E-banking has become essential for banks in the last several years, mostly in developed countries. With the introduction of online banking, banks have been able to reach millions of customer’s that are not even in their geographical area and bring them a quick & easy way to check their statements, balances, view recent transactions and many more facilities that were not possible to do before, unless they went to the branch of their local bank. With this introduction, it brings the customer lots of advantages as opposed to before the launch of e banking, but with the advantages alongside indeed brings disadvantages.
LLOYDS and HSBC past 5years performance profitability / efficiency ratios of their sales and market shares data collection:
1. Market share of the 6 largest UK banks:
Banks| Domestic Market share (SME Banking)| Domestic Market share (Current Accounts)| Domestic Market share (savings accounts)| Gross Mortgage Lending Market share| Other customer loans| RBS| 24%| 15%| 9%| 12%| 8%|
HSBC| 15%Β| 14%| 8%| 11%| 7%|
Barclays| 18%| 13%| 10%| 10%| 13%|
Lloyds| 23%| 30%| 21%| 24%| 25%|
Santander UK| 10%| 13%| 13%| 19%| 11%|
Nationwide| 0%| 7%ζ| 9%| 8%| 4%|
Six large banks (current)| 90%| 92%| 70%| 84%| 68%|
Six large banks (after Lloyds divestures)| 88%| 87%| 67%| 79%| 64%|
2. Lloyds profitability ratio 2006-2010:
3. Comparative Net Interest Margins Lloyd’s vs HSBC:
Positive impacts of E-banking on Lloyds and HSBC:
Nowadays, E-banking is time saving as costumers do not have the need to go to their local branch to do any sort of transaction. They can easily do it by internet from wherever they are in the world which before the existence of the internet, customers had to just go to the bank for facilities but had to go to their own local branch. After lots of research on HSBC and Lloyds, they both have many positive things that has been brought by...