The internet banking industry actually brings many benefits to its users. However, in order to provide these facilities, internet banking sectors always face with inevitable various challenges that can disrupt the smoothness of the transaction process and the prestige of the bank that provides internet banking online in Malaysia.
1) Transition in banking habits
The pandemic has caused a rise in online banking usage. Let’s look at the transition in banking habits among bank users in the United Kingdom. Since March 2020, UK bank TSB has seen a 137% increase in internet banking registration. This adoption of internet banking in the UK has surged due to the lockdown restrictions. Therefore, online banking adoption has skyrocketed, with up to 80% of people preferring online banking to visiting a bank, and during pandemic, several banks all over the world had begun slowly to close their physical branches.
The majority of these individuals are adaptable and knowledgeable about traditional banking. On other hand, in the United States, the aversion to transition to internet banking is typically caused by a lack of trust in the online system or an inability to operate online portals. As a result, banks are having difficulty convincing people to use online banking. In this case, banks can simply show their customers the benefits of online banking and improve the security system and educate people on how to use internet banking.
2) Threats to security systems
Because of the inherent concerns that have traditionally been associated with online banking, security is one of the most significant challenges for online banking marketers. Despite the fact that banking systems are built to be nearly impenetrable, cyber attacks and fraudulent activity still happen on a regular basis. But nevertheless, many users are unaware that their online behaviours are putting them at risk. Did you know that unfortunately 71% of fraudulent bank transactions are made through mobile browsers and applications? Fraudsters prey on the user’s poor privacy habits. Weak passwords and the use of unsecured networks make people vulnerable to online attacks such as login credential stealing and phishing, which could lead to fraudulent bank transactions.
3) Technical problems
When we use the internet, we run the risk of experiencing technological and service outages. If your internet connection is slow or unavailable, you may be unable to access your accounts. The frustration that you feel as a bank user is a challenge that the internet banking sector faces. They can’t do anything if the bank user has a personal technical problem such as a slow internet connection and at the same time, they face a struggle in ensuring a good and smooth customer experience if the website or bank application owned by them face technical problems. Regardless of how advanced the technology is, bank servers are still susceptible to both intentional and unintentional downtime. System downtime can be difficult because it not only prevents users from making payments or conducting transactions but also raises concerns about data and fund security.
It is true that the internet banking industry faces many challenges to provide seamless and smooth customer experience and certainly, it brings many benefits to its users. The internet banking industry for sure has taken many steps to improve while facing those challenges.