UK banks' skepticism and hesitancy about the role of the internet within their businesses has placed the sector behind all others in Europe in e-commerce, according to research commissioned by Cisco and Oracle.

The research, which has been endorsed by the Institute of Directors (IoD), has found that banking directors are aware of the internet's importance, but still lack faith in it as a secure business or customer support channel.

Although 62 per cent of banking directors said they would need to sell direct to customers over the internet, 57 per cent felt that it is still too insecure.

While seven in 10 respondents agreed that improving customer service was key to the survival of their business, 40 per cent thought that internet service and support was not suitable.

Indifference to learning about best practices in e-commerce was also revealed by the survey, which found that nearly half of UK directors have never had a technology briefing, despite the opinion of 83 per cent of respondents that the internet could make their bank more competitive.

Jim Norton, director of e-commerce policy at the IoD, said: "This 'net scepticism', which has made banking lag behind all other sectors in e-business, should be a surprise.

"The banking sector is usually noted for the early adoption of technology.

Many e-investments are large but hampered by a lack of end-to-end integration," he added.

Norton said that institutions were investing in maintaining existing systems, and sometimes regard replacement projects as "too hard, risky or daunting". He added that this conservative and traditionalist approach among retail banks must be overcome if they are not to run the risk of losing business.

Norton believes that there is the added risk that banks that are normally at the cutting edge of technology could drag the rest of the e-business industry down towards less satisfactory technological solutions.

See also:

LloydsTSB acts to improve online service

Amid much criticism of high street banks' treatment of online bankers, LloydsTSB today announced measures to ensure that its internet customers get the same level of service as its telephone customers.  15 Aug 2000

Net banks criticised over fraud protection

Several prominent UK internet banks have been criticised for leaving customers to clear their name, or pick up the bill, if they fall victim to online credit card and bank fraud.  05 Jul 2000

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!