Internet banking 'world-class'

By TOM CLARKE

The ASB Bank's electronic banking subsidiary, BankDirect, remains one of the few of its type in the world, says electronic banking specialist James Mitchell.

Mr Mitchell has recently been appointed BankDirect's general manager.

He says it has successfully met every business target that has been set for it since it began just over two years ago.

"I think it would be fair to say that as a direct banking model, BankDirect is world class." he says. "Worldwide, it's one of the few institutions of its type and certainly in this part of the world it is a first."

Mr Mitchell says in the United States there are a number of internet-only banks, but BankDirect is more than that because it offers telephone banking services as well as internet-based services.

"We think the future is very positive and offers many challenges for us," he says. "There's a revolution going on relative to technology and the internet and every day there are new developments.

"In some ways that makes it very difficult for us to be prescriptive about the future, other than to say that we expect the rate of change to be ongoing."

Mr Mitchell believes BankDirect is well positioned. Investors generally have a very positive sentiment towards companies which have embarked on internet-based strategies, he says. They strongly believe that the world of commerce is changing and that more and more business will be transacted over the net.

BankDirect is very comfortable that it has made the right move and now faces the challenge of continuing to increase its customer base, and to increase the breadth of products and services it offers.

Mr Mitchell says that means moving more towards a full financial services model, adding investments, insurance, share trading and other products and services to its existing regular banking services.

While BankDirect has largely had the market to itself so far, Mr Mitchell acknowledges that tough competition is on the way. Regular banks are now beginning to introduce internet-based services and new competitors are entering the market.

"I think it's fair to say that we've occupied a position of leadership in the market so far and we intend to continue to do so," he says. "There are some things that we still need to do to make sure that we stay in the top position and we will be shortly announcing a number of developments aimed at people who are dissatisfied with traditional banking."

Mr Mitchell began his career working in computing with NCR until he joined Post Bank in Wellington in 1988, which was later bought by ANZ Bank. Apart from a two-year stint with Telecom he remained with ANZ, working in Wellington, Jakarta and Melbourne, until last year. He joined ASB Bank then as chief manager electronic banking, overseeing the bank's electronic banking and credit card operations.

He replaces Jane Freeman who has taken up a new post with Telecom.