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European e-banking forges ahead of US

By Lisa Burroughes

Published: 5 March 1999 15:32 GMT

European banks are ahead of the US when it comes to electronic banking, according to a survey commissioned by IT services company Bull.

It also claimed Europe leads the way when it comes to the use of technologies such as smartcards, Web enabled call centres and kiosks. Bull said the lead is because of a difference in culture - almost twice as many European customers prefer to conduct financial transactions over the phone.

Bull predicts the use of new technology will become key to winning new customers. Paul Stevenson, director of business development of international financial systems at Bull, said: "Initially the new entrants started with good intentions for their use of technology, but now retail banks believe they can gain further customers by investing in electronic commerce. We could see a leap-frogging effect between the new entrants and traditional banks."

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