España

WHAT WE SHOULD CHECK

Costs of service and profitability

On the one hand, the offers from banking entities operating in Internet are, in general terms, more interesting than those offered by the traditional bank (or those offered by the same entity using the conventional system). This is because with the launch of the new service, they are offering financial products which are more interesting and profitable - as a means of capturing clients and situating themselves in this new market - and which offer very interesting perspectives in terms of high return in mid and long term

 

 
Comisión EuropeaEscuela Europea de ConsumidoresGobierno de CantabriaMAG (Estudios de Consumo) S.L.IFAVConsomation et Logement Cadre de VieAssociation d'avocats

 

This is the first psychological pitfall that online banking brings, that of the user's trust .

Whatever banking entity operating on Internet, it has to comply with the same conditions of solvency and control as the traditional bank

  

However, this implies that, in many cases these banks are offering higher return than they can themselves obtain in the inter-banking market, for which it is likely that they will not be able to maintain this loss producing strategy for a long time. This said there are entities that are limiting the investment per client, with the aim to control losses on the launch of promotional projects

Despite all this, it is estimated that electronic banking will always be in a ready condition to be more generous with its clients, given that costs are inferior to those of bank branches, as much as in property as in personnel costs

Solvency and guarantees

This is the first psychological pitfall that online banking brings, that of the user's trust especially in the case where the entity does not operate with branches, although the fact that the bank does not operate with branches does not necessarily mean that it acts with less strict control. Whatever banking entity operating on Internet, be it a Spanish filial or foreign company based in Spain, it has to comply with the same conditions of solvency and control as the traditional bank

For this reason the Bank of Spain has communicated to the finance entities which operate via Internet the need to adapt Circular 8/1990, on transparency in operations and clientele protection, to the new medium. Thus, the said circular fixes the obligatory imposition for all banks with offices open to the public to have a notice board announcing all the rates for different services offered. This information should figure at the same time, and in some clearly seen place, in its pages in Internet

Also, in those operations in which the aforementioned Circular obliges the bank to hand over to the client a contractual document, the Bank of Spain recommends (as "good banking practice") that when the operation is carried out via Internet, then copies of the contract should be sent to the client