Internet Banking The Way Forward For Irish Consumers As TSB Launches 24 Hour Service

Lisa Ugur, Tax-news.com, London

02 April 2001

Ireland's TSB Bank, the fourth largest retail bank in the Republic, has launched a new 24-hour Internet banking service in Ireland called TSB online 24, which is available to all customers with telephone banking facilities. The move comes as Forrester Research, a US-based research firm, released a report which states that attracting customers and their personal computers are the way forward for retail banks, which will face problems unless they are able to offer a core Internet service embracing transactions, financial management and financial advice.

Indeed, TSB sees Internet banking as an important channel for its services. Via TSB online 24, customers will be able to check their bank balances, access online statements and carry out bill payments over the Internet. The service also allows customers to transfer funds between TSB accounts and search records of cheques and payments made from their account. Charges will be the same for online transactions as for offline ones.

TSB online 24 follows in the footsteps of other Internet banking services offered by the major Irish banks, including Bank of Ireland with its Banking365 venture and AIB's 24hour-online, both of which were launched in 1997. Both have been successful, probably because they combine online banking with the benefits of branch contact if needs be, so the future looks good for TSB online 24.

According to Forrester, customers should be encouraged towards using a main channel - PC banking - and all other channels, including telephone banking, should fulfill a supporting role. Nearly all of Ireland's major banks have Internet banking channels although standalone offerings are faring less well. Growth has been most significant in online services provided as an integral part of Irish banks' main services. This could well be because customers are tend to steer towards established brands rather than into uncharted territory. Hence AIB's recent move to abandon its stand alone banking venture and other banks' reluctance to venture into the area.

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