E-Banking Application and Issues in Abbey National Plc

Abstract

The financial service is facing a new delivery challenge in the shape of the Internet and e-commerce (Akamavi, 2005). The Internet as a channel for banking service delivery is fundamentally different from other channels such as branch networks, telephone banking, or automated teller machines (ATMs). The term e-banking is often used interchangeably with online banking, Internet banking, and PC banking. For example, Pikkarainen, Pikkarainen, Karjaluoto, and Pahnila (2004) define online banking as an Internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments. A bank’s Web site offering only information without possibility to conduct any transactions is not qualified as online banking. Lbbotson and Moran (2003) use the term “electronic forms of banking”, which includes telephone banking, PC banking, and Internet banking. In line with this definition, Lassar, Manolis, and Lassar (2005) refer e-banking as various formats or technologies, including telephone banking, direct bill payment, electronic fund transfer, PC banking, and online (Internet) banking. In this article, e-banking is referred to Internet banking or Online banking that it must enable Internet based transactions. This distinguishes e-banking from other electronic-based remote banking. E-banking can be carried out anywhere from a device with an Internet connection and it enables access to account information and conduct online transactions. E-banking brings up unique types of challenges and requires novel solutions (Shah & Gupta, 2005; Southard & Siau, 2004). This article reviews how e-banking has been developed in Abbey National PLC (Public Limited Company) with a focus on the important issues when implementing e-banking applications1.