Disadvantages of Internet Banking

Disadvantages of Internet Banking

There's no doubt that the advent of the internet has made a positive impact in the lives of many people. And not only individuals have benefited from this technological advancement because various industries have felt its great influence as well. The banking industry is just one of the many sectors on the commercial side that has embraced the internet. This phenomenal innovation has led the industry to introduce the concept of internet banking.

Internet banking services provide a number of benefits to consumers. But while it has its advantages, customers wishing to join the trend need to be aware of the disadvantages as well. Despite the growing popularity of internet banking, it cannot be denied that some people still remain hesitant doing transactions online especially where money is concerned. Amidst the aggressive marketing made by the numerous financial institutions that have gone online, some sectors of society are still doubtful about this type of banking notably on the aspect of security.

The major disadvantage of internet banking for the older generation is the availability or interest in using computers. As you get older there is a resistance to change. As they did not grow up with computers, many are held back by their fear of the unknown. They have done their banking with the same bank at the same branch for many years and don't see the point of changing at this time of their life.

In addition, because you are performing the online banking transactions yourself there is no-one else to blame if an error occurs. Banks only offer a 30 day complaint limit to resolve any issues.

Online Banking is Impersonal

Doing transactions on the internet can be very impersonal. In other words, you only do business with the use of a computer. No individual to receive and check your money or correct some wrong information that you might have written on a certain form. And so for people comfortable dealing with real people who provide personalized services and using paper and money, internet banking is not ideal. Some people prefer the social aspect of going to their bank and speaking with the manager or teller with regard to their financial needs. Face to face meetings are better for handling complex transactions or problems that may require expert advice.

Lack of Trust with Online Banking

Let's face it, many people still don't trust the internet. For the new users who have performed financial transactions only a few times, they may still doubt whether or not they did the right thing, such as clicked the right button and so on. They can only be comfortable once they print the transaction receipt and the transaction appears on their bank statement.

Online Banking Difficult For First Timers

For a first time user, navigating through a website of an internet bank may be hard and may take some time. Opening an account could also take time as some sites ask for numerous personal details including a photo identification which can inconvenience the potential customer. Because of this complexity, they may be discouraged to use this online banking service. Tutorials and live customer support may be provided, though, to help the client in his or her needed tasks so it's best to take the time to know the virtual environment.

Security of Online Banking

Many people shy away from internet banking because of the security threat. They can't help but worry about this aspect what with news on fraudulent bank transactions that pop up every now and then. However, this should not be a problem as banks that provide internet banking services prioritize security above anything else. Since they value their customers, they always use the most advanced security technology in protecting their websites. In addition, the Federal Deposit Insurance Corporation (FDIC) is also standing behind them. 

Online Bank Website Changes

Most banks upgrade their online programs on a periodic basis sometimes adding new features and products. When this happens, the bank may ask customers to re-enter account information which can be a cause of worry.

Online Banking, Technical Issues

The unprecedented growth in online banking has put a great deal of pressure on antiquated computer systems that haven't been upgraded to keep up with the times. We are hearing, more and more often, especially with the bricks and mortar banks that offer online banking, that their website is down. This can be extrememly frustrating to their customers. We have come to rely on computers so much that we have forgotten how to do things the manual way. There are valid reasons to keep some cash under the mattress for emergencies!!

The forecast is positive for online banking as it’s expected to grow . The Forrester Research report said this type of banking service is targeted to the Generation Y customers or those born in the late 1970s. Financial analysts agree that the online bank services are indeed having a great influence in the marketplace. 

But while all these interesting features look great, consumers should be wary in choosing a bank that offers an online banking service. Doing some research is the right step towards learning all about internet banking and the reputable online banks in existence today. Verify the authenticity of the bank as well as its financial status by checking the Federal Deposit Insurance Corporation at www.fdic.gov.

Disdvantages of Mobile Banking

Even though there are disadvantages in banking online the benefits far outweigh the concerns. Online banking has had a great influence on the way companies do business in the global market place. Online banking is here to stay and it is the preferred choice for everyday banking transactions. Being able to access your bank accounts 24/7 from anywhere puts you in control of your finances.