3.4: What are the Different Ways to Bank

Important: It should be noted that all banks may or may not integrate all of the methods outlined in this module. In addition, the number of services* that can be accessed by each method will vary between banks. * i.e. loan applications, bill payments, creating/cancelling standing orders, etc.

Walk In (Personal Visit to the Bank)

 The ‘walk in’ service is becoming the less attractive way of banking although many customers will still choose this method due to their sceptical attitude to the other methods. In addition, customers will also prefer this method for the guaranteed security and peace of mind that may not be as easily integrated into the other methods.

Advantages:

• Bank on a personal basis (face-to-face).
• You will have access to all of the services on offer.
• Guaranteed security.
• Peace of mind that any transactions/deposits have been completed and recorded.
• It does not incur any additional costs to simply walk into the bank.

Disadvantages*:

• Queuing at the bank.
• Bank may not be located close to the customer.
• Opening times may not correspond to the customer’s availability, particularly businesses whose trading hours usually reflect those of the bank.

* The nature of the disadvantages is largely focused on ‘time’ issues. This is particularly damaging to businesses that use staff to visit the bank: their time is paid for.

ATM

All major banks have an ATM network nationwide (global in some case). They are commonly situated outside banks, in supermarkets, at train stations/airports and in shopping centres. The ATM can allow you to view and print your balance, print your recent transactions, withdraw money from your account and transfer money between accounts.

Advantages:

• 24 hour, 7 day a week access.
• Security is integrated (PIN numbers).

Disadvantages:

• Limited amount of functionality.
• Queuing may be likely.
• ATM shut down when they are empty of money (require regular re-filling).
• Security is not at a high level.

Telephone Banking

This method is very effective and allows you to access your account via phone and use some of the services that you can when personally visiting the bank (i.e. pay bills, obtain a balance, apply for a loan, cancel standing orders, etc). The system is usually completely automated: however, operators are available (at certain times i.e. 8am to 10pm) to deal with you personally when required.

You will navigate the automated area of telephone banking by pressing the touch-tone buttons on your phone when prompted. You will have to register before you use telephone banking for the first time to set up personal security details (this is usually a number 6-10 digits long and a few personal questions that only you would know the answer to). Security numbers will have to be entered at the start of each call.

Advantages:

• 24 hour, 7 day a week access.
• Many of the banks have a free phone number.
• Can use telephone banking anywhere if there is a phone.
• Security is integrated.
• No need to queue as you would at a bank

Disadvantages:

• Some services cannot be accessed via the phone.
• Level of security may not be trusting to some customers.
• You cannot deposit physical cash using telephone banking i.e. cheques, cash in hand. This would require a personal visit to the bank.

TV Banking

Digital Sky TV subscribers can bank via their TV if they are a HSBC customer – they are the only providers* of TV banking at present. By pressing the ‘Interactive’ button on the sky remote, you can access the HSBC banking page (after going through the right navigation channels) and access a range of service information. In addition, after registering to use the service, you can view your balance, transfer money between HSBC accounts in your own name, pay bills, and make changes such as cancelling standing orders/direct debits/cheques.

For you to access your account, your Sky TV box must be connected to the telephone system (usually connected when Sky TV is installed). If the connection is broken or damaged, the customer will not be able to access their account. You will be charged a fee to access your account via the TV: charged by the minute.

Advantages:

• 4 hour, 7 day a week access.
• No need to queue as you would at a bank.

Disadvantages:

• Limited use of your account compared to other methods.
• Costs are incurred when accessing your account (charged at local rate).
• There is no personal interaction between yourself and the bank (employee/advisor).
• You cannot deposit physical cash using TV banking i.e. cheques, cash in hand. This would require a personal visit to the bank.
•  If your Sky TV system fails to function, you cannot access TV banking.

* HSBC is the only provider. However, some internet banks allow customers to bank via TV.

Internet Banking

If transferring money online, the money will usually be transferred over-night if being transferred to an account within the same bank. However, if you are transferring money to an external account, it can usually take over three working days to transfer.

Advantages:

• 24 hour, 7 day a week access.
• No need to queue as you would at a bank.
• You can access your account at any computer with Internet access.
• Security is integrated.
• Applications for a majority of popular services can be made on-line i.e. loans, savings accounts, mortgages, etc.

Disadvantages:

• If your internet connection fails to function, you cannot access Internet banking.
• There is no personal interaction between yourself and the bank (employee/advisor). Internet banking can be slow with a 56k modem.
• You cannot deposit physical cash using internet banking i.e. cheques, cash in hand. This would require a personal visit to the bank.
• You still have to visit the bank to obtain cash and/or use an ATM to withdraw cash.

PC Banking

PC banking is similar to Internet banking. The main difference is that you do not use the Internet to access your account. Instead, from your PC, you connect directly to the bank’s intranet using specialist software, modem and existing telephone line. In general, PC banking allows you to perform the same degree of functionality as Internet banking. However, PC banking is potentially faster than Internet banking and offers increased security, therefore allowing you to access more services.
Again, not all banks offer PC banking

• You pay for internet connection costs when using the service. g. A fee may also be paid to use the service.
• Consult your bank for more information.

Advantages:

• 24 hour, 7 day a week access.No need to queue as you would at a bank.
• A higher level of security compared to Internet banking.Potentially, more services can be accessed due to increased security.

Disadvantages:

• There is no personal interaction between yourself and the bank (employee/advisor).
• You can only access your account from the PC that you originally installed the software.You cannot deposit physical cash using internet banking i.e. cheques, cash in hand.
• This would require a personal visit to the bank.