The barclay bank



Internet banking has become an important part of banking services. Internet has become the latest delivery channel for banking services due to the backlash from liberalization and globalization of financial services. As Barclay bank is expanding its operations all over the world, it is facing big challenges from other international banks to make advancements in its technology in order to attract the customer. Barclay bank has been doing very well in keeping the customer satisfied with its services especially in internet banking. The biggest plus to banking online is the price and another biggest advantage of doing internet banking is having the access 24 hours to the account. Barclays have a good reputation in internet banking as it is free of charge and the bank is providing the sufficient securities to the account holder with which customers are fully satisfied. This report is basically is about the overall performance of the internet banking in the growth of the Barclays banks operations.


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The effects of internet banking on customer's satisfaction; The case of Barclays Bank in United Kingdom.


Why all the banks (Barclays bank) are adopting the internet banking to attract the customers?

  • How does internet effects banking sector?
  • How it is beneficial for banking sector?
  • What measures should be taken to enhance customer's satisfaction?


In recent time the attention of the researcher used to focus on internet banking because of huge funding initiatives and an increase in the internet usage. But now the research has been focused on the customer's satisfaction. It is the fact that a huge amount has been spent on the internet banking set up but still many customers hesitant in using the internet banking. The main aim and objective of this research is to identify barriers and factors that Barclays bank is facing in order to meet the customer's satisfactions. How Barclays bank can make more improvements in its internet services to satisfy the customer?



Internet has transformed the whole world. It has finished all the distances in communication. Internet has changed everything and it has changed the banking sector as well. Today's world banking sector is under huge pressure because of limited resources, huge competition and stock market woes. In order to survive many banks are taking actions to reduce the cost of operation and by improving the quality of services it offers.

According to Bill Gate "In the 21st century there will be a lot of banking but there will be no bank"

There is a broader definition of internet banking "the information and technological resources use by a bank to conduct the transaction and have interaction with its shareholders. It includes online banking, telephone banking and ATMs".

Electronic money transfer has been in used by many bank worldwide to transfers the money. Banks were providing the services to its customers in transferring the money by using the Electronic data interchange system. Today banks and other monetary institutions has recognized the importance of giving facility of internet banking to its customers.

Internet banking gives up to date information about the account. Customer can have the access of his account at any time and any where in the world. Customer can get gets the complete details of his account, can do transaction at any time without any hassle and can check the status of payment.


In banking sector there are two different fields where information technology has been used. Business process re-engineering is the first one and the second one is communication and connectivity. The importance of information technology is that it enables to develop technical product, to control the risk by implementing the reliable techniques and it support the financial transactions to all over the world.

It has significant influence on the banks operations. Internet technology in the banking sector has emerged a significant and important medium to deliver the product and services to its customers.


  1. Internet has proved to be an important tool which customers and banks can use at any time, any where if we look into customers and banking perspectives. Internet has helped to improve the delivery process of product and services.
  2. Internet in banking sector has made an important and effective impact on the banking services and since the bank has start using internet it has improve the service quality.
  3. It gives twenty-four-hour access. If the bank closes or you are unable to go to the bank but you can still get access to your account and can make transactions at any time you want. It is very helpful for those people who can not go to the bank because of work in offices or health reason.
  4. It allows us to access our account from virtually anywhere. If we're on a business trip or vacationing away from home, we can still keep a watchful on our money and financial transactions - regardless of our location
  5. It gives twenty-four-hour access. Even when the bank closes or you are not in good health or at work and you are unable to go to the bank but you can still get the access to your account and can make transaction at any time.
  6. We can make transaction even if we are out of country and can keep a watchful eye on our bank account.


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A customer satisfaction is usually measured by the number of repeat of customers from the degree of product and services provided by a bank or business.

According to Yi (1993) customer satisfaction can be defined in two ways. First the amount of end sates resulting from the usage of a product. It is like a emotional response of a buyers from the goods and services he receive from consumption of a product and services.

