Online Banking Myths Busted!

One of the best digital inventions that have come out in recent years is online banking. The concept of completing entire transactions with the luxury of your phone or desktop device makes life so much easier and removes the hassle of having to head to the ATM to withdraw money or take out your card to do the same. However, there are still people who are reluctant to open a bank account and begin transacting online because of a few misplaced myths.

If you are one of them, then here are seven myths about online banking that are false and require your attention!

Myth 1 – Your money isn’t safe:

One of the most common misconceptions about banking online is that your money is potentially unsafe. Though this myth can be justified because you’re not able to see the actual transaction of money take place, you can sleep easy knowing that banks have the most robust security in place for their online transactions. Also, digital receipts are provided for all transactions done by your payment cards and can be issued as proof in a court, if required.

Did You Know? Banks have developed methods to ensure that there is almost 0% chance of getting your money stolen. Most sites log the user off automatically after a certain period and have some powerful firewalls and encryption codes in place to ensure that there’s no chance of theft.

Myth 2: Slower customer service since everything is online:

Not true. Online transactions probably have the fastest customer service rate because most banks understand that most individuals are still nascent to this form of banking. Technology-enabled banking is supposed to make your experience more comfortable and this is what a lot of banks want to accomplish.

Did You Know? Customer service forms a very crucial part of the bank operations, and you’re assured to have a much better experience as well because all the data can be read directly off a computer and allows for faster transactional speed. 

Myth 3 – Online banking is for Generation X and Y:

While this is a fair enough statement to make, it is noteworthy that close to 75% of the deposits made at financial institutions are by senior citizens and the “baby boomer” generation. From this, at least 45% are actively using the online and mobile banking formats to complete their general transactions.

A lot of people feel that technology is relegated to those born after the 1980s because they’re more adept at it. However, analytics have shown that the consumer segments of those above 40-50 have seen substantial growth, meaning that it takes a little practice to overcome your fears.

Did You Know? It’s been proven that once the older generation gets hooked on online banking services, they love it! Seniors, in fact, have a higher activity rate of usage of online Bill payments than those in Generation X. 

Myth 4 – No one uses PCs anymore for online transactions:

It is a dying trend, so there is some truth, though not wholly justified behind this myth. Now, however, most of the older generations are more comfortable using their PCs to interact with a bank website and complete their transactions.

Individuals still use a desktop as they feel more comfortable. However, it won’t be long before that number is reduced to a minimum owing to the mobile internet penetration in India, with the number growing to 442 million by the end of 2017.

Did You Know? In India, 55% of users still use their desktops, so there is a majority number for those who prefer this mode!

Myth 5 – Consumers will stop interacting with their branches directly:

Not true! While the number of people interacting with their brick-and-mortar branches will reduce, that does not mean they will stop communicating directly. People still want to feel like they’re taken care of and human interaction is always the best way to validate that desire.

The United States saw a 10% drop, but that still meant that close to 70% of users are still directly involved with their bank’s branch to do business. The Indian number is undoubtedly higher as the older generation still prefers handing in cheque books and having a physical interaction with a bank employee. It’s still a long road ahead before everyone is on an online-only platform and services such as UPI and Kotak 811 have begun recognising this and filling the void.

Did You Know? Traditional banking will be around for many more years despite the penetration of digitisation in India, especially in rural areas.

Myth 6: Online Banks can fold up anytime:

No. In fact, online banks are being invested in more than ever. People have understood the importance of saving paperwork and digitising bank operations, and this has led to more banks creating better interfaces for their online transactions.

Did You Know? The Kotak 811 account is the prime example of this, where you can download the app and open a zero savings account; all from your phone app!

Myth 7: Virtual Banks do not provide physical checks and are slower:

This is another misconception that needs to be altered. Banks do not give our physical receipt because it is a waste of paper. However, if you want to check the transaction that you’ve made, then banks will ensure that they can provide that service to you.

Physical checks, however, are not better than a digital log of the transaction. With digital payment, you’re assured of not losing the record of that transaction, and it will stay online forever.

Did You Know? Banking online is much faster than heading to an ATM and transacting because you have just to log in, finish and log out.

Conclusion:

Thus, online banking is the best way to transact for customers of all ages as they pose many more advantages than traditional banking. With blockchain and a lot more technology poised to develop in the coming years, technology-enabled banking will become more secure than ever.