DEALING WITH CONSOLIDATION AND VIRTUAL BANKS: AN EXPLORATION OF INTERNET BANKING IN THE "BRICKS AND MORTAR" SECTOR

Since 1995, Internet banking has allowed consumers to utilize the Internet as a platform to interact with their bank. This study examined Internet banking strategy in the face of consolidation in the financial services sector and difficulties evaluating Internet banking offerings. The research was conducted in the United States, utilizing a field study as the research method. The study found that the banks studied are at different stages in relation to Internet banking. With industry deregulation, a growing threat exists to traditional banks business from not only financial services companies but from new organisational forms such as virtual banks. Internet banking is seen as a valuable competitive tool for ‘bricks and mortar’ banks.