Second satisfaction is considered as a process in which customer gives an evaluation rendered from the experience he get after using the product and service according to its expectations. (V.G. Terry, 1997)


Banking is a service that is a composition of all the characteristics of service, directed towards the customer's money and its management. Banking also has to be high in service credence qualities. It means that you can not evaluate it even after the receipt of the goods because of customer ignorance or lack of knowledge. Customer's satisfaction can arise from any dimension (whether or not it is quality related) and its judgments can arise from non quality issues (needs, equity). An element that strongly drove the customer satisfaction is the factor related to the bank's features and personnel attributes. (Management journal, 2004).


This report includes an analysis of customer's perception towards internet banking services, the quality of e-banking services provided by Barclay's banks and constraints in achieving customer satisfaction. The main focus will be done on internet banking as it is the delivery channel that seems to be slowly growing in UK after the ATMs delivery channel.

Customers are not really satisfied with quality of internet banking service provided by the Barclays banks. Queuing time is considered reasonable at ATMs but too long in banking halls. The fact is that customers are not fully aware and not knowledgeable about the full range of e- banking provided by the Barclays Bank. The decline in the quality of internet banking can be attributed to the increase in the banking transactions.

It is often refers that the use of new technology is not addressed properly to the customers to get the full customer satisfaction. Therefore it is a clear indication that in order to get the full customers satisfaction Barclays Bank needs to introduce services to educate the people about the full use of internet banking. This research study considers two main factors: internet banking and customer satisfaction. Here we can assume that independent variable as internet banking and the dependent variable is customer's satisfaction.

Hypothetical tests are conducted to determine how internet banking affects customer's satisfaction. It is presumed that internet banking preference is affected by factors such as occupation type and age group thus there factors are linked to in order to determine whether these really have impact on the internet banking. Thus, the objective established revolve around age group, occupation type, bank accounts maintained by customers, internet banking, ATM banking, tele-banking, manual banking. It should be noted that some of the objectives are created to facilitate testing of the following quarries such as the advantages and the disadvantaged that bank face as a result of virtual banking competition; the percentage of respondent preferring electronic or manual banking, derive statistics to show preference of type of banking according to age group and occupation type; determine the average frequency of ATM, tele-banking and internet banking services, usually monthly by bank customer; determine the average time taken by a customer in an ATM; investigate the percentage of respondents willing and not willing to pay higher for internet banking services; to rank the four banking delivery channels according to customer preference; to determine the average rating of internet banking services provided by the different banks in UK.

(Joseph stone 2003) have said that the internet deals with a large number of various financial transactions like clients payments, financial transactions, to apply for loans and credit cards. The consequence of the structure and the intension of the internet to be open means high security risk. Today various techniques are methods are offered in order to avoid these risks. Customers and banks have to authenticate each other, private date have to be encoded. Internet security plays a major role in order to fully satisfy the customers. In Barclays Banks new security measures has been introduced recently in order to gain the customer confidence such introduction of the new calculator machine which has been distributed free of cost to each customer who is using internet banking. This device automatically generates special number which has to be entered to get access to the account.


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All the Barclay's customers have a access to internet banking, free of charge. Currently by using internet banking customers can get an access to their account at any where, any time and view statements, pay bills and transfer the money between yours account and of course to someone else accounts in UK banks. In addition, you can apply for many more other services, to apply online for loan, overdraft or insurance and credit cards.

The customer can make a payment or change the payment like standing order is very beneficial especially if someone is allergic to paper form and then submit them by post; in that case it is very helpful. It is also very useful in that you can check a complete history of your account and can know that who got what and when.


Internet banking has following features:


Technology has helped to remove the limitations of time and distance, now a days customers can make payments to any where in the world just with a click on the internet banking at any time and any where.


Electronic financial transaction has helped create new services to innovate new services which has changed the traditional banking.


Since electronic financial transactions, especially those in online retail banking are operating on internet where every one have access, many challenges arise in term of internet banking security. This thing is directly affecting the customer's confidence on the use of internet banking.


There is not much difference in the operations of internet banking as compared to traditional banking. The main difference between these two is that in internet banking customers can have the access of its account at any time, any where and he can made instant transaction and can get the online statement to reconcile by using its computer at any where in the world. It is very effective for those people who are allergic with the paper statement and can apply online rather than using papers and then posts them to the banks.

