A Case Study: Automated Banking and Customer Behavior in the UK

This report examines the impact of automated banking on customer behavior, with a specific focus on the online banking sector in the United Kingdom. It explores the conceptual framework of automated banking, analyzes its significance in the development of the banking sector, and determines its influence on consumer behavior, particularly in light of the COVID-19 pandemic. The report also identifies challenges faced by the UK banking sector in adopting automated technology, such as security concerns, and suggests potential ways to facilitate effective services for customers. The methodology involves quantitative research, including the use of questionnaires to collect data on customer behavior changes related to e-banking. The literature review covers various aspects of automated banking, and the report concludes with recommendations for the banking sector. The study highlights the benefits and challenges of online banking, especially the rise in cyber security issues, and the impact of the pandemic on customer transactional habits.

Auto. banking and its impact on
cust. behaviour
A recent commercial phenomenon has been the growth in the use of the
internet in all business activities, particularly for financial services industries.
Internet technologies have essentially changed the way in which banks provide
their services and cust. conduct their banking needs. One of these technologies,
which has increasingly become a favoured distribution channel by service
providers and cust. alike, is internet banking services (Haque, 2009). Internet
banking is defined as ‘the use of the internet as a remote delivery channel for
banking services and internet banking is defined as a bank that offers (web-
based) transactional services’ (Gopalakrishnan et al., 2003: p. 413). Internet
banking as a banking channel allows cust. to conduct all traditional banking
services, such as making online bill payments, balance enquiry and fund transfer
to other accounts without visiting their bank branch. Internet banking research
points out that banks which do not offer internet banking services are expected
to lose more than 10% of their cust. over the next five years because their
competitive advantages in banking service delivery will erode (Tower Group,
2005). By
Automised banking and its impact
on customer behaviour

Abbreviations...................................................................................................................................3
Topic- To explore recognition in relation to the area of auto. banking and its impact on cust.
behaviour. A case study on online banking sector of United Kingdom..........................................4
Chapter 1: Introduction ...................................................................................................................4
1. Research Aim.....................................................................................................................5
2. Research Objectives...........................................................................................................5
3. Research Questions............................................................................................................6
4. Motivation for study...........................................................................................................6
5. Research Rationale.............................................................................................................6
6. Research Scope...................................................................................................................7
7. Brief research methodology...............................................................................................7
8. Chapter Conclusion............................................................................................................8
Chapter 2: Literature Review...........................................................................................................8
Conceptual framework regarding auto. banking....................................................................8
Significance of auto. tech. in encouraging development of banking sector.........................10
Impact of auto. banking over embracing the consumer's behaviour within United Kingdom13
Challenges faced by banking sector of United kingdom while adopting auto. technology. 16
Potential ways that can be opt by banking sector of United Kingdom to facilitate effective
services to the cust................................................................................................................19
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................22
Analysis and findings ....................................................................................................................32
Chapter 5........................................................................................................................................51
Conclusion and recommendations.................................................................................................51
Reflection.............................................................................................................................51
Results..................................................................................................................................51
Conclusion............................................................................................................................52
Recommendations................................................................................................................53
REFERENCES..............................................................................................................................55

Abbreviations
1. Co. – company
2. Neg. – negative
3. Posi. – positive
4. Cust. – customer
5. Auto. – automatised
6. Org. – organisational
7. Tech. – technology
8. Digi. – digital

