Literature Review On Online Banking

LITERATURE REVIEW

Dr C. Paramasivan (2009) in his studies entitled “customer satisfaction through information technology in commercial banks” highlighted that, bank account holders are somewhat satisfied with the services provided by their banks and the banks should try to enhance their services in order the satisfy their customers in a cost effective way with the help of information technology.

Mishra (2005) in his paper stated the benefits and the security concerns of online banking. According to him increased customer loyalty, improved customer access, attracting new customers, offering of more services are the primary drivers of online banking. But in a survey conducted by the online banking association, member of institutions rated security

(Daniel, 1999; Mols; 1998; Sathye, 1999). Different authors have defined it in different ways based on their understanding of the application of electronic banking. According to Daniel (1999), electronic banking is electronic connection between the bank and customer in order to prepare, manage and control financial transactions. Sathye (1999) also asserted that electronic banking can be defined as a variety of the following platforms: (a) Internet banking (or online banking), (b) telephone banking, (c) mobile phone banking, and (e) PC banking (or offline banking). 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

But electronic banking now involves many different types of transactions.

Electronic banking, also known as Electronic Funds Transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. You can use electronic funds transfer to:

• Have your salary deposited directly into your bank or credit union account.

• Withdraw money from your account from an ATM machine with a personal identification number (PIN), at your convenience, day or night.

• Instruct your bank or credit union to automatically pay certain monthly bills from your account, such as your auto loan or your mortgage payment.

• Have the bank or credit union transfer funds each month from your account to your mutual fund account.

• Have your government social security benefits cheque or your tax refund deposited directly into your