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What is the real damage?

Media so wish it would be true..

internet banking will increasingly happen in mobile devices as devices become more of computers - even if the e-banking-on-PC-habit prison in the developed world is difficult to escape from.

One day the mobile devices will replace plastic cards of all sorts and that is naturally an important part of banks' customer service. Even before that my prediction is that notifications to the omnipresent mobile (for e-invoices, balances, transactions etc) will be major development.

In the old days - especially in the 80s before Internet - e-banking was seen as a supplementary channel - in addition to branches and contact centres. Today it is the main channel for almost all services - both for the customer in his private role and in employee roles of so called corporate customers. All banks have not yet adjusted their strategies accordingly...

more in my blogpost some time ago

Cheques were abolished in practise here in Finland in 1983 - by introducing the equivalent of 8 cents fee per form.

It is time to move forward all over the place from this slow and expensive method of payment.

Report will be made public early next week. Key element for making unification and simplification an is fast adoption of VAT directive. Will revert later.

How big is it in your country? 54 bn in Germany (b2b only?), Finland 2,8bn (b2b only)....

Thank you Jonathan,

Impressive paper - I will read it as soon as I find the time. I do agree that there will be changes. Large enterprises have quite different needs from the SME-segment where basic banking is much like it is for the consumer - with the difference that they also need to send - not only receive e-invoices. Automated accounting and cash management services should also be offered.

Agree that 2-factor is a must - should have been from the beginning. Our launch in -82 at Union Bank of Finland (now Nordea Bank) was with 7-9 digit customer number and one-time code based on printed list mailed to customers. In late 80s the necessary promptdriven confirmation code at log-out after payment or trading was added. No security problems experienced.

Various card readers, calculators and mobile phone solutions for producing the one-time-code have been considered by banks in Finland - but so far the very marginal improvements have not been deemed sufficient in relation to the cost and inconvenience incurred. Phishing is not an issue any more as media made such a fuss about a very limited case that customers learned not to send OTCs in e-mail to anybody. Sometimes media can after all do good - even if it was not their intention.

As Internet usage is already at 100% in sub 44 groups and the habit will stick when they get older - and the > 65 are moving in with gusto now it is logical that also e-banking is moving towards 100%. 

http://boharald.blogspot.com/2009/10/internet-users-by-age-group-in-finland.html