Topic- To explore recognition in relation to the area of auto. banking and its
impact on cust. behaviour. A case study on online banking sector of United
Kingdom.
Chapter 1: Introduction
In today's commercial environment, use of internet has increased among different sectors
where banking is one of it. In other words, internet technologies has altered approximately all the
ways of conducting business in banks as they have started offering their clients with different
with online services. These online technologies has enabled account holders of different banks to
perform financial transactions from their smart phones, laptops, tablets, personal computers and
so on. It has been analysed that online banking (auto. banking) has effectively advanced, itself
which progressively become a supported channel that helps banks to stay connected with their
clients considering auto. banking administrations. This has impacted in both neg. and positive
manner on consumer behaviour where benefits were like client's can transfer monitory with the
help of official online website and bank applications as well. On the other hand, the neg. aspect
was rising numbers of cyber attack and so on, which resulted into neg. creation of consumer
behaviour and so on.
This dissertation will be focusing on the specific customer behaviour change i.e.
transactional habits (management of client's own money and transferring them (security related
concerns)) and the major reason behind this particular change was the outbreak of Corona Virus.
Automatized banking is characterized as 'the utilization of web as a remote conveyance channel
for banking administrations and auto. banking is characterized as a bank that offers (online)
value-based administrations'. auto. banking as a financial channel permits clients to direct all
conventional financial administrations, for example, making on the web charge instalments,
balance enquiry and store move to different records without visiting their bank office. Auto.
banking research calls attention to that banks which don't offer online financial banking
administrations are required to lose over 10 percent of their clients throughout the following five
years on the grounds that their upper hands in banking administration conveyance will dissolve.
It has been found that pandemic COVID-19 has changed the behaviour of customers to start
performing all the transactions through online channels, which has helped them in following the
guidelines formulated by Government of United Kingdom in relation with lock down in order to

break the chain of continuous spread of virus. But, this also raised cyber security related
concerns because continuous use of e-banking (auto. banking) may lead an individual to become
a prey to cybercrime.
Background of the research:
Auto. banking services is considered to be an elective conveyance channel, which has
been adopted by most of the banks of United Kingdom. Basically, banks try to bring down
working expenses by decreasing their branch systems and scaling back the quantity of
administration staff, improve their financial administrations and consumer loyalty and hold their
current clients. auto. banking is considered as the least expensive dissemination channel for
normalized bank tasks. As per Stentoft and Rajkumar, (2020), average payment transaction from
online banking facilities specifically costs £0.0080 (Pound Sterling) as contrasted and £0.016 for
a Personal Computer banking administration, £0.022 for an Automated Teller Machine, £0.43 for
a phone banking administration and £0.86 at a bank office. From the clients' viewpoint, this
financial channel encourages a helpful and viable way to deal with oversee individual financial
needs, as it facilitates consumers with 24*7 online financial services where from any area money
can easily be transferred to any other bank account, making payments directly through scanning
QR code and so on without visiting a bank office. However, security related concerns of clients
that uses online banking also raised and the reason behind this was continuous rise in utilisation
of technology because of COVID-19, which also upraised cybercrimes in United Kingdom.
1. Research Aim
The main research aim, that has been formulated is “To explore recognition in relation
to the area of auto. banking and its impact on cust. behaviour. A case study on online banking
sector of United Kingdom.”
2. Research Objectives
 To develop conceptual framework regarding auto. banking.
 To analyse the significance of auto. tech. in encouraging development of banking sector.
 To determine the impact of auto. banking over embracing the consumer's behaviour
within United Kingdom.
 To contemplate the challenges faced by banking sector of United kingdom while
adopting auto. technology.

 To access the potential ways that can be opt by banking sector of United Kingdom to
facilitate effective services to the cust..
3. Research Questions
 What is the conceptual framework of auto. banking?
 What is the significance of auto. tech. in encouraging development of banking sector.
 What is the impact of auto. banking over embracing the consumer's behaviour within
United Kingdom.
 What are the challenges faced by banking sector of United kingdom while adopting auto.
technology.
 What are the potential ways that can be opt by banking sector of United Kingdom to
facilitate effective services to the cust..
4. Motivation for study
The main motivation behind conducting investigation on the chosen topic i.e. To explore
recognition in relation to the area of auto. banking and its impact on cust. behaviour of online
banking sector of United Kingdom is that many researches has been performed or developed on
how auto. banking impacted on consumer behaviour but not most of them did performed detailed
analysis and resulted less favourable outcomes. Including this, customers belonging to United
Kingdom's banking sector has started raising questions in relation with security, whether their
money is safe or not. Specifically, it has been found that pandemic COVID-19 has brought many
issues along with positive aspects as well. It has helped clients holding accounts in different
banks of United Kingdom to easily perform transactions, purchase products and services and also
to easily transfer money as well. This is considered to be the reason behind performing
investigation on the same topic, which will help in analysing the different perspectives of
scholars in relation to consumers behaviour towards auto. banking services. Also, it will enhance
the understanding of both neg. and posi. aspects of utilising auto. banking services offered by
United Kingdom's banks and their impact on consumer behaviour.
5. Research Rationale
The vital reason behind propounding this investigation is to accumulate information on
how consumer behaviour changed or impacted when auto. banking services took place. Full
utilisation of auto. banking services has given ample number of opportunities to account holders

