Banking

The introduction of new technologies has changed the relationship between the banks and their customers and has consented a faster development of new products and services. However, online banking users should watch out for some key differences and issues as outlined below.

On-line banking – what you need to know

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Financial services online

Practically all the operations that can be done in a branch office are virtually offered via telebanking or via internet banking.

These include most commonly the following operations:

Opening and closing a bank account;
Operating the bank account: withdraw money, make payments, wire transfers, intra-account transfers, etc.;
Ask for information and/or formalise financing operations and payments related therewith;
Ask for a credit/debit card (or transfer some money from them);
Ask for information regarding the possibility of an investment or the purchasing of any type of insurance which is offered by the bank - in such a case, the bank usually asks the client to set an appointment and meet a bank official;
Manage any other banking operations, such as requesting foreign currency - this will then be collected from the branch, cheque book, change of contact information, change of password, etc.;

Credit institutions or banks increasingly aggregate services, so that through their websites, client may carry out other electronic commerce operations, such as mobile phone recharge.

What are the key features of good online banking?

No physical presence of the customer in the office is necessary to do specific operations; all is done through the web page or by e-mail (or, at least, by telephone or ordinary mail);
The customer needs a good service for answering questions and queries. A Frequently Answered Questions (FAQs) section is a plus;
The bank’s website must be extremely user-friendly; one need not be IT proficient to understand how to use it. Additionally, customers who do not have broadband should be considered: web pages must be downloaded quickly; -* All the procedures must be easy to execute, always accompanied by clear information. Furthermore, the client should always have the possibility of printing the record related to the transaction executed. The user must be aware of the charges levied for any operation and have the option to verify these and to rectify the information before making it definitively;
The security of the service is essential; accounts management, transaction activity and information requests must be made in a safe page;
When you open a bank account with a foreign bank which is not present in Malta, be sure the bank really exists: it must be approved by the national regulatory body e.g. the Malta Financial Services Authority in the case of Malta;
If you are managing a bank account which you opened with a foreign bank situated in any EU country and you opt to make some bank transfers to or from that account - keep in mind that the requirements to manage an account and the charges related thereto vary from one country to another. However EU has adopted some common rules, the practical effect of which is that a cross-border payment in euro is subject to the same charges as the corresponding national payment in euro;
Check that the bank is covered by a Depositor Compensation Scheme;
Just in case you have problems with foreign Banks, you can be assisted by the existing national complaint schemes for financial services, joined together in a cooperation network: the cross-border out-of-court complaints network for financial services (FIN-NET).

Main recommendations for on-line bank users

Read the contracts very carefully before signing them;
Keep the password and internet codes in a safe place:
- Codes (passwords as well in some banks) allow customers to operate on-line banking;
- As soon as the password and codes are received by the customer, they should be changed to ones which are easier to remember. Do not misunderstand this: it should be easy for the user to remember but difficult for someone else to guess. So do not use birth date, car license, etc.;
When you finish using the on-line banking web page, you should always use the option to disconnect immediately;
If you are accessing the online banking services from a public service, make sure that nobody is overlooking when you enter the password and/or code in the web page of the bank;
If you use a shared computer, make sure that the option for “remembering password” in the browser is switched off when you access your bank’s webpage;
Never introduce any personal or security (key) data in surroundings that clearly are not identified as secure. Make sure that the address of the web page (URL) which appears in the navigation bar begins with “https”; and that in the bar of the browser a closed padlock appears;

Never provide passwords/keys/codes to another person (even employees of the bank). Multiple frauds (called phishing) have been detected to steal data and some times is difficult to distinguish from a real banking communication. The most frequently used antivirus programmes include a phising option, which should be activated so as to reduce this risk.

These recommendations are very important. There is a lot of fraud in the network, and the risks are high if you are not careful – your money, credit, debt, reputation is at stake.

Glossary

APR - Being in debt - Bonds - Childrens Savings Account - Collective Investment Scheme - Debt - Currency - Deposit - Depositor Compensation Scheme- Financial Planning - Fixed Account - Foreign Currency Account - Hire Purchase - Interest Rates - Investing - Liquidity - MFSA - Making a profit - Maturity Date - Money - Notice Savings Account - Online Savings Account - Penalty - Per Annum - Risk - Saving(s) - Savings Account - Savings Account Named in Euro - Security - Securities - Shares - Withdrawal