Online Banking

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What Does Online Banking Mean?

Online banking refers to banking services where depositors can manage more aspects of their accounts over the Internet, rather than visiting a branch or using the telephone. Online banking typically is comprised of a secure connection to banking information through the depositor’s home computer or another device.

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Techopedia Explains Online Banking

Online banking offers several main benefits to depositors. It provides a real-time view of finances and eliminates the need for numerous visits to a bank teller. It can also take the place of balancing a checkbook and other tedious tasks common to paper-based banking. Depositors can monitor each transaction in an accessible user interface to understand how credits, deposits, deductions and payments affect their account’s balance.

Banks that offer online banking are sometimes called "brick-to-click." Many of these banks still provide branch services but support online options. This distinguishes them from brick-and-mortar banks, which offer no online services. Brick-and-mortar banks are becoming extremely rare in the age of digital transactions, and most banks have begun moving a number of customer interactions to the Web.

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Margaret Rouse
Technology expert
Margaret Rouse
Technology expert

Margaret is an award-winning writer and educator known for her ability to explain complex technical topics to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles in the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret’s idea of ​​a fun day is to help IT and business professionals to learn to speak each other’s highly specialized languages.