MP2 FA L2.5 & 2.6 P2P/Online Banking/Unbanked

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What is online banking?

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Online banking is a digital platform that allows customers to conduct financial transactions via the internet, including checking balances, transferring funds, and paying bills.

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What is a convenience of online banking?

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Conveniences of online banking include setting up automatic alerts for low balances, transferring money between accounts, and monitoring account balances.

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What is a disadvantage of being unbanked?

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High fees for check cashing and money orders are significant disadvantages for individuals who are unbanked.

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What is online bill pay?

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Online bill pay is a service that allows customers to pay bills electronically through their bank's website or app.

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What is a benefit of online bill pay?

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Benefits of online bill pay include meeting payment deadlines and the option to pay electronically or via paper checks.

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What are alternative financial services?

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Alternative financial services are non-traditional financial services that provide options for managing money, often used by the unbanked.

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What is a key benefit of using alternative financial services?

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Increased access to financial services and opportunities to build credit and financial stability are key benefits.

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What precautions should be taken when using P2P payment apps?

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Precautions include using secure methods like fingerprint or face ID, setting transaction alerts, and only using the service with known individuals.

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What is a misconception about P2P payment apps?

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A common misconception is that the money sent through P2P apps is 100% insured and will be returned if a mistake is made.

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What is a service charge in banking?

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A service charge is a fee that banks may charge for maintaining an account or for specific transactions.