Effect Of Digital Literacy On Internet Banking

The use of internet banking has become part of our daily ways of making financial transaction because it makes monetary transaction easy and fast. However, a lot of people are still not taking advantage of the internet banking because the lack basic digital skills needed to perform online transaction.

What is internet banking?

Internet banking also known as online banking is an electronic payment system that enables customers of a bank or other financial institution to conduct financial transaction through the bank website.

Financial institutions has made transaction more easier with mobile banking, internet banking and USSD method of payment so that their customers can transact conveniently and securely from the comfort of their homes or anywhere with out visiting the physical location of the financial institution.

To perform any of these financial institution digital banking payment either through mobile banking, internet banking or USSD smoothly and quickly, you need to be digitally literate. Having a basic digital skills will give the users/customers opportunities to better perform transaction securely.

What is digital literacy?

Digital literacy means having the skills needed to live, learn and work in a society where communication and access to information is increasingly through digital technologies like internet platforms, social media and mobile device.

Having a basic digital skills is key when it comes to online banking because it help users know the rules, risk and steps needed to successfully conduct a secure transaction online. with lots of internet fraudster looking for who to defraud online, it is mandatory to develop your digital skills to equip you with the knowledge of how to identify harmful tools deployed by scammers to defraud you during an online transaction.

Nevertheless, the financial institutions as a duty on their own part to protect customers/users from harmful tools, has various protective mechanism that protect customers in order to perform secure transaction on their website. Such measures are the use of pin code, secret tokens needed by a customer during online payment to complete transactions etc.

Positive effect of digital literacy on internet banking

There are many positive effect of digital literacy on internet banking, one of which is that individuals with digital skills will better carry online transaction securely and conveniently at any time without fear.

Effect of lack of digital skills on internet banking

Individuals can not be able to perform online banking perfectly and easily without basic digital skills and can be easily defrauded online by fraudster