Banks try to gain competitive advantages in technological atmosphere by adopting new technological developments in their area as soon as possible (Ozcan, 2007; Chang 2002). Information technology developments in the banking sector have speed up communication and transactions for clients. It is vital to extend this banking feature to clients for maximizing the advantages for both clients and service providers (Safeena, Abdullah and Hema, 2010, 2011; Qureshi et al, 2008). In the past, internet banking has been adopted by banks mainly to decrease costs and increases revenue by reducing staff and branch networks. Today, banks are visualizing the internet banking as a strategic enabler of customer services and others view internet banking as the key to expansion.
With the innovative changes in everyday life since the creation of the internet, the banking sector is no exception. The creation of value-added services through the internet such as online transactions and online banking, the traditional landscape of banking has been transformed to new lengths. Day to day banking and similar financial transactions through the digital medium have positively affected the live of many due to the derived benefits such convenience to complete financial transactions at their leisure. Banking institutes are often associated with having high levels of trust in relation security and privacy factors with regard to its physical environment. However this perceived notion has yet to be associated to the digital realm in its full potential.
Eventually, in the future, electronic money could make central banks outdated, which can interpre... ... middle of paper ... ...the main branch. After going through this whole task I realized I’m very grateful for having a bank account. Most people without banking are because they might have a bad credit history, a lack of understanding about the banking system, a bad experience with a bank or unstable income. A disadvantage of not having a bank means you have to pay all your bills by money order or cashier’s check if some place doesn’t accept cash. First, you would have to go to the currency exchange or cash-checking place where you can purchase a money order and U.S stamp.
To encourage customers to embrace the technology and overcome their trepidations about putting their checks into a machine's slot rather than a teller's hands, banks originally didn't charge customers any fees for using ATMs. (Indeed, in time, some banks started charging customers for not using ATMs, through so-called "human teller fees" - a charge for each time a customer uses a teller for a service that could be performed by an ATM.) Banks that embraced the ATM profited handsomely, often growing far faster than old-fashioned banks in the effort to get business from ordinary Americans. At first, a bank's ATMs could only be used by consumers who already had checking or savings accounts with that bank, through the bank’s "proprietary ATM network." However, by the early 80s, banks began to take advantage of improvements in telecommunications technology and formed "shared ATM networks" with other banks, allowing customers of one bank to withdraw money by using ATMs of other banks.
(Porter, 2001) It is obvious that company tend to different from other which only focus on price strategies rather than through traditional methods of differentiation. (Porter, 2001) Throughout this article, Porter mainly aim to demonstrated that the Internet will weaken company’s profitability without providing proper operational advantages, because the proper use of internet will add value and increase company’s traditional competitive advantage, but it is unlikely for company to replace it. (Porter, 2001) It is true that internet business I increasing booming, because the new internet market is still developing in fast pace, every company want to be more profitable through their internet business. At the same, it looks like the company thought they can easily make more profit over the internet. Therefore, they tend to be crazy for sales figure and sell products at very cheap prices.
- Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business. - The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
• Better cash management- E-banking facilities speed up cash cycle and increases efficiency of business . • Convenience- All the banking transactions can be performed from the comfort of the home or office or from the place a customer wants to. Speed - The response of the medium is very fast; therefore customers can actually wait till the last minute before concluding a fund transfer. • Funds management- Customers can download their history of different accounts and do a “what-if” analysis on their own PC before affecting any transaction on the web. This will lead to better funds managemen
The growth potential is , therefore , immense. Other incentives offered by banks discourage customers from visiting physical branches , and therefore are 'hooked ' to the comfort of the armchair banking. The ease of access to their accounts from anywhere in the world using a personal computer with Internet access, is particularly fascinating for High Networth Indians and non-resident individuals who have several bank accounts. Internet Banking: Internet technology has changed the way design and delivery of financial services and, as a result of the banking industry has made continuous innovations - especially in the field of communications and information technology - that ultimately led to the emergence of the idea of what is known as the " online banking " . Banking services through the Internet is a way to keep existing customers and attract others to the bank.
The research will also explain the industries’ zero liability protection, the issuance of new cards when a customer is at risk, and how JPMorgan Chase limited how much their customers were allowed to spend after the Target breach. Lastly, it will elaborate on chip and pin (smart) cards, keystroke dynamics as a secure log in to customers’ online account and picture cards as new technology methods to deter information hacks. Why is it banks job to protect their customers? Since the invention of the internet over 50 years ago, the use of it to stay connected has increasingly become more common (staff, 2010). With this spike in the usage of the internet came the introduction of online banking and shopping.
Before the Internet small businesses were restricted on electronic communications because of high cost on installation and maintenance of networks. Business communications were performed by fax or telephone. Although, the Internet gave the ability for small businesses to become automated, which is advantageous for them, it also brought some costs and disadvantages, and it is facing bigger obstacles that will decide the future of electronic-commerce like government regulations. There are four functions of e-commerce: communication, process improvement, service management, and transaction capabilities. The perfect example form communication function is email.