash money transfers between banks, check balances and mutation of accounts, pay credit card bills, pay monthly bills (such as electricity bills, telephone, water, tuition fees, subsidized TV), buy electric pulses, settle transactions in e-commerce (online shopping, pay for plane tickets, hotel tickets, etc.) etc.

Open a new savings account, open an education savings account, term savings, buy insurance, buy a mutual fund, or open a deposit account quickly and safely.

You are applying for a loan KTA, KPR, KMG online easily and quickly.

Check the rupiah exchange rate (exchange rate) against other countries’ currencies, such as American dollars (USD), Singapore dollars (SGD), Australian dollars (AUD), euros (EUR), Japanese yen (JPY), etc.

Update with various programs and the latest products from the Bank.

Lack of Internet Banking

Prone to theft and data tapping. As a customer and also, the bank needs to be aware of cybercrime by hackers. Hacker crime is expected to steal customer data in e-banking can happen if there is negligence. So, customers are required to comply with all proper e-banking/internet banking procedures so that they are safer. Meanwhile, banks must be diligent in supervising and maintaining banking information technology infrastructure.

Prone to crime online with various modes such as skimming, phishing techniques, fraudulent gift offers, etc. Do not be easily tempted by things that do not make sense or tempting advertisements.

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