banking and shopping

Applied GCE Unit 1Applied GCE Unit 1

Life in the Information AgeLife in the Information Age

Learning OutcomesLearning Outcomes

Lesson 10

By the end of the lesson, you should:

understand the impact on banking and shopping

see the effect that technology has

recognise the advantages and disadvantages of using ICT for banking and shopping

Banking and shoppingBanking and shopping

Information Age has been subtly Information Age has been subtly changing the way we conduct our changing the way we conduct our lives as consumerslives as consumers

Developed world is rapidly Developed world is rapidly becoming a self-service economybecoming a self-service economy

Approach to banking changed over Approach to banking changed over recent yearsrecent years

Lesson 10

Learning outcomes: Understand the impact on banking and shopping; effect of technology; advantages and disadvantages

Banking and shoppingBanking and shopping

Lives get busier all the timeLives get busier all the time

Anything that saves time is going to Anything that saves time is going to be popular even if people are be popular even if people are initially waryinitially wary

Possible to bank and shop 24 hours Possible to bank and shop 24 hours a day from the comfort and a day from the comfort and convenience of your own homeconvenience of your own home Lesson 10


Online bankingOnline banking

According to Forrester Research 60 According to Forrester Research 60 million (1 in 5) Europeans in the EU million (1 in 5) Europeans in the EU banked online in 2003banked online in 2003

Expected to rise to over 130 million Expected to rise to over 130 million by 2007by 2007

Information on state of accounts is Information on state of accounts is always available always available

Lesson 10


Online banking - benefitsOnline banking - benefits

Survey done by Pew Internet and Survey done by Pew Internet and American Life Project shows top six American Life Project shows top six reasons for online banking are:reasons for online banking are:

– ConvenienceConvenience– Saves timeSaves time– Better control over financesBetter control over finances– Privacy, not having to talk to anyonePrivacy, not having to talk to anyone– More information online than in a branchMore information online than in a branch– Saves moneySaves money– More bank services available onlineMore bank services available online

Lesson 10


Online banking - drawbacksOnline banking - drawbacks

Imagined and real security risksImagined and real security risks

Online banks have made risk low by giving Online banks have made risk low by giving 100% guarantee against internet fraud100% guarantee against internet fraud

Banks reluctant to publicise how much is lost Banks reluctant to publicise how much is lost – may undermine confidence in them– may undermine confidence in them

Lack of personal service / individual Lack of personal service / individual assistanceassistance

Actual transactions made during banking Actual transactions made during banking hourshours Lesson 10


Online shoppingOnline shopping

30% of adults have purchased items 30% of adults have purchased items onlineonline

Popular examples of online buyingPopular examples of online buying– Concert ticketsConcert tickets– Holidays and other travelHolidays and other travel– GroceriesGroceries– Books and CDsBooks and CDs– Computers and computer accessoriesComputers and computer accessories

Lesson 10


Online shopping - benefitsOnline shopping - benefits

Lower pricesLower prices– Lower overheads means stores charge lessLower overheads means stores charge less– Early days of very low prices are gone as Early days of very low prices are gone as

popularity increasepopularity increase

ConvenienceConvenience– Researching hundreds of outlets in one goResearching hundreds of outlets in one go– Goods delivered to homeGoods delivered to home

ChoiceChoice– Perception that choice is limitlessPerception that choice is limitless– Is this the case?Is this the case?

Lesson 10


Online shopping - drawbacksOnline shopping - drawbacks

Delivery problemsDelivery problems– Often at the convenience of the carrier rather than the Often at the convenience of the carrier rather than the

customer to reduce costscustomer to reduce costs

Hidden costsHidden costs– Prices often quoted without postage and packingPrices often quoted without postage and packing– Number of hidden extras only apparent just before paymentNumber of hidden extras only apparent just before payment

ReturnsReturns– Difficulty of arrangingDifficulty of arranging– Repeat of the ‘waiting in’ processRepeat of the ‘waiting in’ process

SecuritySecurity– Goods never received, or late and damagedGoods never received, or late and damaged– Individuals have lost more than £20,000 in a single Individuals have lost more than £20,000 in a single

transactiontransaction– Method of payment compromisedMethod of payment compromised

Lesson 10


Online banking and shoppingOnline banking and shopping

Many people have been worried Many people have been worried about using online services because about using online services because ofof– Credit card fraudCredit card fraud– Uncertainty that trader will deliverUncertainty that trader will deliver

Every time we complete a Every time we complete a successful transaction, more likely successful transaction, more likely to do it again – gain confidenceto do it again – gain confidence Lesson 10


banking and shopping

Economy & Finance