Online banking, also known as internet banking or e-banking, is a system that allows customers to conduct various financial transactions and manage their bank accounts through the internet. Here's a general overview of how online banking works:

 

User Registration:

To use online banking, customers typically need to register for the service through their bank's website or mobile app.

Registration usually involves providing personal information, creating login credentials (username and password), and possibly going through additional security measures like two-factor authentication.

Login:

Once registered, users can log in to their online banking accounts using their chosen credentials.

Security measures like one-time passwords (OTP), security questions, or biometric authentication (fingerprint or facial recognition) may be used to enhance account security.

Account Overview:

After logging in, users can view a summary of their accounts, including checking, savings, loans, and other financial products.

The account overview typically displays account balances, recent transactions, and other relevant information.

Transaction History:

Users can review their transaction history, including deposits, withdrawals, transfers, and payments.

The transaction history often includes details such as date, time, amount, and transaction type.

Funds Transfer:

Online banking allows users to transfer funds between their own accounts or to other accounts within the same bank.

External fund transfers, such as sending money to accounts in other banks, may also be possible through services like Automated Clearing House (ACH) transfers.

Bill Payments:

Many online banking platforms offer bill payment services, allowing users to pay bills directly from their accounts.

Users can set up recurring payments or make one-time payments for utilities, credit cards, loans, and other bills.

Mobile Banking:

In addition to web-based platforms, most banks provide mobile banking apps for smartphones and tablets.

Mobile banking apps offer similar functionalities to online banking, enabling users to manage their finances on the go.

Alerts and Notifications:

Users can set up alerts and notifications to receive updates on account activity, low balances, large transactions, or other specified events.

Security Measures:

Banks implement various security measures, such as encryption, secure sockets layer (SSL) technology, and multi-factor authentication, to protect users' sensitive information and transactions.

It's important for users to follow best practices for online security, such as regularly updating passwords, avoiding public computers for banking activities, and being cautious of phishing attempts, to ensure the safety of their online banking experience.