Banking at Barclays Bank in the UK, talks to Rekha Menon, research
and contributing editor of FinacleConnect, the quarterly
banking thought leadership journal of Finacle from Infosys.
The rise of alternative electronic delivery channels for banking
is one of the remarkable developments in the banking industry over
the past decade.
Go deeper with GlobalData
Out of all the electronic delivery channels that have emerged in
recent years, it is the Internet and now the mobile that are
proving to be extremely popular for customers.
In a recent research report, analyst firm Celent predicts that
the adoption of mobile banking in Western Europe should increase
rapidly in major European markets from an average of 6 percent to
25 percent of the Spanish, French, Italian and British markets by
2010.
With over six million registered online banking customers,
leading UK high street bank, Barclays, is one of the front-runners
of the digital banking revolution in the country. In 2007, the bank
also became one of the few banks in the UK to offer mobile banking
services.
Sean Gilchrist, director of Digital Banking at Barclays, who is
responsible for the bank’s Internet and mobile banking offerings,
spoke to Rekha Menon, Research and Contributing Editor of
FinacleConnect, the quarterly banking thought leadership journal of
Finacle from Infosys, about the opportunities and challenges of
digital channels for banks as well as Barclays’ own digital banking
strategy.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGilchrist joined from Barclays Wealth where he established the
online banking team and drove the commercial performance and
development of the Barclays International Online Banking
offering.
Simultaneously he led Barclays Wealth’s fight against online
fraud. Gilchrist has been with Barclays for six years prior to
which he has worked across a range of “blue chip” financial
services companies.
What are the main challenges faced by banks while
offering Internet banking services?
Looking at statistics around online adoption rates, we can
safely assume that online banking adoption rates will continue at a
steady pace.
The challenge is to ensure that the same products and level of
service are offered through the online channel as they are through
other channels such as the branch or telephone banking.
Consumers today regard online banking as merely one of the many
standard services provided by their bank. Multi-channel integration
is therefore essential to ensure consistent levels of service
across all delivery channels.
Although predictions about mobile banking have been
very positive, it has not yet taken off especially in countries
like the UK. Would you say that mobile banking is just a passing
fad?
No! Indeed, mobile banking is not a passing fad! The convenience
of being able to access one’s accounts while on the move is very
real.
The reason for low take up of mobile banking in countries like
the UK thus far is the easy availability of high-speed Internet and
broadband and the high take-up of online banking. In other markets
such as Africa and India where Internet penetration is low, mobile
banking adoption rates are much higher.
Devices like the Nokia N-series and the iPhone offer a dynamic,
rich media experience on the mobile. Once these devices become
popular, the usage of mobile Internet banking too will
increase.
What are the various options for offering mobile
banking services?
Banks can offer mobile banking services through a variety of
ways, SMS banking, mobile browser access, or through downloading of
applications on the phone which can provide a much richer user
interface.
However, it is too early in terms of market maturity to comment
on which is the best option. Lots of banks offer SMS-based mobile
banking; however, we at Barclays have gone down the mobile browser
route.
What are the benefits of browser-based mobile
banking?
Browser-based mobile banking services can be offered from the
same platform through which we offer Internet banking. Not only is
it easier and quicker to implement, we can offer customers almost
the same user interface that they are used to in the Internet
banking service. Moreover, it is available to all customers.
At the moment we are seeing a smallish number of customers using
mobile banking but this number is growing month on month. We are
also in the process of extending our service to offer SMS-based
mobile banking.
Are concerns about security a limiting factor in
mobile banking take-up?
Security is always a concern for customers irrespective of the
channel they are using to access their accounts and is a priority
for banks. Customers want security to be ‘overt’.
The beauty of a mobile browser based service is that it offers
the same level of security as is available for the online
channel.
At Barclays, we offer several levels of online security
protection such as free anti-virus software, two-factor
authentication through a PINSentry device, text alerts and a 100
percent fraud guarantee. We also focus on educating customers about
potential online security issues. Apart from these security
features that are visible to customers, we conduct security checks
behind the scenes as well.
How do you see online and mobile banking evolving
over the coming years?
The adoption of digital channels for banking is set to increase
even further. This growth will be fuelled by the ever increasing
usage of digital devices by the younger generation.
At Barclays over 20 percent of our customers are active users of
digital channels and we expect this to increase further. The key to
enabling continuous growth of digital banking is to offer simple,
intuitive and relevant services; ensure continuous availability of
services through a powerful technology platform; and offer high
levels of security.