of different banks like Bank of England and so on. Including this, it has also been analysed that
factors along with the interactions between clients and banks with the help of internet impacted
cust.' behaviour. Another reason behind conducting investigation on this topic is that, many
investigations were performed on factors that influenced non users of online banking services
offered by different banks but, at present there are very less number of investigations performed
on how internet banking impacts upon cust.' behaviour. Including this, users of auto. banking
services tends to be or considered to be uniform group of population, which might have led to a
generalisation of some factors that were not accurate and appropriate to collect information in
relation to how cust.' behaviour gets affected due to auto. banking services. Another reason
behind conducting the investigation on the chosen topic was directly linking with security
concerns of individuals while using automatised banking (change in behaviour). Therefore,
concerns in relation with security is something that requires proper attention and this is why
particular dissertation will be focusing on rise of security based concerns of clients that took
place because of Outbreak of Corona Virus like rise in cases of cybercrime and so on.
6. Research Scope
While focusing on researcher's perspective the main scope of present investigating report
where the topic opted is “To explore recognition in relation to the area of auto. banking and its
impact on cust. behaviour of UK's online banking sector.”, is that it will help in enhancing the
knowledge area, which can be used in both personal and professional life in near future. On the
other side, considering the org. or industrial perspective the scope of this investigation is that
same sort of study can effectively be performed in future. Also, it can be said that other type of
investigation can also be performed in rightful manner, which will help readers along with the
public to take right decisions in specified time frame.
7. Brief research methodology
In present investigation, the researcher will be performing quantitative research on the
topic i.e. To explore recognition in relation to the area of auto. banking and its impact on cust.
behaviour of United Kingdom's online banking sector. On the other hand, questionnaire will be
formulated that will help researcher in collecting data in relation with automatised banking and
change that took place in the behaviour of individuals while using e-banking.

8. Chapter Conclusion
Considering the above mentioned information, this chapter specifically concludes that
online banking sector has brought ample number of benefits and challenges for their clients as
well. Away with this, scope of this investigating topic will be delivering information in relation
with how security concerns of loosing personal information or becoming a victim of cybercrime
may majorly takes place because of rapid increase in use of online banking services offered by
banks of United Kingdom in the mean time of COVID-19.
Chapter 2: Literature Review
Conceptual framework regarding auto. banking
According to Aroian, (2019) auto. banking specifically connects consumers from a bank
office and helps in performing different finance related banking services. In other words,
banking automation is said to be a crucial system, which helps in operating banking services and
processes with the help of highly automatic means (Flögel and Beckamp, 2020). This has helped
banking sector of United Kingdom and of the world to reduce the human intervention. Including
this, it has also been analysed that auto. banking services helps a bank in allowing centralized
cust. service that can easily helps finance executives of different banks to keep records of
consumers and it can also be said that different queries can also be resolved without asking client
to visit the bank office. If it is critically analysed then it can be said that automatised banking
sector has given high range of benefits to clients like they can perform transactions by just
clicking on their mobile phones, computer systems and so on however, there are many
disadvantages as well that came in front of using online banking. Some of the disadvantages
were linking to misconduct of many activities like they become victim of cybercrime, started
getting threat messages from hackers and so on.
Also, it can be said that with the help of easing record retrieval, there are a range tasks
that can easily be performed, which may also be taken as a crucial opportunity towards reducing
the human interventions (Tanda and Schena, 2019). This could be understood with a good
example of current situation, where Pandemic COVID-19 (Novel Corona Virus) brought a
breakdown situation and paused every single activity of the whole world. With the help of auto.
banking services offered by banks, account holders effectively become able to perform financial
transactions through online channels like official banking websites and applications as well by

