The story of Firstdirect ^[*)][*)]This paper is based on a presentation of Firstdirect given by Tony Williams at the Finanzmarketing-Verband Osterreich (Austrian Financial Marketing Association) in September 1993.

According to research studies conducted in the U.K. one in five people had not visited their bank branch in the last month and about half of the people would rather visit their branch as little as possible. Interesting enough more than a quarter wished some form of telephone banking. Based on these studies Midland Bank as parent company launched Firstdirect. This project set the target of building up a new type of bank relying entirely only on communication with the customer via telephone. As a pioneer in direct banking Firstdirect started from scratch and therefore had to develop a new philosophy, new strategies for banking business and its own management style. It opened a new dimension in customer service. It will be interesting to see how continental european banks can profit from the experiences of Firstdirect.