4. Online banking

The latest development in banking is now Internet or on-line banking.

It is estimated that within 3 years, 26 million adults will use online banking in one form or another, either through their home PC or interactive TV.

Initially, banks developed websites to inform customers about their new savings and mortgage accounts. However, the launch of the first purely online banks such as Egg and Smile changed all that.

These new banks were among the first to offer on-line banking facilities to customers.

For the first time, customers could open accounts, check their balances online, move money, pay bills and print statements from the comfort of their own homes.