The Most Important Risks of Electronic Banking

Banking services using modern information and communication technology, whether through the Internet or automated distributors, private networks, mobile smartphones or personal computers, it is a banking service that is done remotely, and during twenty hours and every day of the week at a very fast speed and at lower costs without spatial convergence between the customer and the bank, and banking Electronic has great risks and in this article, we will explain to you the most important risks that arise from electronic banking.

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Operational Risks

Resulting from the potential for loss and malfunctions in the comprehensiveness of the system or customer errors or from inappropriate electronic programs that are appropriate for banking and electronic money, and insufficient insurance for the systems where it is penetrated in order to display and exploit customer information, whether from inside or outside the company, and from operational risks inadequate systems design as a result of Inefficient systems to meet requirements and lack of speed in solving problems, in addition to that, abuse by customers as a result of lack of proper use, and failure to take all necessary measures with insurance.

Also read: How Electronic Banks Conquered the World in a Short Time

Strategic Risks

Taking into account how to achieve the appropriate mix of traditional and electronic banking services, and its importance comes with its significant impact on the future of the bank and its many components, each of the regulatory controls that are compatible with the conditions of each bank or every banking market.

Reputation

Its impact extends to many other banks, and this produces a very large loss in customers, and money.

Also read: Advantages & Disadvantages of Online Banks

Automatic Risks

The failure of the participants in the electronic money transfer system or the stock market in general and especially in the implementation of their obligations and this leads to the inability of another participant to carry out his obligations in the specified and appropriate dates and these are automatic risks.

Legal Risks

Related electronic signatures and other electronic matters, or the invalidity of the specified terms and conditions, and the lack of enforceability and continuity.

Also read: Tip to Manage your Financial Accounts Electronically

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