sitting at their home only and without visiting a bank office (Laaser, 2019). Including this, it can
be said that automation is increasingly useful as a way to maintain foot traffic in physical
locations as trends toward mobile and e-banking continue to rise. On the other hand, increasing
auto. banking has helped banks of United Kingdom to reduce the need for human tellers to staff
banks or branches (Tolksdorf, 2019). Personal Teller Machines can help branch cust. perform
any banking task that a human teller can, including requesting printed cashier’s checks or
withdrawing cash in a range of denominations. According to the view point of Janssen and et. al.,
2020, banking automation is defined as a system in which banking process is being done in a
highly automatic manner with an aim to make significant reduction in human intervention. With
the assistance of this tech. wide range of banking services can be done with reduced manpower.
Further this has been evaluated that by taking advantage of automated tech. banks are processing
their operations such as cust. service, compliance, credit card processing, accounts payable, fraud
detection, mortgage processing, general ledger, account closure process, KYC, report
automation, surrender, underwriter support, account origination & receivable, collection,
deposits and more in a well defined and effective manner.
In the view point of Wong, Tan and Ooi, 2020, this has been determined that cust. service
efficiency are also increased with the help of auto. banking, as with the help of RPA multiple
queries of cust. can be solved in time effective manner. In addition to this, process of KYC
which is one of the most important process of banks are also being undertaken in an efficient
manner with the help of auto. banking. It is not only increasing accuracy with less or minimal
errors but are also enhancing satisfaction level of cust.. Due to increase in technological presence
in all around the world. This system is proving advantageous of banks all around the world
which is providing benefits simultaneously to both cust. and banks in a well defined and
effective manner. As per the view point of Perera, Senaratne and Weinand, 2020 there are
maximum number of benefits that are being undertaken by banking sector with the help of auto.
technology. In this some of the certain benefits include, auto. banking is offering cost saving way
through which banks are effectively conducting their operations with improved end outcomes. In
addition to this, one of the most important and effective advantage of auto. banking is that it is
significantly reducing business response time. According to the perceptions of Nnaji and
Karakhan, 2020 this has been identified that most of the banks incorporated robotic process
automation which is aiding them to execute their banking operations in more faster manner. This

tech. is also offering benefit to banks by removing error of duplication. Thus, according to the
above mentioned discussion this has been evaluated that auto. banking is offering competent
benefits to banks, along with this it is also increasing satisfaction level of cust. at great extent.
With the advantage of this tech. baking sector around the world are not only offering high quality
services as well as facilities to cust., but are also reducing issues and errors and are conducting
their banking services with minimal costs. However, auto. banking also elevated some of other
types of concerns as well like rise in cybercrimes in United Kingdom where account holders
from different banks started getting threats from hackers that they will leak the personal
information if they will not give them the money that has been demanded by them and so on.
It is analysed from the views of Talukder and et. al., (2019), automation is an important
aspect that is used within banks for improving the condition of operations. It is seen that
automation within banks has resulted in processing cust. requests that are expensive and increase
the error rate. The enhancement of digi. media has developed captive banks and these
technologies are bringing disruption as well as destruction too. But banks are putting more
efforts for improving the digi. services they are providing. Banks have adopted automation in
order to increase cust. satisfaction level. This will provide help to manage the functioning of
banks properly and providing quick services to cust. and clients. Cloud computing has evolved
and it has helped banks to innovate their services. The use of this has helped in managing
various AI and big data data solutions. There is increase in use of big data solutions and this has
provided help in exploring ideas for managing business activities and operations.
Significance of auto. tech. in encouraging development of banking sector
In accordance with the perception of Hartwich and et. al., (2019), this has been evaluated
that auto. tech. is having significant impact which is making effective increase in banking sector
development. According to the evaluation this has been determined that automatise tech. is
improving experience of consumers in a dramatic speed, as it duly reduces waiting time of cust..
It is an efficient measures with the help of which advanced fraud detection facility can be offered
to cust. that further provide cust. security. Along with this, there are various forms of
significance that are being provided by auto. tech. to banking sector which is increasing their
overall level of performance in a well defined and effective manner (Tunay, Yüksel and Tunay,
2019). In addition to this, there are wide range of effective solutions that are being duly provided
by automated tech. in banking sector. For instance it empowers companies within UK banking

