Would E-Banking really be the right route to take in achieving success in the future? This report lays out concrete facts and unique opinions that will help you understand and determine what the right decision for your business is. This report covers the development of internet banking in the UK, the importance of System Development and Analysis, a report on the current student banking market, discussing the fundamentals of present laws and legislations and finally the value of protecting yourself, but most importantly, your customers with relevant security issues.
Both external and internal factors assist the swift development of E-Banking. As more people have come to accept the convienience and
Comfort of using the internet for banking, the modern bank or building society has to react and supply the new demand. As customers can now change banks through the internet in minutes, it is important to understand this growing way of life.
1. Development of E-Banking:
The Bank of Scotland started internet banking in the late 1980's but not until recently did it really start to progress. The main attractions to E-Banking in my view are the 24hour availability of account information, the convienience of making transactions in the comfort of your own home and the growing trust in the security of the internet. This is creating huge growth for E-Banking in the past decade.
o 2005 was estimated at 12.1 Million users
o E-Banking will continue with increased spending into this area by 17.5% to around £705million in 2009.
o In 2003, 10 million online money accounts were active in the UK (this was the highest figure for any European Country).
1.1 So what does the future hold for internet Banking? for the modern person time is becoming more and more valuable, they are less enthusiastic about wasting their time, in events like long queues in Banks, poor customer service or being restricted to business hours. Now, over the internet using E-Banking you can accomplish most of the simple banking procedures in minutes and at any time.
If we put all these factors in context, we can see a growing acceptance of the internet's security, a growing need for convienience and time saving options and therefore creating a steady development and bright future for E-Banking.
2. System Development and Analysis.
Deciding on new technology to boost a business has many different aspects that have to be taken into account.
M-banking, rather than driving m-commerce, will in fact be driven by the increasing availability of mobile-focused, user-friendly content. And because the rise of m-business will be based on the inclusion of a strong payments engine, which can provide better payment transaction processing services. Regardless of the bright future of mobile banking, its prosperity and popularity will be brought to a higher level only if information can be securely and safely exchanged among end systems (mobile users and banking service providers). Online banking through mobile service providers is more secure than online banking through internet because of the usage of private network of the service provider (PNSP) and the users’ personal mobile device. The existing electronic authorizations for mobile payment security are based on account - holder authentication by the payment system. The use of secure and convenient mobile personal devices through PNSP could revolutionize the payment, banking and investment industries
In today’s world, the role of service technology in the banking industry is vital; to serve the client’s faster as well as it saves money allowing customers to conduct banking efficiently. Today, through the use of internet, customers can access their bank details on their own computers, smartphones, tablets, transfer money on their own accounts or from one account to another, send money to another country, print or view bank statements and make inquiries about their financial transactions. Technology has changed the way of how banks are delivering services to their customers. Due to the technological advancements, information is available at our fingertips.
In recent years, Internet banking, namely, online banking means the transitions of banking activities including checking account information and payment of bills through a website (Chavan ,2013, cited Singhal and Padhmanbhan, 2008; Ahasanul et al, 2009), is popular in the world. According to Abdou (2014), in the UK, the number of online banking users has increased from 63% to 70% between 2011 and 2012. Online banking is beneficial for consumers to monitor their account information (Hettiarachchi, 2014), and saves time to transferring funds (Lichtenstein and Williamson, 2006). However, Littler and Melanthiou (2006) point out that internet banking is not completely safe, and faces
The complexity financial behavior of the customer from time to time required bank's to enrich the product line and services with IT reliability as key success factor. In today environment every process in the bank is using IT in order maximize profit and reduce cost, or in the other word reach optimal efficiency.
This study is based on secondary sources of information such as RBI reports and bulletins ,research papers ,internet, and various books and periodicals.
This has been done through scaling borders and bringing out new opportunities for the institutions. In India, it has very strongly impacted the strategic business considerations for banks by cutting down the cost of delivery and transactions significantly. While e-banking provides various benefits to the banks and their customers, but it has also been a cause for the increase in traditional and electronic risks. As compared to developed countries, the developing countries face many hindrances and obstructions that affect the successful implementation of e-banking facilities. Electronic form of banking has various features that can help banks obtain success on the financial market. Some of these features are: Increased customer satisfaction Anytime, anywhere access of accounts Better customer relationship Expanded product offerings Extended geographic reach Even with such benefits, electronic form of banking is a risky and challenging
Another pivotal issue was that of the multichannel integration—call center, branch, ATM, and Internet—which is immensely important for large financial institution like ICBC to attract and retain customers with the promise of “anytime, anywhere” account access. Customers are eager to have the kind of flexibility to use whichever channel is most appropriate at a particular time. Continuing with the same point the, ICBC was also concerned about the relative penetration of the existing as well as new customer base to gain access to the banks new technological proposition.
Qureshi T.M., Zafar M.K. and Khan M.B. (2008) Evaluate the customer acceptance of online banking Study concludes that majority of customers are accepting online banking culture because of many favorable factors, usefulness, security and privacy are the main perusing factors to accept online banking system in Pakistan. The other factor is amount of information which is provided to the customers by different means like advertisement through print and electronic media about online banking is useful in customer acceptance of online banking in Pakistan. These factors have a strong and positive effect on customers to accept online banking system.
Due to the absolute transparency of the market, customers can compare the services of various banks easily. If customers are not dissatisfied with the products or services offered by a bank, they can change their bank easily than in the real bank-client
Web based managing an account through conventional banks empower clients to carry out all routine transactions, for example, account transfer, bill payments, stop-payment requests, bank statement, balance inquiry and many more. We can get Account information at any time, irrespective of day or night, and can be possible from
Bill Gates, the co-founder of the most famous multinational technology company, Microsoft Cooperation along with Paul Allen once stated, "Banking is necessary, bank is not." (Filkorn, 2016). Nowadays banking is the most important thing that a person would do. It is dangerous to have so much money in your hands. It may lead you to be the victim of many crimes such as robbery and snatching bags. To prevent this from happening, people will save their money in the banks, but they will withdraw the money whenever they want to use it. Previously, people are not aware of the use of the internet, but now, everything can be done or solve by using the internet including the banking transactions. This kind of transactions is called online banking. Online
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
... new possibilities. Due to the absolute transparency of the market, clients (both business as well as retail) can compare the services of various banks more easily. The Internet has continued since the late 1960s but for most of that time it was only available to governments and for scientific groundwork purposes. By the mid 1990s, as web interfaces enhancesd improved, it became available to the public and E-commerce developed, allowing businesses to offer their products and services on the web. For example, on the internet, if clients are not happy with the products, services or prices offered by a particular bank, they are able to switch their banking partner much more easily than in the physical or real bank-client relationship. From the banks’ point of view, use of the internet has significantly reduced the physical costs of banking operations and transactions.
It is true, that Internet Banking is useful for customers as well as for the banks. On the one hand, it helps people have direct and quick access to their bank accounts, on the other hand, helps the banks to save costs. ‘Clearly, in order to conti...