The Lagging Development of Small Business Internet Banking in Australia

Abstract

The most recent technological advance with the potential to revolutionize the financial services industry worldwide is Internet banking. Given that on-line banking transactions cost substantially less than physical branch transactions, banks throughout the world are rushing to develop their Internet strategies. This is a boon for home banking consumers, who can now enjoy more convenient and timely access to funds at lower cost (Harper 1997). Furthermore, on-line mortgage brokers, such as e-loan and mortgage. com, are reshaping credit markets in the U.S., Europe and Asia. While Australian financial institutions have been slower to join the Internet banking trend, almost all banks and other financial establishments now offer on-line banking facilities or are planning to do so in the near future. However, Australian financial institutions are primarily targeting their Internet banking strategies on the personal home banking segment. The small business segment has been largely ignored.