Online banking ‘could lead to communications breakdown’

The widespread use of online banking services could leave some consumers facing financial difficulties as a result of a breakdown in communication, according to Chris Tapp, deputy director of Credit Action.

Mr Tapp, whose organisation operates as a money education charity in the UK, suggests that while internet-based banking services can make certain aspects more effective, there is a risk that customers will lose out on the benefits of face-to-face advice.

And in some cases the issue could lead to debt management difficulties, claims Mr Tapp, who makes clear that banks that offer personal loan comparison services are likely to point consumers firmly in the direction of their own offerings.

“If there are things that they [consumers] don’t quite understand, it can be harder to find somebody to speak to about it,” he said.

“Or people might be less likely to look for people to speak to about it, because they think: ‘I can just go on the internet and do my own research’… [but] you don’t know whether the research you’re getting is good.”

Credit Action figures released earlier this month showed that the UK’s overall debt management mountain is now worth more than £1,345 billion.