This is the outgrowth of personal computer banking that uses the internet as a channel of conducting various banking activities such as paying of bills, paying of mortgages, checking the account balances, transferring of funds among different accounts and purchasing various financial instruments. In online banking, the customer uses software that runs the internet banking programs resident on the bank’s web server.  Despite the benefits of online banking services, there are issues & challenges users and marketers should be aware of. We explore the five key challenges.

Challenges of online banking:

E-banking has various advantages which improves the banking system but there are disadvantages of using internet banking.  These are as follows:

Technology disruptions

Online banking relies on a strong internet connection. If your internet is disrupted by a power outage, server issues at your bank, or if you’re in a remote location, your ability to access your accounts might be affected. Scheduled site maintenance also means you can’t access your accounts and may have to seek an alternative.

Privacy and security concerns:

Financial institutions have very good security, but no system is foolproof. Valuable information is always prone to hacks, but you might be able to prevent this if you:

Always use the mobile app and the website directly. You should see a small lock to the left of the search bar, which indicates the site is secure.

Make sure you have a strong password based on a combination of numbers, symbols and letters. It’s also important to change your password regularly.

Do not click on any links in text messages if you haven’t agreed to that method of communication.

Use two-step authentication, which adds an extra layer of security.

Lack of direct contact between customer and banking officer:

Online banking requires effective customer service for handling issues faced by the user. But lack of customer support creates disappointment among the customers.  There are some online payments which may not be reflected in the system due to technical issues. It also creates insecurity among the customers. Thus the lack of support from customer service executive is a barrier in online banking.

Training and development:

The banks need to conduct training and development program for employees for providing quality online services which enhance the customer experience. It requires huge investment to train them for providing effective services.

Malware challenges:

Malwares are malicious software codes that are designed to enable the intruders to fool the customers that they are protecting them during their transactions. The malware attacks happen to be a factor in internet financial crimes because they perform account information theft, fake web site substitution and hijacking of the accounts.

Owing the fact internet is universal, all web based services counting online banking also have the leeway to get the security peril. Online banking is a financial organization so the most risk that always occur is phishing because the criminal wants to get the access to steal the money. Phishing is type of hacking that use many ways such as information theft, virus attack and unauthorized access.  Information theft is occurs when the criminal uses your personal identifying information such as name security number. So the criminal will get access the account. Virus attack is commonly affected the online banking system will make the person to connect to their account as they will be connected to the false web site while the criminal get the access of their true online banking web site. The unauthorized access and use in phishing is use the computer or network without the owner permission. They can get the access by connecting to it and then logging in as legitimate user. It will cause damages but they will get access to the data, valuable information in the computer.

Published in The Daily National Courier, June, 09 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.