An Examination of Online Banking in the United Kingdom
In the UK, many banks and building societies are attempting to
capture a sizeable percentage of the online banking market
share. And it seems that the UK consumers are benefiting from
this competition most. Online banking in the UK is getting big;
there is no doubt about it: 6.5 million consumers are online
banking customers. And that figure is projected to rise every
year--not because of bank closures--because of the ease that
online banking offers. Everyone can say that it is easy and some
people may still be dubious about that. But to anyone who is an
online banking customer, they will know just how easy and simple
it is.
Before choosing an online bank to open an account study
carefully what services the bank allows you to do online. Also
check the accessibility of talking to a live person. Make sure
the banks internet site allow you send secure emails.
The UK, like any other country, has banks on every street
corner. And these banks try to lure new customers in with big
bright signs: "apply now and get a 6.9% APR rate on your card!"
When you are on the Internet, these banks take the same
approach. On their websites, there are banners that banks use
for advertising space because they recognize that so many people
are using online banking; and that they need to emphasize their
competitive advantages to draw customers over the Internet.
Some major U.K. banks have opened independent online banks such
as Abbey National with www.cahoot.com. There is also
www.smile.co.uk the online bank of The Co-operative Bank.
Despite all of the advantages to online banking in the UK, not
everything is perfect. One in twenty consumers will fall victim
to online fraud; and when they do, it will cost them big time.
The UK's fraud cost last year was