The internet is credited with many delightful innovations, many of which have changed the way the world works. Among these many changes are the ones that have come to the field of finance and banking. More importantly, the rise of internet-based financial services and banking is a constantly growing field that continues to revolutionize the way that money is dealt with. The terms financial services is an umbrella term that has several subcategories that we can talk about endlessly. However, this article focuses solely on the benefits and risks of said services.
Any time that the internet is involved, there are several benefits and a sizable number of risks involved. On one hand, you have the immense capabilities of internet connectivity that allow for quick data transfer. On the other hand, you have vulnerabilities in the system that can easily be manipulated. It is important to remain in the know about the benefits and risks so users know what they are getting into.
Benefits of Internet-Based Financial Service and Banking
It is common knowledge that the internet is directly responsible for creating immense convenience for us. The internet has made life smarter, faster, and more efficient, and we have never been able to get more work done than we can now. When it comes to banking and financial services, the internet has also made it easier to deal with our money. Using AT&T Internet makes this entire experience almost effortless. Learn more about their different offerings, and sign up, so you can join the family!
Convenience and Accessibility
Thanks to internet-based financial services, we have access to our money 24/7. We can send or receive money, pay bills, check balances, and so much more whenever we want. You can manage your finances as you please removing the hurdle of having to wait for your bank to open in the morning. Banking applications allow you to have complete control of your finances. Whether it is seeing how much money you have, what transactions you’ve made, or any other relevant piece of information, it is all right there.
Faster Transactions and Processing Times
With internet-based financial services, you perform all your transactions in real-time. Need to send money to a friend at 2 am? Done. Compared to traditional methods, this is almost too good to be true. With in-app check deposits, banking applications use image recognition technology to process a check and credit your account. This is infinitely better than walking into a bank, waiting in line, dealing with a teller, and waiting for the check to come through. An underrated feature is digital signatures which give you the ability to sign documents. You save countless hours of printing a document, signing it, scanning it, and then emailing it to the bank.
Lower Fees and Costs
Compared to traditional banking methods, internet-based financial services also have significantly lower costs. For the bank, there are lower overhead costs since there is no need for physical banking locations. This cost-saving is also passed onto the customer by means of charging lower fees in other areas. With online banking, there are usually no transaction fees involved. This allows customers to send and receive money without having to pay fees for each transaction. The fees might not seem like a lot but when you look at how much you pay over time, the amount becomes quite a lot.
Improved Security
One of the main reasons why internet-based financial services have become so common is because of the security that they provide. Features such as encrypted data transfer to protect data, two-factor authentication to protect access, fraud detection to prevent theft, and constant monitoring to ensure everything operates as it should. Moreover, mobile alerts also allow customers to get real-time updates about transactions being made from their accounts.
Risks of Internet-Based Financial Services and Banking
Anything that is connected to the internet is always at risk of compromise. Cybercrime continues to be one of the most trying issues of our times. For all the benefits that the internet offers, the ability for someone to remotely cause you some form of harm is some dystopian nightmare that has come to life.
Security and Fraud Risks
For all the security that internet-based financial services offer, there is always a risk of your account getting hacked or your identity being stolen. Once the perpetrators have been able to gain access, there is little you can do about it. Owing to the ease of transfer, an entire amount of money can be stolen in a moment. Before you can do something about it, the money is long gone and you are left with nothing. Despite all the security measures in place, the risk always exists.
Technical Issues and Glitches
With any software, the risk of something going wrong constantly exists. Beyond cybercrime, internet-based financial services suffer from other technical issues that can hamper their usage. This includes connectivity issues due to poor internet, software bugs due to poor app development, compatibility issues due to subpar systems or incompatible software, and user errors due to inexperience. The issues can severely hamper the usage of internet-based financial services.
Regulatory Risk and Concerns
The biggest thorn in the success of internet-based financial services continues to be regulations. This field is known as financial technology or fintech for short. Seeing as it has grown to the scale it has in recent times, it is important for it to be regulated. Ensuring compliance is imperative since it allows for customer data to be protected and not misused. Financial institutions must begin by creating a system where there is no chance of malware, phishing, or hacking. Next, it needs to ensure compliance with data protection laws notably the California Consumer Privacy Act (CCPA) in the US and the General Data Protection Regulation (GDPR) in the EU.
There are a whole host of regulations that aim to curb any harm possible to the fintech infrastructure but adoption is not as swift as one would like it to be. Seeing as the world is moving towards fintech at an incredible pace, a lack of proper regulation could prove disastrous in the event of a large-scale cyberattack.
Conclusion
Internet-based financial services and banking are the future of the way money is dealt with. The ease of operation, convenience that it offers, and overall infrastructure of it all make it an incredibly exciting space for the future. Fintech startups stand to become some of the most influential in the world and for good reason. Naturally, internet-based financial services come with certain drawbacks that prevent more trust in the system. However, with the current trajectory of how things are going, widespread trust and adoption is only a matter of time. At the core of it all, having internet that you can count on will go the longest way. Using AT&T Internet has proven to be a game changer for customers all over and if you haven’t already joined, visit here to learn more and become a part of the AT&T family.Download Doc