system to effectively forecast results, in this banks can foresee situations by engaging in the
process of evaluation of clients past behaviour. In addition to this, it also facilitate banks to
undertake effective decision making process in terms of wealth advises, cust. experience, fraud
mitigation, loan processing and more. Along with this, one of the most effective significance of
auto. tech. that is encouraging banking sector development is that it allows banks to provide
effective security. As in this with having automation system banks can effectively track down
suspicious emails. Including this, if it is critically analysed then it can be said that auto. tech. in
encouraging development of banking sector but in many situations it has brought concerns as
well for individuals like leaking personal information, online fraud like money extortion and so
on. This has impacted negatively on overall banks as well because, it has been found that
customers started distrusting them but because of COVID-19 they have had to keep on
performing all the transactions through online applications offered by banks.
According to the perspective of David Shoo, (2017), by adopting effective auto. tech. at
the banking sector management able to gain numbers of significant or benefits which leads to
growth of bank successfully at potential market. Moreover, through respective tech. bank able to
adopt new facilities which make their work east as well as more reliable. From which some of
the main significance are mentioned below in the perspective of banking sector:-
 Enhance efficiency – Through the implementation of automation tech. banking
operations become more accurate and effective in conducting transactions. Through
respective tech. they respective sector firms will be experience quick as well as efficient
transaction and compliances (The Advantages of Automating a Banking Business, 2020).
It will also help in minimising risks of the error from human beings. For example an
individual can conduct cash deposits as well as withdraw it from the ATMs (Automated
Teller Machines) which is considered as efficient and fast way.
 Lower cost of operation – Automations tech. help bank to minimise their cost in the area
related to hiring staffs, purchasing equipments for office, train employees and many
others office overhead costs. It is so because automation tech. offers effective payment
systems that enable through the e commerce as well as information system (Stentoft and
Rajkumar, 2020). In past when there is no respective tech. banks need to hire many
candidates for a particular work but now through tech. it can be done by a single
automation process.

 Increase flexibility – Automating tech. help bank to become more flexible which leads
to enhance in business performance effectively, this will also help in getting adjust
properly and easily according to the change take place inside as well as outside of a firm.
In addition to this it will also help in fulfilling need and demand of cust. any time as well
as at any place by providing them possible services, facilities and advice successfully.
For example through automation tech. respective sector co. enable to provide online
services to cust. so that they can conduct retain cust. for long time.
These are the main significances of the automating tech. which is experienced by
banking sector while conducting their business operations and functions at the potential
marketplace. Thus, according to the above mentioned evaluation it has been determined that
automated banking tech. is offering numerous form of experiences as well as satisfaction
encouraging development of to cust. (Talukder and et.al., 2019). As there with the help of this
banks can provide hassle free banking services to their cust. with having effective transparency.
In accordance with the view point of Hao, Shi and Yang, 2020 this has been evaluated that
automated tech. is significantly increasing and encouraging business efficiency of banking
operations. As per according to evaluation this has been determined that there are wide range of
significant benefits that are being offering by robotic process automation within banking sector.
For example with the help of this tech. banks are allowed to undertake their banking operations
24/7. In addition with this, it has also being determined that automation is making reduction is
errors due to less human interactions. Further this has been evaluated that auto. tech. is
significantly allowing banks to gain more competitive advancements in a well defined and
effective way. As with the help of this banks can undertake decisions in a quicker manner
through which they can serve them in a well defined and effective way. Along with this, it is also
allowing banking sector to effectively optimise their overall level of performance in a best
effective manner. According to the perception of Darby, 2020 auto. banking tech. is also have
significant advantage of banks through which they can assure better and long term relationship
with their cust.. As this tech. is allowing banks to better form of digi. channels through which
they can satisfy their cust. with up-to-date balances. In addition to this it is also increase level of
transparency that guarantees banks to enhance satisfaction level if cust. in a feasible way. Thus,
according to the above mentioned discussion it has been evaluated that there is a significant
impact of auto. tech. on banking operations through which banks can assure both higher level of