Online Banking Review

Key Note, a marketing research based company compiled a report in 2008 called ‘Electronic Banking Market Assessment 2008’. In the section of attitudes towards Internet banking, Key Note conducted a series of consumer surveys. Their findings concluded that out of their respondents, ‘40% of respondents said that they liked to manage their money using the Internet. Men were slightly more likely than woman to use this channel. Use of the Internet was highest among 20 to 24 year olds; the same age group was also more likely to have started using online banking over other age groups. 52.7% of respondents contact their bank once a month electronically, 35.7% did this once a week and 28.1% rarely contacted the bank’. (Key Note, 2008) Their findings allowed me to narrow down the research topic to target the most popular age group allowing me to investigate why people in the 20-24 age group are more likely to use the online banking functions. Although the convenience and concept of online banking seems to be flawless, there is without a doubt occasions where it has caused frustration to customers. In a letter sent to the Guardian Newspaper (2009) from H, it tells of his story of his troubles with the system. ‘I lost money when making an online payment to my mum’s MasterCard. I put in the correct card number but the wrong sort code, so 350 pounds went to someone else’s MasterCard. My bank, though sympathetic, said it couldn’t do anything because it was my error. I couldn’t agree with them more, it was completely my fault.’ In H’s short letter to the newspaper, it has highlighted that a small error in filling in details for recipient has resulting in him in losing money to somebody whom cannot be ‘refunded’. Although he concedes that it was his own fault, it probably makes a prospective online banker think twice before signing up. Therefore I will aim to use qualitative interviewing to identify how my respondents feel towards the whole process of online banking.