Banks see future in Internet banking

MANILA, Philippines - One of the major features of banking today, and in the near future, is convenience banking, be it for the corporate or consumer segment.

That means not having to visit the bank’s branch, have to deal with volumes of paper work, or even going to the automated teller machines (ATMs). Instead, bank clients are maximizing the telephone, computer, the Internet, and mobile phones.

“Our penetration rate for Internet banking rose from 15.1 percent in 2007 to 23 percent, as of the first quarter of 2009,” Jaime L. Araneta, senior vice president and E-banking head for Philippine Savings Bank (PSBank), pointed out.

PSBank already services 23,000 client via its remote banking systems, meaning the telephone, the computer and mobile phones.

Bank clients save on time and effort, while increasing efficiencies in terms of documentation and cost savings. The branch meanwhile reduces over-the-counter transactions thus freeing up more personnel for in-branch marketing and sales.

Todate, PSBank operates 164 branches and 168 ATMs nationwide.

“We started applying information technology (IT) for internal development in 2005, and went public or offered electronic and convenience banking two years ago,” Araneta told The STAR.

He further explained that their costs for acquiring software and hardware was helped along by being part of the Metrobank Group of Companies.

The first world nations are already doing it, and it is just a matter of time before emerging markets, like the Philippines, takes full advantage of electronic and convenience banking.

In fact, studies made by AC Nielsen show that the population is embracing the electronic world.

In the past three years, or from 2006 to 2008, the use of DVD/VCD/VCR player, mobile phones and home Internet access dramatically grew versus that of television and radio.

Survey shows over 30 percent are home computer owners, and a quarter of the same have Internet access in their home computers. The same is likewise reflected in the continuous expansion of Internet service providers (ISPs) connections.

It further indicates that online Filipinos are young and single. The largest number of Internet users are aged 10-19 years, followed by the age group of 20-29 years, and the next are in the 30-39 age group.

“These are the future active bank clients, and the rest are already doing one or several forms of banking transaction, either as individuals or part of a corporation or company,” the PSBank executive said.

Individuals and businesses realize that electronic banking is not only a tool for efficiencies and cost savings. They also view it as a competitive edge moving forward, much as banks have realized the same today.

Remote banking, as it is called at PSBank, offers: account information (balance inquiry, view account statement, download, view summary of transactions), view statement (view/download transactions in past two months), bill payments (immediate or advanced payments to accredited billers or merchants), fund transfer (move PSBank funds from one branch to another under the same name, or to family with PSBank accounts), manage accounts (enroll or un-enroll account, assign nicknames to the account, modify functionalities of enrolled accounts as bills payment source, fund transfer, funds transfer target), customer service (feedback on inquiry with customer service associates), customer feedback (helps the bank improve/expand services), online loan application (apply for auto, business, home or personal loans, get updates via SMS or email regarding application status), and tools (view last three transactions made thru Remote Banking, email PSBank, or change your pass phrase).