5 Issues and Challenges in the Online Banking Sector (2024)

FAQs

What are the problems with online banking? ›

Online banking is at risk of cybersecurity threats that could expose confidential and sensitive financial information of the customer. Hackers use various tactics like phishing attacks, malware, and ransomware to gain unauthorized access to accounts.

These numbers, though attention-grabbing, only scratch the surface of the multifaceted banking challenges in our tech-driven age. Cybersecurity threats, regulatory demands, and the ever-evolving digital landscape are just a few of the hurdles that financial institutions must navigate.

Top security challenges and risks of mobile banking include: Phishing attacks. Vulnerabilities in conventional authentication methods and systems. Device theft and unauthorized access.

The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.

The pros include higher yields, lower fees, and high-tech features that help with account maintenance and budgeting. The cons include more difficult access to customer service, as well as online security concerns. Ultimately, you have to decide what's right for you.

If hackers gain access to your banking information, this puts you at risk of not only financial fraud — but also identity theft. Scammers use stolen personal data on the Dark Web to: Take out loans in your name. Open new credit cards and ruin your credit score.

What are the problems with banking apps? ›

The two most significant issues with financial and mobile banking apps that users experience are app freezing and a dropped internet connection. Next in line is the inability of apps to display transaction details or to connect with a customer service executive directly.

Security

Security is one of the most significant challenges for online banking marketers because of the inherent concerns that are traditionally associated with banking online. Although banking systems are designed to be virtually impenetrable, cyberattacks and fraudulent activity are still a reality.

Security Breaches

With a series of high-profile breaches over the past few years, security is one of the leading banking industry challenges, as well as a major concern for bank and credit union customers.

Important areas identified for further research include freedom of choice, trust and transparency of business-to-business transactions and limits to responsibility with regard to the facilitation of fraud.

Please ensure you are using an up to date and fully supported browser to use Online Banking. Make sure you have cleared temporary internet files and cookies and your browser has extensions and add-ons disabled. If needed, also try restarting your device and router, and try a wired connection.

Online banks are some of the safest places to store your money. In fact, as long as they're FDIC-insured, online banks are just as safe as traditional brick-and-mortar banks. But it's important to follow standard web best practices when banking online.

Many, but not all, may lack the digital skills required to access their accounts through their bank's app or website, some older people remain reluctant to use the technology due primarily to safety concerns or a lack of interest, while others are excluded due to poor internet connectivity, especially in more rural ...