The internet banking is getting more and more in use in its customers as they considers it is a advantages for them to use internet banking in respect of time and cost. There is some of bank which do charge for providing this online banking services to its customer but in Barclays it has been provided to its customers free of charge because of huge competitions between its rival bank in order to attract and satisfy the customers.(scribed, 2009)



We will use quantitative research in order to complete this report. The main purpose of this research will be to explain the data and characteristics which we will go to study. This type of research is accurate to certain extent but it does not explain the reason about the situation. Quantitative type of research is mainly used to get the information about the performance of certain things or operations conducted by companies and this type of research involves the general public. In quantitative type of research, the idea which we will use from this type of research will to study frequencies and other technical calculations. Here we will try to find why there is perpetual blocking of the UK customers towards the internet banking.


First session will be calculating all the Barclays banks in United Kingdom and to whether Barclays bank is offering all the service regarding customer's satisfaction.

The intended population is defined as retail banking customers in UK. Snow ball sampling method will use to acquire samples from different background until the desired number of feedback will be achieved. (typepad, 2009)


It is an act to look or see or observe the quantitative information about items in the general public. The procedure involve the survey explain the overall aspect of the research which determine changes over time.

  • Statement of the problem
  • Identification of the problem
  • Design of procedure for information collection
  • Collection of information
  • Analysis of information
  • Generalization and/or predictions


Primary data: Structured questionnaire

Secondary data: online data base, journals, surveys


The primary data source will be generated from interviews and anonymous questionnaires from the general public who are the customers of Barclays bank in UK. The primary data frequently gives the detailed definitions of terms and statistical units used in the study. These are usually classified into different segments.


In order to complete a research project, for this purpose the information gathered is called secondary data. There are many types of secondary information sources which a research uses to gather the data on a banking sector or any other market sector. Secondary data is also used to get the initial view about the research problem. Secondary data have a great importance in research, if the secondary data is available to the researcher then it become very easy for the researcher to locate the sources of the data and get the information which is required to research. It is much easier to get the secondary data as compared to the primary data. In order to get the secondary data you don't have to get a expensive and highly skilled person to get the data. Steppingstones (2004) Secondary data for this research will used as literature review and analysis the phenomena of the role of internet banking in the development of customer satisfaction in the Barclays bank in UK.


Interview is a commonly used method of collecting information from people. A person to person interaction between two or more individuals with a specific purpose in mind is called an interview. (kumar R. 2005). We will go to different stores and arrange interview with the managers or owner of the business regarding internet banking use in the businesses.


This is mainly used to collect data or getting people's views and ideas. A questionnaire is a set of questions, the answer to which is recorded by respondents. A questionnaire should be developed in an interactive style. This means respondents should feel as if someone is talking to them. (kumar R. 2005). There are different types of questionnaires they are interview, telephone, postal, delivery and collection, online. In this assignment the quantitative data will be collect from business owners, general public about the effectiveness of internet banking in their day to day transactions.

Questionnaire design:

There will be five sections:-

  • Demographic data
  • Use of internet banking- Yes/No frequency
  • Choice of internet banking- what concerns
  • Features of internet banking- order of importance of various identified features
  • Degree of satisfaction


There is world of difference between truth and facts. Facts can obscure the truth. It includes the working on finding the patterns and trends in the extracted data.


I have prepared the report very carefully by using MS Word.



It appears from the results that to increase satisfaction of online customers, a company must make sure that clients are treated with courtesy and in a timely manner. Clients also expect to have access to updated information on the bank services, and most importantly, they expect a range of products and services online.

The findings suggest less satisfied customers are less technologically ready.

Overall, it is encouraging to see that the investment made in implementing web operations in the bank is paying off at least from the point of view of customer satisfaction.. This proposed research is to study firstly the use of internet banking in the UK economy. Internet banking provides the best competitive force among the banks in the UK. It provides a substantial cost reduction as well as reduces the barriers for switching by customers to competitors.