We have been analyzing procedures and processes for Online Banking and Mobile Banking. Specifically we are reviewing the number of days of inactivity before an Online or Mobile Banking account is deleted from the system. What is the risk in allowing these accounts to remain open?

Like any dormant/inactive account there is a chance of abuse because of its status. Otherwise nothing comes to mind that is a particular risk because of the e-access.

"Specifically we are reviewing the number of days of inactivity before an Online or Mobile Banking account is deleted from the system. What is the risk in allowing these accounts to remain open?"

Make sure you review what your on-line or mobile banking agreements say about cancelling accounts. You don't want to be cancelling these agreements without proper notice or in accordance with your contracts.

Good point Randy.

I know many banks pay vendors based on accounts enrolled and they like to purge non-users. That period that warrants the boot should be in your agreement, and monitored.

For bankers doing this, what period of inactivity do you allow?

That is logical to me. There is no reason for the bank to accept risk when there is no intent of use.

If you are just removing online access but still maintaining an actual account, make sure that you provide them with paper statements if they previously were receiving statements through their online banking.

Excuse me for the resurrection of this topic, but our system doesn't really delete the online account, just makes it inactive, we still maintain the account.

Do we need to convert these customers to paper statements once they go inactive online?