Online Banking

MARKETING SERVICES: First Direct Branchless Banking

Q4. What are the pros and cons for First Direct of moving into on-line home banking services? What are the implications for its relationships with customers?

First Direct Banking will be able to offer the following Pro’s if they incorporate online banking:

PROS:

• Convenience: Unlike your local bank, online banking sites never close; they're available 24 hours a day, seven days a week and they're only a mouse click away.

• Ubiquity: If you're out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business 24 hours a day.

• Transaction speed: Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.

• Efficiency: You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site.

• Effectiveness: Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Microsoft Money.

First Direct Banking may also suffer the following Con’s through the introduction of online banking:

CONS:

• Start-up may take time: In order to register for your bank's online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney before the bank will display all of your holdings together.

• Learning curve: Banking sites can be difficult to navigate at first. Plan to invest some time and/or read the tutorials in order to become comfortable in your virtual

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