Online Banking

Online banking is a service that allows an account holder to obtain account information and carry out banking transactions through a financial institution's website on the internet, typically accessed from a desktop or laptop computer, though the term is also used more broadly to cover browser-based access from any device. It is also commonly called internet banking or electronic banking.

Online banking generally includes functions such as viewing balances and transaction history, transferring funds between accounts, paying bills, applying for products, and managing statements, all without needing to visit a physical branch. It sits alongside mobile banking, which delivers similar functions through a dedicated smartphone app rather than a web browser.

Online banking replaced the need to queue at a branch or mail a form for routine tasks that do not require face-to-face interaction. Logging into a secure website takes the place of a trip to the bank, letting a customer check a balance, move money, or pay a bill from a computer at home or at work, at any hour the service is available.

For many banks, online banking was the first major step in moving everyday transactions away from branches, paving the way for the later shift toward mobile apps as smartphones became the primary way people access the internet.

• Viewing account balances, statements and transaction history.
• Transferring money between a customer's own accounts or to other people and businesses.
• Setting up and managing standing orders and direct debits.
• Applying for new products, such as loans or additional accounts, directly through the platform.

Because online banking gives direct access to a customer's money over the internet, banks layer multiple security measures around it, including encrypted connections, login credentials separate from other services, and additional verification steps for higher-risk actions such as adding a new payee or making a large transfer.

Beyond day-to-day transactions, online banking has increasingly extended into functions that once required an in-person branch visit, including opening a brand-new account entirely online, applying for loans and credit cards, and completing identity verification digitally. This expansion has been a key driver behind the rise of digital-only banks that operate with few or no physical branches at all, relying entirely on their online and mobile platforms to acquire and serve customers.

As online banking has taken on more sensitive functions, regulators have correspondingly increased requirements around digital identity verification and fraud prevention, recognising that the convenience of remote account access also creates new opportunities for impersonation and fraud if not properly safeguarded.

Beyond personal banking, online banking platforms built for small businesses often include additional functionality such as payroll processing, multi-user access with different permission levels for employees, and integration with accounting software, extending far beyond the basic balance-checking and transfer functions typical of personal online banking. These business-focused features reflect the more complex financial management needs of running a company, where several people may need visibility into, or limited control over, the same business accounts.

Because business online banking often grants broader authority over company funds, financial institutions generally apply additional security layers for business accounts, such as dual authorisation requirements for larger transactions, that go beyond what a typical personal account requires.

Regulatory frameworks covering online banking generally impose specific requirements around session security, data encryption and customer authentication, recognising that a breach affecting online banking infrastructure could expose a very large number of customer accounts simultaneously, unlike a security failure limited to a single branch.

Many banks also provide online banking access to joint account holders and authorised representatives, with permission levels that can be configured to allow viewing only, or full transactional access, depending on the arrangement the account holders have set up.

Session timeouts, which automatically log a customer out after a period of inactivity, are a standard security feature across virtually all online banking platforms, reducing the risk of an unattended, logged-in session being accessed by someone else.