Zane is buying an apartment and has opened a bank account. The bank account allows him to make payments, including direct debits. [Figure 4.1] Use Fig. 4.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] • Current
2. [1] 1 mark for a correct example • Mortgage • Insurance • Subscriptions such as broadband • Utility bills / gas / electricity • Rent School fees Car Furniture
3. [2] Any 1 advantage and explanation to a maximum of 2 marks • Saves remembering / forgetting (1) when to make variable / regular payments (1) • Saves costs (1) of writing cheques / paying postage (1) • Saves time / faster (1) no need to go to the bank (1) • Eliminates late payments / payments made on time / no delay in payment / instant payment (1) to avoid penalties / extra interest (1) to avoid going into debt / having arrears (1) • May receive a discount (1) saving money (1) • Can improve relationship (1) with the person owed the money (1) • Flexible (1) amounts / dates easily changed (1)
4. [2] • An advertisement that is directed only to people who are likely to be interested in the product / potential customers / specific group of people / specific customers / target audience / targeted audience / target market / specific market (1) via a website / internet / smartphone / social media (1)
5. [3] Up to 3 marks for justified reasoning of yes and / or no responses Yes - It is persuasive (1) shows someone using it (1) has a clear image / picture (1) makes using mobile banking look easy (1) gives the idea that this will lead to more convenience when banking (1) has a catchy phrase (1) will have a wide coverage / large audience / global coverage (1) targeted to the right audience / target market (1) No - It is not informative (1) lacks information on mobile banking services (1) where to obtain the service (1) does not tell you how to use the service (1) no contact information / e.g. name of bank (1) does not show benefits of the service (1) e.g. banking can be done 24/7 (1) no positive content on peoples' reactions to using mobile banking (1) lack of colour (1) not persuasive (1)
6. [6] Up to 2 marks for describing online banking. Up to a further 2 marks for analysing the one or two implications of online banking for banks. Up to a final 2 marks for evaluating the implications of online banking for banks. Positive implications for banks: • Fewer staff needed to serve customers in banks as teller transactions have declined. This reduces labour costs and saves on wages, possibly increasing profits. • Fewer bank branches needed as more people use internet banking. This reduces costs of premises and other running costs. • Greater customer satisfaction. Some customers prefer the benefit of instant access to their bank accounts and the ability to carry out transactions 24/7 wherever they are. • Can widen customer base with more people applying for loans. • If a bank's website is user-friendly, it can attract customers from other banks making the banking industry more competitive. Negative implications for banks: • Less customer satisfaction. Some customers not happy with having to use online banking. Many bank branches have closed, leaving older customers and those without good internet access at risk of becoming financially stranded. With less bank branches open, customers have to travel further to carry out face-to-face transactions with their bank, as customers will be expected to use ATMs and their smartphones to access banking. • Inside the banks, there is more emphasis on self-service machines leading to less face-to-face service and possible loss of marketing of services by staff. • Internet banking has led to increasing technology costs for banks to have robust systems against security breaches. • Most banks offer better savings rates for internet-based accounts, so banks profit margins may be lower. • Some customers have lost money through criminal activity on their internet-based accounts – causing negative publicity for a bank. Evaluation: Overall, there are many positive benefits to banks who offer online banking services but there is still resistance from some customers who prefer to talk to bank staff and who do not have reliable internet connections. This means the banks could lose those customers to other banks so their revenue would decrease. At present, both bank branches and online banking are still needed for the wide range of banking customers.