Customer Attitude to Online Banking Services in the UK - Dissertation Example

In retail banking services, online banking is a relatively new phase and still many people are not properly aware of the offerings of online banking (Peevers, et al. 2011). There are different services that online banking offers to the customers so that they can perform their transactions and can request the information of their accounts. This includes the “inquiry of balance, transfer of accounts, payment of bills, ATM card pin code”, and many other services that the banks are offering (Aladwani 2001).

The successful key for developing economies is information, and most companies are thinking of switching their businesses from physical to online technology (Akinci et al., 2004). There are many factors responsible to influence the preference of the customers in terms of online banking, and it is very important for the banks to understand these factors for providing improved services and retaining the customers (Burke 2002). The customers are very conscious regarding the usage of online services of the banks in which some of the factors includes security issues such as internet robbery, availability of the internet, and education level of the customers for understanding the online procedure of banking, etc.

(Howcroft, Hamilton and Hewer 2002). When the organizations take the decision to provide internet services to the customers, it is relatively different from the technology change if it is linked with the past studies. The bank can offer many products to the customers with minimum cost because the internet setup does not need large investments as compared to the physical branches (Arunkumar 2005).The banks retain their customers with the help of CRM, and every individual customer's preferences and needs are given first priority by the banks.

Different products and services are developed by the banks to deal with the particular needs of the market segment. Setting up many channels at the level of enterprise gives the bank a complete view of the customer and they can retain them by not only giving them the required services but also showing their concern to the customers (Russ 2006). This shift in technology has forced the banks to change their traditional operations and use innovative technology so that customer satisfaction and convenience can be achieved (Sohail and Shanmugham 2003).

The customers can perform the financial transaction with help of the internet by using any computer system in which the internet is available.