by , on Jun 30, 2021 02:34:46 PM

Introduction

The European Banking Authority (‘the EBA’) is currently raising awareness with regards to the risks which may arise when using online or mobile banking services. A factsheet addressed to the consumers of the EU has been published, and is aimed at raising awareness on the key steps which should be contemplated when choosing online or mobile banking services. 

The Factsheet

The Factsheet puts forward a set of instructions which it suggests that consumers should follow before they choose a mobile or online banking service. These instructions are as follows:

• They must identify their own financial needs;
• They must collect information about the services and read it carefully;
• They must check and evaluate if the online or mobile banking service meets their financial needs and capabilities;
• Then, they must compare other services available from different mobile banking service providers.

Suggestions for the Consumers

The Factsheet then sets out suggestions pertaining to safety which it suggests that consumers follow before they choose the online or mobile banking services. The first suggestion made is that consumers must read and carefully analyse the terms and conditions of the services offered. The terms pertaining to the duration of the contract, the right to withdrawal and the implications of financial commitment. The second requirement is that consumers must pay attention to the fees or charges that they need to pay, as well as any additional costs related to that service.

The security measures being offered by the mobile banking service provider also needs to be considered by the consumer. The consumer needs to be made aware of his rights with regards to the security of personal data and how this data is protected by the service provider. The consumer also needs to be aware of all the activity taking place in the bank account, and shall make sure that he has the facility to report any suspicious data.

The Factsheet then goes on to say that the consumer has the right to file a complaint with the European Online Dispute Resolution (‘the ODR’) if the consumer feels that his rights have been breached by the service provider.

Conclusion

In conclusion, the Factsheet seeks to provide guidance to the use of such services, rather than regulating the online or mobile banking services themselves. It is necessary that the consumer is made aware of his rights and obligations with regards to these services, and it is also recommended that the consumer exercises all due care and caution when using online or mobile banking services.

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