After the introduction of online banking, financial transactions have become convenient. Since then, the banking industry has never been the same. Nowadays, customers no longer wait for long lines in a real bank to do their financial transactions because they only need to click their mobile phones to access their accounts. However, online banking is not a perfect system and still possesses an array of red flags.

Online Fraud – Cases of forgery reports escalated when it comes to online banking. Although there’s integrated cybersecurity protection into each bank website, there are still some fraud or proxy websites that hack user information and data.

People’s Preference – Even though online banking has become the trend in the modern age, there are still some people who don’t easily trust the services offered by the bank through the internet. That’s because there are still some that prefer traditional banking methods.

Service – If problems occur during online banking transaction, the client must call the customer service for assistance. Unlike in physical banks, where human assistance is readily available over the counter, the online bank requires a lot of on-hold phone moments.


Security – Banks offer a secure page where clients can conduct their business transactions. But this does not guarantee complete safety. Websites are still very susceptible to criminal internet attacks.

Site Navigation – Not everyone is internet savvy. Online banking is a significant advantage to the new generation but for the older age bracket, getting to know the online banking site is a little tricky. Navigating the bank website will take some time to get used to. Online banking offers a variety of transactions, so it is possible to build frustrations while learning to navigate through the website

Accessibility – If the client is living in the city, accessibility will not become a problem. However, those customers living in rural areas will have a hard time accessing their accounts because of the failed internet connectivity.

Not all online banks operate with a physical branch. Some online banks function entirely in the cyberspace. It creates another avenue for trust issues. Since most clients are used to traditional banks with branches, banks that solely operate online get questioned for their authenticity. With no way to physically check the operation, clients will have to do the detailed background check of the bank, which is another form of an inconvenience.

Password Security Is A Big Deal – Online banks do provide passwords to their clients, but this password needs to change immediately. That’s because online criminals already have a database of passwords that they can use to invade anyone’s account.


Maintenance Is A Hassle – There is no way to access online banking when the service is down. Although this only lasts for a maximum of 24 hours. But still, it’s a hassle for those who need to transact during the maintenance session.

Taking Note Of The Transaction – Sometimes it is complicated to know whether the transaction was successful especially when there is an intermittent internet connection. That is why it is critical to keep receipts after every transaction.

User Apprehension Is A Must – Some clients, typically business owners, are not comfortable with the idea of putting their personal information online. This problem is very common for the traditional businessman who does their banking in person or by telephone.


Although online banking has a lot of disadvantages, its upsides are also helpful. There is no such thing as a perfect system, and people tend to be very picky when money is involved. But one cannot deny the fact that e-banking has a lot of customer-friendly features. For sure the financial industry will not take a step back, but instead, it will take more steps in addressing the disadvantages of online banking.

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