Online banking has become much more common and accepted in this day and age, with 55% of Canadians and 51% of U.S. adults banking online. While online banking is convenient, and overall safe with minimal security risks, many people are still hesitant to conduct their banking business online or may have misconceptions about the safety of doing such tasks. However, many of these beliefs are just myths with no justification.
1. Online Banking Impacts the Safety of Your Money
Many people still believe that if you bank online your money is not secure. However, this is not the case. The banks and reputable companies, who provide online banking services, are committed to protecting their customers’ information. Usernames and passwords security are required the majority of sites will log you out automatically after a specific timeframe of inactivity.
Firewalls and data encryption keep customer information safe. New technology is constantly being sought for fraud protection. Research shows indicate online banking users are four times more likely to monitor banking activities over those who don’t use online banking.
2. Customer Service is Lost
Some customers have the tendency to believe that customer service is no longer available if you use
online banking. Actually, that is far from it. Banks want customers to use online banking because it is more cost effective and easier to conduct business. Some online support services are even more efficient than regular customer service.
3. Online Banking Costs More
Some people are concerned that online banking services are subjected to terms and conditions changes
that those who choose to not do online banking are not subjected to. Actually, conducting banking online saves the average customer about $1,100 annually by not using paper checks or postage.
4. Online Banking Takes Longer
Some people believe online banking is time-consuming, but after you have grown accustomed to the activity, it can actually save you a significant amount of time. Plus, you don’t have to drive to the bank branch and wait in line.
5. Online Banking Can’t Be Trusted
Some individuals still think online banking cannot be trusted. These people think that making a mistake will cost them money, but customer service is there to help you every step of the way.
6. Online Banking is Complicated
While you may initially have a few questions in regard to online banking, any confusion is only temporary. Within a few visits to the site, you can navigate the site quickly and conduct your business efficiently.
7. Offline Banking is More Convenient
This is far from the truth. Offline banking requires visiting a bank branch during operating hours. Online banking is available around the clock 7 days a week. You can check banking information in the middle of the night if you choose. Mobile apps enable you to handle your banking wherever you have mobile phone service.
8. There is Instability of Virtual Banks
Some consumers fear their virtual bank could shut down and take their money. The same FDIC protection applies to online or physical banks.
9. Online Transactions Take Longer
Every bank uses a different system in regards to processing transactions, but in general, online transactions are completed as quickly as ATM transactions.
10. Physical Cheques Aren’t Available With Virtual Banks
Some virtual banks to provide physical checks if the consumer chooses to use them. Ask customer support if this is of concern.
Now that you know the truth about these myths, you should feel more comfortable when banking online. Online banking is safe and secure, and offers much more convenience than traveling to a traditional bank.
Kathy Hemsworth has spent the last 25 years as a professional writer and editor with extensive experience writing content for the financial and investment industry. Check out her other helpful articles about loans, savings and investment HERE.