PracticePeople In PracticeEurope leading the way for online banking

Europe leading the way for online banking

The UK online banking market is set to steam ahead of the US, according to consultancy Cap Gemini Ernst & Young, but in the heat of competition, both sides of the Atlantic seem to have forgotten all about customer service.

A report by the analyst predicts that by 2003, 25% of all banking transactions will be carried out online. The current figure stands at four per cent in the UK and only three per cent in the US.

However, security and customer service seem to be getting the thin end of the wedge, with only 17% of UK banks citing security as a priority.

The report also found that 59% of emails were not replied to within eight hours, a figure seen to indicate a lack of interest in customer service. The US figure stands at 64%.

Time to market is the hottest topic amongst the banks, with 36% claiming it to be a major concern.

The report said that such shortcomings meant that high street branches would still survive.

Jonathan Charley, vice president of financial services at Cap Gemini Ernst & Young, said: ‘Despite the hype, internet banking is not expected to replace the need for branches. Many customers still feel the need to do their banking in a face-to-face environment, and simply do not trust an internet-only service.’

This story first appeared on /A>

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