Trygub A., Rieznik M.
ISSUES OF ONLINE BANKING IN
The Internet has become a central part of the way communicate with others and transact business. The speed and convenience of the online experience makes it a perfect medium for buyers and sellers. Internet banking gives customers the ability and freedom to manage their finances without having to go to the bank. In other words, you need internet banking to make use of your money without leaving the comfort of an armchair or a sofa. Advances in technology and banking security have expanded the uses of Internet banking and have made it easier to conduct financial business on the go from virtually any mobile device.
Online banking is the practice of making bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in particular, people no longer have to leave the house to shop, communicate, or even do their banking. Banking online allows a customer to make deposits, withdrawals, and pay bills with the click of a mouse.
For the online banking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check the account balance – he or she can check the balance every day just by logging onto the account. In addition to checking balances and transactions, customers can catch discrepancies in the account right away and deal with them swiftly. This can be done anywhere, as long as the person has the Internet access.
Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there may be a fee for some online banking transactions, they are often extremely low. Online banking also eliminates paper waste, which is an advantage not only for those who have to handle all the paperwork, but also for the environment.
Of course, there are also disadvantages. Security is always an issue with Internet transactions. Although information is encrypted, and the chances of an account being hacked are slim, it happens. Banks pay a lot of money to install high tech firewalls, however, and chances are good that their customer's money is in good hands.
People who do all of their banking via the Internet may also miss the personal service available at the bank. Instead, except for what's recorded on the account, all the paperwork is the responsibility of the customer. Experts recommend that people always print copies of important transactions .
The majority of the Ukrainian banks offer such a service. If not, you will have to open a card and accounts in some Internet-friendly bank. And, of course, you will need to observe all the necessary safety measures.
One of the useful services is regular charge-off. It is suffice to set up templates of payments once, e.g. a monthly payment for mobile communication or kindergarten and to set the desired schedule of these deductions. The bank will regularly perform the required transaction at the date specified by the client according to the given details.
Of course, you can see the detailed statistics of your income and expenditure at any time, and use this information in order to plan your family budget.
You can earn an extra penny with the help of internet banking: at many banks, if a customer opens a deposit online, he is given an extra bonus to the basic rate: usually is 0.25–0.5%, more rarely – 1–5%.
Except for the replenishment, bankers usually provide an opportunity to terminate the deposit online, provided that the particular deposit program envisages such an opportunity. But you can not make use of this option in every bank. For example, PrivatBank, Ukrsotsbank, UkrSibbank and FUIB (ÏÓÌÁ) have such a service. Other banks do not have such a function.
Despite a great number of benefits, Internet banking still has some disadvantages. «For example, for clients who are abroad. Sometimes they do not receive a one-time password on the phone for payment confirmation. Alternatively, you can temporarily change the method of confirmation, for this you need to approach a bank's contact center», says Iryna Pashketnyk. At the same time, problems with the text message notification occur not only abroad. «Text messages often come tardily. Once I received it only on the next day,» says the reader of «Dengi» .
It happens that the Internet banking «quarrels» with various public utility or service providers, and, as a result, their services can not be paid for weeks. But the worst case scenario is, if the payment does not reach the payee, the money simply freezes. «If money was not credited to the payee's account, was written off, and at the same time some penalties were imposed, the bank will reimburse for the damage if it was caused due to its fault,» notes an attorney, a senior lawyer of the law firm «L. A. Group» Viktoriya Chanishchi. «In any case, if any problems with online banking arise, you should immediately contact the bank on its hotline.» Besides, you have to control the transfer of payments by yourself, if the defaulted payment can lead to sanctions.
It is important to remember that according to the law on payment systems, if the bank does not perform a money transfer in time or erroneously transfers the money to another account, it is obliged to pay a penalty of 0.1% of the amount for each day of the delay. «But this mustn’t exceed 10% of the amount of transfer», specifies Ms. Chanishchi.
In order to protect customer accounts, banks use various cryptographic protections, i.e. generators of instant passwords, digital signature, 3D-secure system and so on. «In addition, every bank has dedicated and secure lines of information transfer for the protection of these operations. For example, when opening a browser window, a green field with a «lock» indicates the line's security, confidentiality of information and data transmission security», says Viktoriya Chanishchi.
Bankers recommend to change the login password once in a couple of months. «Besides, it’s necessary to make sure that the client is working specifically on the website of the Internet banking service, which is protected by a special security certificate», says Volodymyr Guguyev, the head of the department of Internet technologies in FUIB. There is no doubt that you need to observe the most basic rules as well: do not leave your phone unattended, do not tell anyone your password, and log out of the Internet banking system after all the operations were performed.
On condition that the bank system is hacked, and all funds are written off the account of the client, the bank is obliged to reimburse for the loss. However, if the system access code has been lost or stolen, and the client has not informed the bank about this in time, the theft will be investigated by the law enforcers.
The Internet banking offers, many advantages, some of them are as follows:
– it’s time saving;
– it provides savings in bank commissions;
– it makes it easier to control the family budget;
– it gives access to banking transactions 24/7;
– it’s always polite.
However, there are some risks of the Internet banking, such as:
– the bank system can be hacked (then the funds are reimbursed by the bank);
– the access password can been stolen (and if the client does not inform the bank about this, the investigation will be carried out by the law enforcement authorities);
– the bank delays a money transfer (then it will pay a penalty of 0.1% of the amount for each day of the delay. However, this amount doesn’t exceed 10% of the amount of transfer);
– the bank erroneously makes a transfer to the wrong recipient (then it transfers money at its own expense, otherwise it pays a penalty of 0.1% of the amount for each day of the delay. However, this amount doesn’t exceed 10% of the amount of transfer);
– sometimes you don't receive a text message with a confirmation code abroad (this issue is resolved by a call center employee by temporarily changing the confirmation method) .
Still, for most customers, the benefits outweigh the risks and minor inconveniences.
List of references:
1. Ìàòåð³àëè ³íôîðìàö³éíîãî ñàéòó «ÈÍÒÅÐÍÅÒ-ÁÀÍÊÈÍÃ» [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó : http://www.uic.unn.ru
2. Ìàòåð³àëè ³íôîðìàö³éíîãî ñàéòó «Äåíüãè» [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó : http://www.dengi.ua
3. Ìàòåð³àëè ñàéòó áàíêó «ÏÓÌÁ» [Åëåêòðîííèé ðåñóðñ]. – Ðåæèì äîñòóïó : http://www.pumb.ua