How do banks benefit by allowing online banking?

6 Comments

1. johnbntexas says:

   November 13, 2009 at 8:10 am

   reduce infrastructure cost – less tellers and teller stations per 1000 customers (and it is a marketplace requirement )
2. Afraid of Flu says:

   November 14, 2009 at 4:11 am

   Less paper, less mailing, less work force and resources needed, better customer satisfaction.
3. Sittin Sad says:

   November 16, 2009 at 8:33 pm

   Accessability… banks know that if you can access them your account from anywhere you are more likely to take advantage of services offered
4. leathal says:

   November 19, 2009 at 4:09 pm

   adding the service makes more people join.
5. steven z says:

   November 21, 2009 at 2:22 pm

   Less Need for employees, more productivity, and instant transactions without the manual work.
6. Bebe says:

   November 24, 2009 at 9:35 am

   Firstly

   It cuts down on overheads such as

   All those local branches – rent, electricity, staff.
   Centralised banking – only one building, less rent bills etc
   Economies of scale.
   Quicker treatment of customers.

   Geographical mobility means you can move your office to a cheaper country – Central America, India etc – although the level of complaints from customers this generates has lead some companies to move back to the UK.

   Plus they can bombard you with advertising when you go online.