Banking And Shopping

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Banking And Shopping

  1. 1. Applied GCE Unit 1 Life in the Information Age
  2. 2. Learning Outcomes Lesson 10 <ul><li>By the end of the lesson, you should: </li></ul><ul><li>understand the impact on banking and shopping </li></ul><ul><li>see the effect that technology has </li></ul><ul><li>recognise the advantages and disadvantages of using ICT for banking and shopping </li></ul>
  3. 3. Banking and shopping <ul><li>Information Age has been subtly changing the way we conduct our lives as consumers </li></ul><ul><li>Developed world is rapidly becoming a self-service economy </li></ul><ul><li>Approach to banking changed over recent years </li></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping ; effect of technology; advantages and disadvantages
  4. 4. Banking and shopping <ul><li>Lives get busier all the time </li></ul><ul><li>Anything that saves time is going to be popular even if people are initially wary </li></ul><ul><li>Possible to bank and shop 24 hours a day from the comfort and convenience of your own home </li></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping ; effect of technology; advantages and disadvantages
  5. 5. Online banking <ul><li>According to Forrester Research 60 million (1 in 5) Europeans in the EU banked online in 2003 </li></ul><ul><li>Expected to rise to over 130 million by 2007 </li></ul><ul><li>Information on state of accounts is always available </li></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology ; advantages and disadvantages
  6. 6. Online banking - benefits <ul><li>Survey done by Pew Internet and American Life Project shows top six reasons for online banking are: </li></ul><ul><ul><li>Convenience </li></ul></ul><ul><ul><li>Saves time </li></ul></ul><ul><ul><li>Better control over finances </li></ul></ul><ul><ul><li>Privacy, not having to talk to anyone </li></ul></ul><ul><ul><li>More information online than in a branch </li></ul></ul><ul><ul><li>Saves money </li></ul></ul><ul><ul><li>More bank services available online </li></ul></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology; advantages and disadvantages
  7. 7. Online banking - drawbacks <ul><li>Imagined and real security risks </li></ul><ul><li>Online banks have made risk low by giving 100% guarantee against internet fraud </li></ul><ul><li>Banks reluctant to publicise how much is lost – may undermine confidence in them </li></ul><ul><li>Lack of personal service / individual assistance </li></ul><ul><li>Actual transactions made during banking hours </li></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology; advantages and disadvantages
  8. 8. Online shopping <ul><li>30% of adults have purchased items online </li></ul><ul><li>Popular examples of online buying </li></ul><ul><ul><li>Concert tickets </li></ul></ul><ul><ul><li>Holidays and other travel </li></ul></ul><ul><ul><li>Groceries </li></ul></ul><ul><ul><li>Books and CDs </li></ul></ul><ul><ul><li>Computers and computer accessories </li></ul></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology ; advantages and disadvantages
  9. 9. Online shopping - benefits <ul><li>Lower prices </li></ul><ul><ul><li>Lower overheads means stores charge less </li></ul></ul><ul><ul><li>Early days of very low prices are gone as popularity increase </li></ul></ul><ul><li>Convenience </li></ul><ul><ul><li>Researching hundreds of outlets in one go </li></ul></ul><ul><ul><li>Goods delivered to home </li></ul></ul><ul><li>Choice </li></ul><ul><ul><li>Perception that choice is limitless </li></ul></ul><ul><ul><li>Is this the case? </li></ul></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology; advantages and disadvantages
  10. 10. Online shopping - drawbacks <ul><li>Delivery problems </li></ul><ul><ul><li>Often at the convenience of the carrier rather than the customer to reduce costs </li></ul></ul><ul><li>Hidden costs </li></ul><ul><ul><li>Prices often quoted without postage and packing </li></ul></ul><ul><ul><li>Number of hidden extras only apparent just before payment </li></ul></ul><ul><li>Returns </li></ul><ul><ul><li>Difficulty of arranging </li></ul></ul><ul><ul><li>Repeat of the ‘waiting in’ process </li></ul></ul><ul><li>Security </li></ul><ul><ul><li>Goods never received, or late and damaged </li></ul></ul><ul><ul><li>Individuals have lost more than £20,000 in a single transaction </li></ul></ul><ul><ul><li>Method of payment compromised </li></ul></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology; advantages and disadvantages
  11. 11. Online banking and shopping <ul><li>Many people have been worried about using online services because of </li></ul><ul><ul><li>Credit card fraud </li></ul></ul><ul><ul><li>Uncertainty that trader will deliver </li></ul></ul><ul><li>Every time we complete a successful transaction, more likely to do it again – gain confidence </li></ul>Lesson 10 Learning outcomes: Understand the impact on banking and shopping; effect of technology; advantages and disadvantages

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