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The case outlines the situation facing the Big 4 UK banks regarding the challenge presented by the growth of the on-line banking market. The case is not designed to force students to identify detailed solutions, rather to develop their analytical skills when confronted with complex problems regarding how volatile markets may develop and how companies can best cope with the uncertainties involved. The case details the current situation (January 2000) in the on-line banking market and identifies the two basic strategic options available to the banks. Firstly, to adopt a defensive strategy which offers on-line facilities to those existing customers who want it, but little else. Alternatively, should they adopt an offensive strategy designed to seek a significant share of the on-line market. The case then briefly reviews the marketing history of the Big 4 banks; outlines how competition has evolved in the retail banking market since de-regulation and then focuses on how the on-line market might evolve and what competition is about. The two key issues students should analyse are the growth assumptions concerning the on-line market how effectively the old retail banks will be able to compete in this market; and what are the broader strategic challenges facing the Big 4 banks and how do these impinge on the on-line decision.