Friday, August 15, 2008

BPN 1190 Dutch bank online massively

In Europe the Dutch are in the forefront of internet banking, according to a recent survey by Forrester. No less than 68 per cent of the inhabitants process their bank matters online. Nowehere in Europe this percentage is that high; as such internet banking is an aboslute success in The Netherlands.

And thi is only the beginning as interbanking still will become more popular. It will almost become an automatic habit for young people, while the elderly people also use internet more frequently. Within five years th number of Dutch that will process thei bankin matters through internet will rise with 1,5 million people. By 2013 more thn 81 per cent will use internet banking.

The success of online banking can partly be explained by the experience the Dutch have with internet. Besides the banks are stimulating internetbanking intensively, as it saves them a lot of data entry work, paper handling and contact work. This eventually leads to less bank personnel and branch offices. It also leds to more customised offers for the clients.

The Dutch had already experience with electronic banking in the pre-internet era. In 1986 the Dutch Postbank, now part of ING, started an experiment on Viditel with a small group of people. This became later the banking service Girotel. In 1987 I changed over to Girotel and have been banking electronically ever since and I have never seen a local banking branche from the inside. Girotel became a success as it recognised that the clients had become data entry typists and asked a modest fee for the service.

Later on the Rabobank started experimenting. By the seventies the major banks were into electronic banking, but usually started with bussiness as first clients.But with the increase of the PC in the eighties more banks started to involve the clients, offering them local PC programmes. The switch to internet banking was only a small step for people used to electronic banking. But as internet yielded many new PC users, internet banking became popular. In the end it has also worked to the advantage of the clients. The money transfer has become real time with transfer internally, while the money transfers between banks has been shortened.

Blog Post Number: 1190


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