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A lot of people are afraid of online banking. With all of the cheesy
movies focused around the scary Internet, who would
ever want to put their money online? It is no doubt that security
is a major concern for everyone.
Online banks are focused on security much more so than any off-line
branch of their bank. Banks realize that as a new generation takes
over, many more people will be banking online. Kids today have a
really handle on the validity and use of the Internet. But, kids
don't have any money. As younger generations take over and they
compare online banks to off-line banks, the only natural choice
they will make is to put their money in higher yield setting. Online
banks will continue to have a higher yield due to the lower overhead
required. Assuming this trend continues, at some point many banks
will focus their products to only the online space.
Banks are increasing their online business and taking the burden
off of their customers. Many banks provide guarantees to customers.
Such as HSBC's zero-loss guarantee. If fraud is committed against
you, the bank will not hold your account liable for any damages.
That guarantee is pretty powerful. Heck off-line banks don't offer
that. I had a friend who was robbed at any ATM while on vacation
a few years ago. He was charged $50 by his bank to refund the amount
to his bank. They had it on camera and they made him pay $50?
I think world renowned convicted computer hacker Kevin Mitnick
summed it up best in a recent CNN interview:
CNN: How much do you trust online banking and the
usage of credit cards online?
MITNICK: I trust online banking. You know why? Because
if somebody hacks into my account and defrauds my credit card company,
or my online bank account, guess who takes the loss? The bank, not
me.
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