The TSB scandal, which caused customers to get locked out of their accounts while still getting charged, triggered the possibility of online banking. Because of this, 800 people will lose their job, and an additional 162 branches of the RBC will close down.
In 2017, 63 percent of the UK’s population heavily rely on online banking. This data was corroborated by another study which showed that UK’s consumers now turn to mobile banking apps to do their transactions.
Through mobile banking, not only could banks increase their engagements to customers but also it will deviate them from traditional business. Banks will no longer run multiple branches which saves them money for rent, and for everyday banking transactions. Reports from JPMorgan say that depositing a check online is 96 percent cheaper than depositing through a human teller.
Online banking is advantageous in some aspects. The most primary advantage relates to convenience. Online banking allows a person to pay their bills or transfer funds by just using a smartphone.
Through online banking, a person could access his or her account at any time without waiting for a bank to open the next day or falling in line for long hours to do a simple transaction. It is most convenient especially for people who are always on the go and who stick with their work schedule.
Despite these advantages, there are also risks coupled with online banking. Nowadays, identity theft is rampant. When a person’s information is affected, it could take an extended period and a significant amount of money to rectify the problem.
Not all online transactions take effect immediately. Sometimes, these transactions take as long as traditional banking transactions. In terms of customer service, troubleshooting through traditional customer service is still better than that in online banking applications. Some people are more inclined talking to human customer service than go through the list of customer service options in banking apps.
In the UK, one out of five adults uses mobile banking services in checking their account balance or tracking their expenses for the day. On the other hand, those who opt for traditional banking check on their accounts less. In the past three months, one out of five customers has not checked their banking accounts.