Claiming that online banking is one of big buzzwords in finance right now would be an understatement. Over the past few years, it has experienced a mass-scale breakthrough and organically complemented traditional accounts. For a variety of reasons, however, online banking is still considered second-rate banking by many. Even today, there are myriads of arguments held against online banking. Only few of them are actually based on facts, however. Let's have a look at the myths of online banking and in which way they hold up to closer scrutiny.
Myth #1: Online banking is complicated
In the early days of online banking, account holders were treated to overly complex user interfaces, which required a manual to understand and hours to navigate. Needless to say, slow Internet connections did not help either, turning the online banking experience into a cumbersome and complicated process. Today, however, things have radically changed for the better. In many respects, online banking websites are providing a far better service experience than most human banking clerks at your local branch office (if there is one, that is). It's a lot quicker, too, since you don't have to leave the house and queue up.
Conclusion: Myth busted!
Myth #2: Online banking is not full banking
It is somewhat bewildering that some people still seem to believe that online banking doesn't offer the full range of banking facilities. In fact, online banking has made banking not only a lot easier, but put many specialist services into consumers' own hands. Setting up a standing order no longer requires filling in a form. Buying and selling funds can be managed comfortably through an online portal. And even settling banking disputes with vendors can be managed through your online account. It would probably be closer to the truth to claim that it is only through online banking that you are given the full potential of banking.
Conclusion: Myth busted!
Myth #3: Online banking is expensive
As with any new technological breakthrough, pioneering companies will initially demand high fees to cover the expenses of their research. The same once applied to online banking, with many banks demanding excruciating fees for online transactions and monthly fees far exceeding those of regular highstreet current accounts. Today, although there are still a handful of banks out there slapping costs onto online banking, this is no longer the norm. In fact, most online accounts are entirely free and can save you a lot of money by reducing transaction costs. All in all, online banking can safely be considered less expensive than regular banking – and its costs are set to decline even more over the next few years, as the technology becomes even more widely accepted.
Conclusion: Myth busted!
Myth #4: Online banking is unsafe
One of the most widely perpetuated claims about online banking is that it's unsafe and not yet fit for the masses. This is actually a more difficult myth to bust, since there is, in fact, a grain of truth to it. After all, it can not be denied that many online bankers have found their passwords hacked into after logging into their online banking website in an Internet cafe. Certainly, mobile devices like the iPad have made it easy to take care of banking affairs on the go – thereby considerably increasing the risk of fraud.
On the other hand, this doesn't so much mean that online banking as such is unsafe, but rather that mobile banking, which is admittedly still in its infancy, will require a few more years before it can be considered safe enough. Online banking itself, meanwhile, has constantly been improved and, thanks to the introduction of a wealth of new technologies, is now arguably more safe than withdrawing cash at an ATM.
Conclusion: Myth busted!
Summing up, online banking may actually be safer, cheaper, more expansive and easier to use than traditional banking. Of course, you can still decide to remain „on the safe side“ by believing in the myths cited above. Just as long as your preference of fiction over facts may actually cost you a lot of money.