The Challenges of Online Banking: The UK Banking Industry - Dissertation Example

The paper "The Challenges of Online Banking: The UK Banking Industry" is a worthy example of a dissertation on business. In the United Kingdom (UK), the banking industry has been undergoing a gradual transition to online banking from traditional, over-the-counter services. Information technology (IT) is the primary driver of the banks’ espousal of providing their online. In addition to the proliferation of IT applications, other factors such as globalization, managing operating costs, and cultural changes. Specifically, the rapid development and adoption of information communication technology (ICT) by the public has compelled financial institutions to reconsider how they offer their services.

The rapid advances in technology, the ease of international travel, and the emerging trend where formally regional business entities are establishing a multinational presence have required a new financial paradigm. Underpinning observable changes are technologically driven solutions that both the public and institutions are exploiting to improve their productivity (Montazemi & Qahri-Saremi 2015). In particular, ICT has made possible seamless interaction between financial institutions and their customers. To illustrate, most people today have taken to using technology to manage their everyday affairs that include purchasing goods from an online store to making travel arrangements. Also, online banking activity has registered significant growth (Yousafzai & Yani-de-Soriano 2012). For this reason, banks have been working to put the services they offer online in order to reach the burgeoning online financial market as the following graphic illustrates.
Figure 1 illustrates the robustness of online banking services in the UK despite the global financial crisis.
An increasing number of people seeking financial services are turning to options that charge less for transactions and offer convenience. Customers have found that online banking services tend to be cheaper in comparison to over-the-counter banking services (Everett 2015). Further, online banking services make it possible for customers to access their account information at any time and anywhere on their smart mobile devices, particularly smartphones (Dakers 2015).