The European Banking Authority (EBA) has released new advice for consumers when choosing an online banking or mobile banking services.
Its latest document covers various tips to ensure a consumer can make a more informed decision before entering a contract. The key points are reading and understanding all aspects of the terms and conditions, making a note of all fees and charges, thinking about security and filing a complaint if they feel their rights have been denied.
The factsheet will be reproduced by each national authority of member EU states.
This release helps meet the EBA’s obligation to supply financial education and consumer protection to the market.
Online security is a major threat for everyone and with the high levels of fraud and cyberattacks, a consumer needs to ensure their money is well guarded. The EBA states a consumer should inspect how an online bank handles and protects their sensitive personal data. They should also check the provider’s identity and legal status of the bank and confirm the bank is authorized to provide the services it claims.
Challenger banks are cropping up across the world, giving consumers a wealth of options. Since 2014, there has been nearly $6bn invested into challenger banks around the world, according to data by FinTech Global.
The UK has established a very strong ecosystem for digital banks, with major players including Monzo, Revolut, Starling, Tandem Bank and others. The appetite of the country for challenger bank can be seen by the amount of capital raised by the players in the market. The six biggest companies in the UK have raised £1.3bn since 2014.
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