E-Commerce (part 3)

Limitations of e-commerce

Lack of ATM's

One of the major disadvantages, which relates to virtual banks, revolves around the lack of ATM's. Due to this fact you can be charged to use other banks ATM's and likewise many virtual banks will not accept deposits via ATM. Therefore you either have to deposit money or checks via post which can be insecure, or transfer money from another account.

Start-up may take time

In order to register for ones bank's online program, he or she will probably has to provide ID and sign a form at a bank branch or if it strictly a virtual bank he or she may be sent these forms through the post and have to send them back. If one and their spouse wish to view and manage your assets together online, one of you may have to sign other forms before the bank will display all of your holdings together. In comparison to opening a branch account this can be done pseudo real time whereby you go into the branch, give them your personal details, sign some forms and once the account is activated you can use it almost straight away as the account is activated within the branch while you are there. Online accounts undergo the same form filling process but can take up to a week to be processed and validated before your account can be opened and accessed.

Learning curve

Banking sites can be difficult to navigate at first. Particularly for people that are not proficient in using the Internet, opening an online account or taking out a loan online can be a daunting thought. Time needs to be taken to understand such things as how to check your balance online or how to set up a standing order. This alone can prevent some people considering opening an online bank account even if the rates are much better than brinks and mortar banks.

Distrust of the User

For many people, the biggest hurdle to online banking is learning to trust it. People begin to ask questions such as did my transaction go through? Did I push the transfer button once or twice? Since they cannot physically see someone about their account and the fact that money transfers are done electronically and not person to person through a teller doubts can creep in. Upon saying this online banking system do offer all of the benefits of ATM's and branches in that you can check your balance, talk to customer service rep online about your account, order a check book, cancel a card if it has been lost or stolen to name but a few and in fact is much more convenient as all this can be done from the site rather than visiting the branch or ringing a phone number and going tedious process of automated switchboard system (see advantages of online banking). However the fact still remains that in trusting an internet banking service people will have to change the way they think about banking as a whole.

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