Tradition vs Technology: Chequebook and Digital Banking
As we progress with our review of tradition vs technology, this week we highlight and compare modern day digital online banking and the traditional chequebook. Online banking has multiple benefits, streamlining the way in which we manage and see transactions, but do the benefits outweigh the negatives? and if we call this progress, how valuable is it? Is the chequebook to be consigned to the history books and if so when does the debit card takeover - completely?
The chequebook and the making of payments by way of a negotiable instrument had been the fundamental of banking for a long time. Cheques have been written on all sorts of paper, parchment and various oddities from time to time, even livestock! The fundamental of banking laws were founded on the making of payments by way of a non-negotiable instrument. Do you remember 'crossing' cheques so that they could not be negotiated (made payable to a different payee) onwards? Do any of you operating a business know the banking laws by which you protect your most valuable asset, cash?
Monthly statements on paper, paying in books and all of the associated letters and paper trails have been the core aspects of having a bank account. What would we do without these? We would have to store our electronic versions somewhere (in the 'cloud') along with all the passcodes and secret identities by which we access, allow and validate our instructions. Is our signature no longer good enough?
The new digital age and online banking system means that we must:
- Formulate lots of individual and personal codes and words - using your mothers maiden name could soon be a thing of the past.
- Learn how to create unique codes and regularly change them to defy the hackers - According to Watchdog, thieves drain our bank accounts of more than £300 million pounds every year.
- Keep track of our account much more regularly to ensure that no-one is gaining access
- Keep personal tight control of the cards most likely to do you most harm
- Ensure that no-one is looking over your shoulder as you enter your PIN number at a terminal
Until such a time when security is watertight, using personal human DNA, such as fingerprints or eye iris recognition then we are all likely to be subject to some fraud at some time in our lives.
The digital age is here and we urge our masters controlling the security of our accounts at our banks to enable us to feel and be secure. Stories are recounted frequently telling us of a fraud, and while banks cover us for fraud, the frequency of such attacks is alarming.
Those under 30 probably are likely to not own a cheque book, let alone a paying in book. What is the point, paper statements need storing somewhere and shredding at some stage in the future.
The digital age brings reform in the hope of practicality, but unfortunately new issues exist. Are these advances for the better for us all or just mainstream businesses?
Next week I will be discussing 'How we used to use the phone'. In the meantime, share any comments you have on this article below and connect with me on: Twitter – Facebook – LinkedIn. For insight into the behaviour and characteristics of entrepreneurs read Drive Like a Real Entrepreneur.
[Main photo credit: Got Credit]