So, we hear that Direct Line and Intelligent Finance are going to be among the casualties from the enforced restructuring of HBOS and RBS

Just last week ING announced that it plans to sell off its ING Direct franchise in the US – another Internet based operation.

Interesting to note that IF and ING Direct brands are among the more customer-friendly of their parent banks’ portfolios and you’d have to question whether selling off Internet-based banking is really a smart move today when consumers so obviously want fast, on-demand, (but secure), service.

The Internet offers unparalleled opportunity to really get to know your customer and the banking fraternity has an advantage over many sectors in that anti-money laundering rules stipulate it must confirm the identity of all new customers when they open a new account. What better way to start a relationship than with a clean sheet of authentic, verified information on which you can build a clear understanding of what the customer wants or needs or may be interested in.

Every click, every page browsed, every product page reviewed – all this information is readily available to Internet banking executives. So why don’t they use it? Why is managing customers’ identity deemed to be no more than simply verifying their personal details? Internet banking offers an unrivalled opportunity for banking staff to come right into our living rooms and get to know us. So surely getting rid of Internet based operations in favour of a more traditional banking structure with its limited opening hours and expensive customer service operations is questionable? A bank’s profitability is intrinsically linked to the identity of its customers. Internet banking offers the potential to understand that identity far better than through any other channel….. watch this space!