Online banking is getting more popular in the wake of the coronavirus pandemic but NBC 7’s Consumer Bob says there are still some things to look out for.
The coronavirus pandemic shut down many parts of our lives. We even had to change the way we used essential services like banks. That's why there has been such a large increase in the number of people using online banking tools.
"In the last month, the percentage of older Americans using online or mobile banking was as high as 80%," said Ken Tumin of bank comparison site Deposit Accounts.
Their survey showed that 91% of people say they have used online or mobile banking and more than half of respondents say they are making fewer visits to physical locations.
"With the older generation being more affected by the pandemic, more at risk, it's made mobile and online banking almost a necessity," said Tumin.
"It's a great time-saver," said Mary Beth Storjohann of Abacus Wealth Partners. "Online banking used properly will make you more knowledgeable with what's happening with your money."
Storjohann says look at what features your bank provides. Some places will have different fees for online banking versus in-person.
"You want to understand what it's costing you as a consumer to do your banking with this company," said Storjohann.
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She also says while online banking is an incredible tool, you still need to be on the lookout for scams. She suggests using security features like two-party authentication and making sure your computer's software is up to date.
"Regardless of whether you're using online banks or online banking features, you're still going to have to worry about the potential of data privacy issues," said Tumin.
He recommends regularly checking your accounts and never logging in to sensitive sites like a banking platform over public WiFi. Tumin says online banking will only continue to grow in popularity.
"Once they get used to the features of the mobile bank I think they are going to be doing less branch visits," said Tumin. "Even when the pandemic is gone."
