US Households’ Access to and Use of Electronic Banking, 1989- 2007, Article Review Example

In the Article US Households’ Access to and Use of electronic banking, Bell, Hogarth and Robbins examine changes over time in consumers’ access to, adoption of, and attitudes towards the various forms of electronic banking. E-banking gives the consumer more independence and ability to transact business at his/her best convenience (Bell, Hogarth & Robbins, 2009).

Adoption of electronic banking by banks, in my view, has increased customer access to banking services. At a touch of a button, one can check his credit balance, pay bills, buy goods and make bookings among many other things. I think within the next couple of year, virtually all customers will shift to online banking as the cost of internet access drops. This trend, in my opinion, may however be hampered by declining internet security. Cases of fraud have been reported and are bound to increase with advancement in computer technology.

In the article, Changes in the US Family Finances from 2004 to 2007, Bucks et al reviews income and other changes in financial status of US families between 2004 and 2004. reference is made to Federal Reserve Survey of Consumer Finances(SCF) for those years and evidence from earlier years of the survey (Bucks, et al., 2009).

Although Bucks et al suggests that families’ finances are affected by both their own decisions and the state of the broader economy; I am of the view that families’ finances are determined largely by the later. Rising unemployment, escalating food and fuel prices, economic recession and high lending rates are key factors individual families have minimal control over. As pointed out in the article, Family finances declined deeply in 2007 due to the global economic crisis, a force beyond individual control. The period between 2004 and 2007 witnessed a decline in ownership of transaction bank accounts, financial assets, pension plans, investment funds and direct stock. This, I think, implies that families’ finances are regulated by trends in the broader economy hence the need for government intervention.

References

Bell, C.J., Hogarth, M.J,. &Robbins, E. ( 2009).US households’ access to and use of electronic banking, 1989 – 2007. Online Banking09.Retrieved September 12, 2009, from http://www.federalreserve.gov/pubs/bulletin/2009/pdf/OnlineBanking09.pdf

Bucks, et al.(2009). Changes in the US family finances from 2004 – 2009: Evidence from the survey of consumer finances. Federal Reserve Bulletin. 95. Retrieved September 12, 2009, from http://www.federalreserve.gov/pubs/bulletin/2009/articles/scf/default.htm