The common assumption is that Internet banking is the only method of on-line banking. However, this is not strictly the case, as several types of service are currently available:

• PC Banking - The forerunner to Internet banking has been around since the late 1980's and is still widely used today. Individual banks provide software which is loaded on to an SME's office computer. The SME can then access their bank account via a modem and telephone link to the bank. Access is not necessarily via the Internet.
• Internet Banking - Using a Web browser, a user can access their account, once the bank's application server has validated the user's identity.
• Digital TV Banking- Using the standard digital reception equipment (set top box and remote control), users can access their bank account. Abbey National and HSBC services are available via Digital TV providers. One of its main selling points is that no account details are transmitted via the World Wide Web;
• TextPhone Banking - HSBC have introduced this service to allow customers with text phones to check their balance, pay bills and transfer money.

 

Internet banking can be split into two distinct groups:

• Traditional banks and building societies use the Internet as an add-on service with which to give businesses access to their accounts.
• New Internet-only banks have no bricks and mortar presence on the High Street. Therefore, they have lower overheads and can offer higher rates of interest and lower charges.