The matrix measures for the improvements added by online banking can be evaluated on comparable levels of service, efficiency and cost satisfaction, for both the provider and consumer of this technology. Throughout this document, we will discuss the advantages and disadvantages of online banking in hopes of formulating a better understanding of why banks of today are moving towards online business. While virtual banking has considerable concerns, the advantages it generates, far outweighs the disadvantages because the value added through this technology benefits both the banks, and the customers. E-banking has had a considerable impact on today’s banking business, affecting both customers and banks in multiple ways. Banking activities such as; account inquiries, depositing or transferring funds and ordering checks, can now be done remotely, 24 hours a day and seven days a week.
In the new era there is a need of bank customers to get improved electronic banking services and also better relations with the bankers. It is also the need of time to provide efficient services/products to the customers. In Pakistan however, such kind of electronic banking has started recently. Online banking system present to their consumers a set of information-related benefits that favors to adopt e-banking, including the facility for the customers to control their bank accounts at any time and any place, and to access information content for making investment and financing decisions (Howcroft B, 2002). Due to the competition among the banks in Pakistan, the banks want to provide the services which are more efficient, rapid and enhanced the banking system.
Most of the banking process is now done electronically. Present day Banks, Credit Unions, and other financial institutions utilize technological advances to store and process customer data; this impacts customer service, data security, transactions, and the way the financial institution operates. When first banks in the US opened back at the end of 18th century no one could have imagined that everything is done the way it is today. Banks of the 18th and 19th century are already considered modern banks, however, the technology keeps advancing and the industry keeps changing. “Every technological stride the banking industry has made over the last few decades is part of a general effort to make banking more convenient, manageable and secure.” (Malone).
To make their relationship a good, the website will produce a forum or site to easy the customer to give their opinion, suggestion or to tell their problem that they having when using RBS bank account. As an international bank, it need to improve their products and services or technology in getting the customer stratifications. It also need to make customer trust to using RBS. Competitive advantage is mean a firm’s ability to create value in a way that is rivals cannot. While outsourcing is a business strategy that moves some of an organization’s functions, activities, processes, and also decision responsibility from an organization to outside providers.
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Computers have become the nervous system of the banking sector. Banks around the world solely function and rely on their computers. Today, a lot of banks offer ATMs, online transfers, pay by phone services, cash deposits, online money transfers and all of this is possible due to the computing systems of these banks. The benefits of these are not only for customers, but for businessmen and the bank administration as well. Customers can make online transactions at anytime of the day or not through ATMs or online banking.
Bank Guarantee Customers are provided the facility regarding bank assurance by means of modern-day commercial banks. When customers have to deposit certain resources in government places of work or courts because particular purpose, financial institution execute itself as the guarantee for the customer, alternatively on concession of depositing fund by customers. 10. Online banking Web based managing an account is a service offered by banks that permits account holders to get to their record information by means of the web. Web based banking is otherwise called as “Internet banking” or “Web banking.” 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.
ICT enables banks to offer better customer service through the spread and use of ATMs, Internet banking, phone banking, 24/7 services, plus the ability to offer an expanded portfolio of products and services. ICT offered the use of ATMs to banks which gave their consumers a greater access to their cash, consumers now longer have to queue up in banks to get their money invest in banks, and they obtain their cash at cash machines with 24 hours day availability seven days a week. With the presents of