Jan 20
According to a survey conducted by PrincewaterhouseCoopers (PwC), around 69 percent of the surveyed people use internet to buy financial products. It has been predicted that by 2015 digital banking channel will overtake the conventional branch banking.
The bank branches have witnessed a fall in footfall in last few years because of the introduction of digital banking. Facilities like internet banking and mobile banking have found mass usage among the bank customers.
The banking system in the country has galloped a long way in last few years in terms of technology. Technology has found unprecedented utilization in the banking space and as a result of it a lot of new prospects have come up in the space.
It was also found in the survey that banks have been slow to respond to the demands of the customers of digital banking. Hence, the banks still have a long way to go in the direction.
Tags: Banking, Digital Banking
Nov 24
The chairman of the Financial Services Authority (FSA), Lord Turner, has criticised the current system of free banking in the UK, which was first introduced in 1985, claiming that it damages both competition and customers.
He also argued that it presents a barrier to new entrants in the financial services industry, preventing full competition and providing an incentive to lenders to mis-sell products to the public.
Lord Turner told the Treasury Select Committee (TSC) “It is the case that free-if-in-credit banking does create a bit of a barrier to new entrants. The current account … is essentially a loss-leader … which banks provide in order to get hold of a relationship on which to sell other products. Because of that, there is a desire for them to sell products that are not appropriate.”
He added “It is also the case [that] a loss-leader makes it more difficult for new entrants because they can’t make a profit just out of the core product ? Read more…
Tags: Banking, Free Banking
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