02-01-2013, 12:44 PM
Online Banking
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What is Internet banking?
A system allowing individuals to perform
banking activities at home, via the internet.
The automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels.
Some online banks are traditional banks which also offer online banking, while others are online only and have no physical presence.
The Indian banking sector is poised to become the world’s third largest in asset size over the next 14 years with the growth in “the usage of new channels like mobile phones, propelled by 3G and smart phone technology characterizing the next decade in Indian banking”
Development of E-banking
Development of E-banking The concept of Internet banking has been simultaneously evolving with the development of the world wide web. Programmers working on banking data bases came up with ideas for online banking transactions, some time during the 1980's. The online shopping promoted the use of credit cards through Internet. The first online banking service in United States was introduced, in October 1994.
Disadvantages OF E-banking
The biggest problem in Internet banking is need of Computer knowledge Computer skills.
People who are not comfortable with computers and the Internet, often find it difficult to use internet banking
For beginners, internet banking is really time consuming In many instances, a simple mistake, like clicking a wrong button, may create a big problem.
Security Risk Increasing number of fraudulent bank websites
Advantages of E-banking Benefits
Benefits for Small to Medium Businesses Benefits for Customers To run its operations more effectively
Lower cost than traditional financial management mechanisms
Larger customer coverage Reducing the costs of operations Promoting their services and products
Increasing personalized relationship with customers Benefits for Banks
Benefits for Customers Convenience 24 hours a day, seven days a week.