Executive summary
Internet Banking is not the end of standing in queues, but with ongoing development, things are getting better as more and more functionality is being incorporated to Web sites.
Sure, there are corporate software packages from many of the banks that allow you full and sophisticated services, however the Internet banking offering is often positioned as a simplified version of these packages. But with Small and Medium Enterprises (SME) becoming more and more sophisticated, and the continuing branch closures, the Internet Banking services still need to lift their game.
This review of a selection of the Internet banking services revealed many similarities in feature and functions, but also significant differences in their usability and simplicity. All of them are being regularly updated and enhanced, and are closely approaching their older brothers, found in the major banks.
Fees for using Internet banking are cheaper than over the counter charges, so there's every incentive to get online. As for security, banks use a minimum of 128 bit encryption.
Because most of the sites shared the same functionality, our primary consideration was the extent to which the services made life easier for the SME, who is typically short on time and not technologically strong. Our strong focus on usability meant that being feature rich didn't mean being the best.
Features and functions looked for included:
- Uploading payroll files
- Download to the accounting packages
- Large direct transfers, including batches to pay suppliers, salaries, and other debtors
- Scheduled payments for salaries and other recurring costs
- Online statement facilities for at least three months
- Support for multiple signature accounts
A big problem delaying greater use of all forms of electronic banking is a valid distrust of banks. A number of times I have needed to change banks because the bank has discontinued a service, made a service uneconomic or broken their promise to me. Banks breaking their promises of a frequent problem. The managers who make offers and promises to you have no discretion to keep the promise when Head Office changes the rules.
When you have to change banks it creates big problems if you have organised direct payments into your account for dividend and investment receipts. Before you can change banks you have a huge list of people you have to advise your new account well in advance and then some are still going to go to the old account. In the end it is so much easier and safer to simply get paid by cheque and refuse the requests for direct payment.
What is needed is a reverse BPay where a payee can give payors a code. That code goes to a web table that I can update. Each time that someone has to make a payment to me they download the current bank details from that secure site. When I wish to change my bank I only have to change that one web table for all my payments to go to the new account.