Online Banking

So is online banking perfect? It’s not as perfect as we might want to think. Online banking has its problems and vulnerabilities that one should be aware of. Before you consider this option for banking, consider the drawbacks to this type of service.

Most online banks have a retail service available. This is because the big institutions like Wachovia, Bank of America, and Chase provide a full service option for their clients. However, there are a few online banks that don’t offer an in-store bank with a teller or professionals who can help you with financial matters. If you’re a person looking for a live person or familiar face that’s associated with in-store retail outlets, you may be in for a surprise if your online bank doesn’t offer that option. Make sure you ask the bank about the full spectrum of services readily available for the bank consumer.

Most online banks do not offer a live person to help you make the right decision when you are transferring assets or changing your account information. To get help, you’d have to contact a live person. But why call a live person to get help? They can do the transaction for you over the phone as if you were online. This defeats the whole purpose of convenience banking. It’s important to understand that online banking is not for the technophobe.

This also begs the question about customer service. Online banking clients may experience a bad service online. The only recourse would be to contact the toll free number and wait for an unknown person to respond. With a retail store, you can go to a familiar face and that employee could be the difference between an unpleasant experience and an excellent service.

The most important concern regarding online banking is security. Due to increasing criminal activities on the internet, it’s important to take action to prevent your account from being compromised. Phishing scams that take you to a fake site to collect your account password will leave you washed out. Moreover, if your bank site doesn’t have high level encryption, you’ll be allowing internet hackers full access to your user id and password. Remember, your online bank account could be your most important asset on the internet. Allowing an unknown person access to your account is not the same as allowing a person to your myspace.com profile.

Another problem is that an online service could be down because of technical difficulties. If you’re doing an important task, you may not be able to perform the action immediately. This could mean that you won’t get emergency funds or have someone paid for a certain service.

We shouldn’t completely fear online banking. It’s not for everyone. Consider the pros and cons of this type banking before you make your decision.