The biggest benefits to the bank are saved costs, reached a new segment of population, efficiency, enhanced the bank reputation in order to provide better customer service and increased customer satisfaction (Ngandu, 2012). The cost of internet transactions was less than the cost of branch transactions (Ngandu, 2012). Internet banking enhanced the relationship between the bank and the customer, because bank provided service directly to customers. Even customers not able to personally appeared at physical branch, this would create customer loyalty (Yohannes, 2010). Internet banking services are a must for banks due to increased online service provided by other financial institutions, for example insurance companies (Raghunandan, 2012).
Impact of separate factors affecting the consumer’s intention to use Internet Banking Introduction Internet banking is defined as an internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments. Banking can be done literally from anywhere if one has a computer and net connectivity. Internet banking helps consumers in conducting fast and convenient financial transaction activities. The breakthroughs in information technology occasioned by the introduction of the telecommunications networks and the computer system persist to shape the way banks and their corporate relationships are structured worldwide. The pressure of globalization, consolidation, deregulation and rapidly
In recent years the rapid development of information technology through internet, liberalization & globalization has triggered the ways of doing business. Today distance and time barriers have almost vanished and the world has become an integrated community of buyers and sellers. 1.1.1 E-COMMERCE IN BANKING Internet has revolutionized every industry significantly in the last decade & banking industry is one among them . Products and services are radically shifted to digital form and delivered through the internet. It offers an interactive platform with its diverse electronic service s that enables the customers to get attracted towards it and move to the forefront of technology priorities.
The bank makes use of the internet as means to increase business status for innovation (Yakhlef, 2001). It is easier for bank to introduce new products and services thereby attracting new customers. But innovations in banking products can be easily replicated and therefore make it hard to sustain a leading edge over their rivals (Lymperopoulos and Chaniotakis). 2.10.5 Consumer acceptance of internet banking On searching literature review we found different factor that encourages consumer to use and accept internet banking channel. Li et al (1999) argued that understanding of the internet channel, convenience, perceived accessibility, familiarity and utility are key factors that influenced the adoption of electronic banking by consumer.
Quick response and personal contact are also significant for establishing good relationship and gaining trust and loyal customers. This dimension also implies that internet banks should pay more attention to customer’s email, phone calls and personal contact face to face when problems occur. Banks should reply to customer’s email as soon as possible and provide proper information when customers need some advice. In transaction processing people usually start adopting with traditional banking application because they feel comfortable when they actually see the money change hands as compared to online banking wherein all the proof that they get about their transactions is the receipt provided to them by the site after completion of a certain transaction. A part from descriptive analysis, regression and correlation
IMPACT OF E BANKING ON TRADITIONAL BANKING SERVICES Dhanya PV ¹ ¹ M,Phil., Scholar, Dept. Of Economics, Gandhigram Rural Institute- DU, Gandhigram, Dindigul, Tamil Nadu, India, firstname.lastname@example.org Abstract Banking Industry is the backbone of the financial system of a country. The need to survive in the changing environment has leaded the banking industry to adopt internet as a medium of operating in the market. Internet banking provides alternatives for faster delivery of banking services to a wider range of customers. Internet banking refers to the use of internet as a remote delivery channel for banking services.
So, the banks need to add more functions to prove their readiness to offer e-banking services to their clients (Maugis et al., 2004). Banks and other financial institutions have always tried to utilize technology initially for internal use and communication and then as a vehicle for external communication and transactions with their customers (Giannakoudi, 1999). In the early 1990s, banks turned their interest to computer technology, and were able to offer services through personal computers owned and operated by customers at their convenience through the use of internet propriety software (Salhieh, et al,
In the opinion of Daniel (1999), E-banking is online banking (or Internet banking) which allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society. This implies that E-banking is a service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution web site on the
DIFFERENCE BETWEEN E-COMMERCE AND E-BUSINESS E-commerce means buying and selling products or services using an electronic medium. It includes the payment through the internet, processing banking transactions through internet and selling products using the website. E-business means not only setting a website being able to selling the products but also includes fundamental restructuring of the businesses using the technology. The important differences are as follows. E-commerce: • It is a subset of e-business • E-commerce involves commercial transaction doing over the internet • E-commerce uses electronic medium for selling and buying products or services • E-commerce requires a website • E-commerce mainly covers external processes that includes
Electronic commerce, or Ecommerce as it is widely known, literally refers to business trading using the Internet. It has been inexistence since mid-90s however in the recent few years Ecommerce has gathered much attention from both entrepreneurs and customers owing to the success stories of the business model. E commerce has proved its importance and has changed the business environment owing to the following factors that play crucial part in buying and selling: a) Where time is of essence/convenience/ 24* 7: In today’s world time is of paramount importance, it plays a crucial role for both the business and consumers. With ecommerce coming in consumers will save a lot of time during their transactions. With ecommerce a transaction or order