The impact of the Internet upon bank marketing

Information and communication are critical to developing customer relationships. Thus, new information and communication technologies (NICTs) became a key knowledge tool for the organisation within a relationship marketing strategy. Retail banking is a good example of a sector in which the virtualisation of relationships is increasing. However, there is no consensus as to whether banking relationships are strengthened or weakened by the use of technology. This article discusses the virtualisation of the interaction processes between banks and their customers and analyses the infl uence of the Internet on these relationships. A questionnaire was distributed by mail to 340 Internet banking services ’ users. A principal components analysis and a multiple regression analysis were conducted in order to discuss the relationship between the identifi ed dimensions of Internet banking and relationship marketing. The research fi nds three factors related to the use of Internet banking which strengthen the relationships between banks and their customers: the intensity of Internet use, the diversity of access locations and the diversity of Internet applications. From a managerial point of view, these fi ndings have implications for the development of new relationship approaches based on technology. Journal of Financial Services Marketing (2010) 15, 160 – 175. doi: 10.1057/fsm.2010.12