While e-banking services have a long way to go before the masses adopt them, an increasing number of bank customers are giving them a test-run, thanks to efforts by the banks to make Internet banking less complicated and to ensure customers of convenience with safety.

Chitraporn Wongsawang, 35, paid her credit-card bill on the Web for the first time a few months ago and continues to do so, after learning from her office colleagues that the service had long been available as an alternative to over-the-counter payments.

"It is much better for me," she said. "Using the Internet banking service is not complicated, and I do it anytime, at my desk. And I find it quite safe."

Thawan Malaitham, 37, an engineer, has used the Internet banking services of two banks for five years. He said the convenience of money transfers, statement inquiries and utility payments has made him stick with Internet payments and he has no wish to return to over-the-counter services.

However, he wants banks to extend their Internet services to include money transfers between accounts at different banks. This remains unavailable.

Charamporn Jotikasathira, executive vice president of Siam Commercial Bank, said the number of SCB customers using e-banking has increased and most are white-collar workers aged between 25 and 50. This is unsurprising because this group can easily access the Internet from their offices.

The most popular services are viewing statements, credit-card loan payments and money transfers.

In 2005, Internet banking transactions worth Bt2.7 trillion were performed from 1,780,431 accounts, an increase of 107 per cent over 2004, according to the Bank of Thailand. Of this, 36 per cent was payments for utilities, 27 per cent was payroll banking and 26 per cent was money transferred within one bank.

Banks say they developed their Internet banking services to make them more customer-friendly.

Krung Thai Bank president, Apisak Tantivorawong, said his bank continued to upgrade its Internet system to make it easier and more convenient to use.

"Our e-banking developments will focus on personal cash management, aiming to allow customers to manage their cash via the Internet, without the need for them to go to the bank," he said.

In addition, banks will offer prizes to customers to encourage them to make more payments online.

The Bank of Ayudhya already offers prizes to its Internet banking customers. Those who pay Bt300 or more via the bank's Krungsri Online service get reward points which, when accumulated, may be used to purchase gifts, including MP3 players, Internet service time and movie tickets.

Aside from attempts by commercial banks to make e-banking services more popular, it also cuts down on the use of paper and manpower, according to the Bank of Thailand. This, in turn, leads to lower operational costs and greater efficiency in the banking system.

The central bank recently raised cheque fees from Bt5 to Bt15 and reduced the cost for ATM money transfers between bank accounts from Bt35 to Bt25 per transaction to encourage electronic banking. Since the fees were introduced in April, cheque usage has fallen by 2 per cent.

The beauty of e-banking is that bank customers can perform their financial transactions via the Internet at any time and anywhere. In effect, gone are the days of lining up in queues for hours to pay a few bills at the bank's counter.

Generally, e-banking includes account-activity review, funds transfer, bills payment, cheques and other services. Fees are usually imposed, mainly when using either money transfer or bills payment services.

For account services, customers can view balances, including savings current, fixed-deposit, loan and credit-card accounts, and recent transactions can also be checked. Repayment history of loan accounts can be called up, to see how much principal remains to be repaid.

However, historical records tend to be different for each bank. SCB allows customers to look back over the financial transactions of the past month, while Bank of Ayudhya's Krungsri Online service allows customers to go back over the past six months. Bangkok Bank's website will show credit-card information over the past three months.

Both local and international funds transfers are available via the Internet. Parents can zip money to the children who are studying overseas, while others can transfer money back home to overseas families.

Fees are payable in case of inter-regional money transfers. Krung Thai Bank charges Bt7 for transferring not more than Bt10,000. In excess of Bt10,000, the charge is 0.07 per cent of the amount being sent. Most banks limit funds transfers to Bt50,000 per account per day.

 Customers can pay bills for goods and services via e-banking channels, ranging from utility and mobile phone call bills to loan instalments, insurance premiums, student registration and even taxes. This costs between Bt10 and Bt20 per transaction, depending on the type of bills.

Some e-banking services allow customers to set payment dates in advance and they are reminded to pay bills when they are due.

Cheque services include stop-payments and viewing the status of a stop-payment and ordering chequebooks.

Other services offered via the Internet include suspending lost credit cards or passbooks and requests for printed copies of past bank statements.

Charamporn of SCB said the bank planned to upgrade its online banking services until it offers a completely paperless system. This system begins with credit-card loans. At present, customers can view their loan balance and make payments that are debited instantaneously to their deposit account.

Somruedi Banchongduang

The Nation