The Current and Future use of Internet Technologies for LLOYDS TSB Essay

The Current and Future use of Internet Technologies for LLOYDS TSB Bank - Essay Example The first ATM put up by City Bank of New York heralded the era where technology graduated from being a superficial accessory to being an integral part of the entire banking process. The present form of online banking finds its roots in the pioneering initiative launched by four of the major banks of New York, Citibank, Chemical Bank, Chase Manhattan and Manufacturers Hanover bank. These banks simultaneously, yet individually, offered home banking services that allowed bank customer to maintain records as well as carry out transactions without leaving the comforts of their home (Mary J.C., 1997) Internet Banking received a major boost with the rapid development and penetration of banking activities conducted over the internet. Activities like money transfer and securities trading can be done through internet banking. It’s a virtual bank in itself which is often an extension of its brick and mortar model. With expanding information technology it is wise for the banks to adopt and leverage it, for expansion of business and better and faster delivery of services to the customer. Some of the benefits of internet banking are:Â   Internet banking is being used both in B2B (business to business) and retail banking. There are also some banks which only have a virtual presence, for example Nexity Bank. Generally bigger banks tend to offer internet banking. This is because smaller banks often find the cost of the service unprofitable before they expand to a certain scale (Gup B.E., 2003) Lloyds TSB is the largest retail bank in UK serving over 30 million customers. Being one of the largest banks in UK and the world, it has taken to internet technology in a big way and offers an array of services to its customers over the internet. Some of the internet banking services offered by TSB are like payment of bills, management of direct debit and standing orders, online application for savings account– over draft –