Tackling the problems of digital banking Your Money & You John Ellis

Do you remember back in the day when you had to visit the bank manager for whatever reason, review your overdraft, apply for a loan, you put a bit of e ort into your appearance for the visit?

Now you don’t have to get out of bed to conduct most business with a bank.

Once you knew the bank manager and they knew you. You had the opportunity to build relationships with bank sta and seek face-to-face assistance. We were once classed as customers, clients of the bank. Not anymore. We are now consumers and are pushed more and more to digital interaction to manage our nances whether we wish to or not. Take a tour of the net and you will see the various nancial providers are improving the way they digitally interact with us.

One notable downside of digital banking is the potential loss of the personal touch.

Unlike traditional banking, where customers could build relationships with bank sta and seek face-to-face assistance, online banking can feel impersonal. e absence of direct human interaction may leave some customers feeling disconnected or frustrated when they encounter complex nancial issues or require personal advice. While customer support is often available through helplines or chatbots, it does not provide the same level of reassurance or speci c guidance as a conversation with a knowledgeable member of sta .

Striking a balance between the convenience of digital banking and the importance of personalised customer service remains a challenge that nancial institutions must address to ensure customer satisfaction and loyalty in an increasingly digital world.

Even cash is becoming scarce. You see it more and more that actual money is not being accepted – card only. Digital transactions have gained popularity but there are instances where cash payments or withdrawals are necessary or preferred. And when the system is down you may experience di culties accessing cash from ATMs. Yes, accuracy increases, human errors are reduced, and you can keep a close eye on your nances. Apart from providing the usual banking functions it makes loans, investments, and insurance products more accessible to those who lived in areas that have had inadequate services and those with limited mobility. As we see avenues have opened up for micro nancing and crowdfunding, enabling small businesses to access capital more easily. But with any digital innovation, there are bene ts and dangers associated with its use. ese online advancements do o er convenience and accessibility. With just a few taps on a phone or clicks on a computer, you can access your accounts, make payments, transfer funds, and perform a wide range of nancial operations at a time that suits you, thus saving valuable time and allows you to manage your nances efciently, regardless of your location.

However, it is essential to recognise and address the potential dangers that accompany these developments as cybercriminals are constantly evolving their techniques to exploit weaknesses in online platforms through phishing attacks, identity theft, and malware infections posing signi cant threats to users’ private nancial information. Data breaches happen regularly as hackers target nancial institutions to gain access to customers personal and nancial information.

One breach can have severe consequences, from nancial loss to reputational damage for both the customers and institutions.

Digital banking relies heavily on technological in- frastructure, which, at times “fall over”. ese downtimes or system failures can prevent users from accessing their accounts. Such disruptions cause inconvenience, nancial loss, and erode customer con dence. john@ellis nancial.ie 086 8362622

Banks must continue to invest in tougher cybersecurity systems, employ better encryption techniques, conduct regular audits, and establish proactive incident response protocols to reduce the risks associated with data breaches. And even though they continue to pour money into on-line interaction they must not lose “the common touch”.

And as for us it is crucial we remain vigilant, use stronger passwords, set up two-factor authentication where available and stop sharing condential details on social media sites.