Around the world, and across different industries, the internet has cut the cost of doing business.
On everything from music to microwaves, and taxis to train tickets. Consumers save money by doing their transactions on a computer or mobile phone. But not when it comes to banking. Customers of UK banks who use the internet pay just as much for overdrafts and fees as everyone else. These low-maintenance customers rarely need to call their bank, let alone visit the local branch. From the bank's point of view, they are cheap to look after. Yet they get no price reductions. On the face of it, digital customers are getting a raw deal.

Costs

Lloyds - the UK's biggest retail banking group - boasts that is has 10 million customers who access its services via the internet. In effect, those 10 million are paying for the other 12 million customers who still want a premium and personalised service; namely the ability to go in to a centrally-heated, business-rate paying, well-decorated and well-staffed High Street branch, to speak to a human being.....Read more here