17 December 2014

Craig Ramsey

Craig Ramsey - ACI Worldwide

35Posts 101,608Views 1Comments

Online banking, you don't look a day over 30

19 November 2013  |  2869 views  |  1

The fact online banking hits the 30 year landmark this week may come as a surprise to some, but as with any 30 year old, it has grown and changed significantly since its birth.

The technology has come on leaps and bounds to a point where we’ve seen the move from home-banking terminals, to dial-up via a PC, to broadband, and now the modern cloud via our mobiles. I can still remember my first banking experience, it was home-banking with Lloyds Bank. At the time, it was known as Speedlink and it was the UK’s first telephone banking system, which allowed me to access my account information and conduct transactions, all from the convenience of my home (actually my parents home, I'm not that old).

Whilst I hope that most banks have upgraded their systems in the last 30 years, it seems they have done so without major changes to the customer delivery – which is just as important today as it was then. Banks need to keep up with technology and renovate their systems to embrace changes, but rather than having to continually rip out and replace, can do so by renovating legacy systems with technology that sits on top.

Despite the technology dramatically changing, the basic customer proposition is still the same as it was 30 years ago - customers still want to access their balance and make payments.  When looking at the core services and business functions, online banking is still pretty similar to the original concept. 

But like having a child or getting married when you reach your thirties, what’s going to be the next big step for online banking?  Already this week we’ve seen the Pebble smartwatch accommodate a dedicated banking application.  And this may well be just the first step in banking through our wearable tech.

We’re going to continue seeing new platforms for payment, but regardless of the platform for managing our accounts, the basic premise will remain the same as it always has done – can I access my balance and make payments at my convenience? 

TagsMobile & onlinePayments

Comments: (1)

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 21 November, 2013, 15:35

At the risk of sounding nostalgic, my first experience with

  • online payment was in the late '80s when a leading bank who was my customer installed a SWIFT terminal at its so-called "overseas branch"; 
  • and with online banking was in the early '90s when my employer installed HSBC's Hexagon system for online corporate banking. 

I fully agree that the basic purpose of online banking / payment remains the same. All innovation lies in the "how", not what, of doing them. And, on that count, I fear that we're actually going back in time because of the increased friction caused by the implementation of ever rising security measures in electronic payments.

I recently found myself unable to pay my mobile phone bills with credit card at the MNO's stores and kiosks. For increased security, the MNO has implemented Mobile OTP to authenticate all card transactions. However, ironically, the MNO can't manage decent network coverage within own premises. So the SMS carrying the OTP never reached me and I had to use cash.

Earlier today, an employee of a travel agency told me that ever since their account got debited twice due to a snafu in online payment, their company has taken a policy decision to make all payments by cash. One of their employees goes to a bank branch every day, deposits cash and collects a paper challan as proof of payment. No doubt a roundabout way of leading life but their blood pressure has apparently become normal since then. And to ensure that I paid them in cash as well, they discouraged me from using my credit card with a 2.15% surcharge.

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job title Solutions Lead EMEA
location Watford
member since 2009
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Craig Ramsey has worked in the payments industry for over 25 years, working with banks and software vendors to improve solutions to customers. As Solutions Leader for Transaction Banking at ACI, Craig...

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