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The Internet is changing the way of life and this includes the way we currently bank. The last couple of years has seen drastic improvements and changes from traditional based banking toward more convenient, preferential rate on-line banking and the services it offers. The effects can be seen as positive with increased services and convenience to suit the way we live today but negative also; with drastic consequences on bank shareprice and fears of staff cuts and extinction of branch based banking services. The banks have seen a sizable reduction in shareprice in the past few months but now seem to be on the path to recovery, while the branches are closing daily with increasing reductions of branches within both rural and urban areas maintaining competiveness and reducing costs. The reality is that the shareprice will probably recover fully in the future but the branch system is destined to erode with more and more customers moving with technology from traditional to on-line based transactions. Branch staff realise the Internet is a major channel provider for banking services and in the future see themselves take more of a marketing and advisory role. Banking in the future will change dramatically due to virtual banks, mergers of existing banks, mergers of banks with service providers, Pan-European banks are also probable in the future. Banks will join forces and activities to reduce costs and in doing this will increase size strength and service offering to survive vigorous competition.
