Internet-banking vs bank affiliate: who will win?
People, who being now adult, used to live in soviet times, certainly remember what any bank transaction looked like in that times. It was needed to come at certain time to the affiliate of Saving bank, stand in a line for certain time, fill up a heap of forms and only then one could pay some tens of soviet roubles for municipal services, etc.
Certainly, both western banks and first commercial banks in CIS countries tried to search possibility to free clients, and employees from papers and handwork.
First projects, connected with control of bank accounts from the client’s PC appeared in the middle of the eightieth years. Having connected through a modem with the bank’s host computer, a client could obtain information about his account’s balance. Such systems got the name ‘Home banking’. With growth of availability of the Internet for the wide user, leading banks began to develop account control systems through the Network. Interestingly, that already in 1997 the first fully virtual bank was opened - Security First Network Bank. However, it did not work long, because failed to deserve the trust of customers without real bank infrastructure. Other similar banks failed too.
Internet-banking should substitute bank affiliates
At present any large bank offers services of Internet-banking (IB). In most cases, the electronic digital key may be needed for using IB services. However, some banks for use authorization offer two-factor authentification ( as usual a password and SMS).
Internet-banking has to gradually substitute “brick” bank affiliates, many bankers say. Ukrainian banks have to gradually decrease the number of affiliates, because their number is much higher then in western banks. Online banking should substitute “brick” bank affiliates.
Internet-banking will never replace the “brick” bank affiliates
But, in spite of seeming simplicity and comfort of Internet-banking - access to the account 24/7 from any place - the number of its users is not too great in Ukraine yet. Accordingly to the data of GFK Ukraine, 1.3% inhabitants of Ukraine used Internet-banking in the end of 2011. It is the lowest index among all European countries. Some experts say that the reason is in peoples’ habit. New technologies did not succeed to break ice of mistrust among the bulk of populations. Though all security problems while working with Internet-banking are already solved. Most customers are simply accustomed go to the bank’s affiliate to make any payment, even if its amount is very small.
Internet-banking will never replace “brick” bank affiliates, some experts say. To pay for the apartment one can via the Internet. But to get a large loan, or put money on deposit one has to go to the bank. For this reason some banks increase the number of their affiliated until now.
Low popularity of IB could be explained as well by low penetration of Internet in Ukraine (ap. 40%). Together with the increase of the level of Internet penetration, it will also grow the number of users of Internet-banking. In addition, getting electronic digital signature needs additional expenditures. Therefore, banks should offer suitable conditions of IB for their clients.
Translated by Valeriy Stepanenko