Banking operations have evolved from the mere exchange of cash, cheques and other negotiable instruments to the application of Information and Communications Technology (ICT) to banking transactions. Through technology, banks are now able to offer convenience services to their customers. According to Moll (2005), Information and Communications Technologies (ICTs) have changed the way of conducting business transactions and meeting the growing demands of customers for most organizations. The promise of ICTs in the banking sector has been seen in terms of its potential to increase customer base, reduce transaction costs, improve the quality and timeliness of response, enhance opportunities for advertising and branding, facilitate self-service and service customization, and improve customer communication and relationship. Business via the internet or electronic commerce is providing a competitive advantage for banks by lowering operational cost and providing best satisfaction of customer needs.
These activities include Money deposits, withdrawals, transfers, account management, applying for Financial Products, Loan Management, Bill Payments and Account Services. Consumer preferences have shifted to online and mobile devices, but the banking sectors had trouble shifting their on boarding experiences online and to smaller screens. In recent years, the banking industry around the world has been undergoing a rapid transformation. The deepening of information technology has facilitated better tracking and fulfilment of commitments, multiple delivery channels and faster resolution of issues. Today, customers presume highest quality services from banks which, if fulfilled, could result in considerably improved customer satisfaction levels.
Based on the history presented by the article The History Of Internet Banking (2012), the innovations in online banking started in the early 1980’s and were giving easier job for the people who have access to it. There are many offers made by the banks and some of it was with the tools, information, and the access to financial accounts to help the financial goals of the customers. There are also types of security provided by the Internet Banking to the customers who have access to it. E-Banking security showed its importance, effects, benefits, and influence to the modernization of the world today. To be able to know the influence of technology to the
GROWTH OF INTERNET BANKING Competitive cost, customer service, and demographic considerations are the factors for motivating banks to evaluate their technology and internet banking strategies. According to Sarma and Singh(, 2010) the growth of internet banking has been increased dramatically during the last few years due to the following reasons. Competition: Studies show that competition is the key driving force behind increasing use of internet banking, ranking ahead of cost reduction and revenue enhancement, in second and third place respectively. Banks use internet banking as a way to keep existing customers and attract new ones to the
This is because of digital economy that has given rise to various new business models. Even though several of these models are parallels in traditional business, current advancement in ICT has allowed conducting various kind of business at significantly larger scale and for longer distances which was not possible previously. The digital economy is known as the Internet Economy, the Web Economy or New Economy. Progressively, the “digital economy” is tangled with traditional economy for creating clear delineation harder (Drucker, 2007). It has been accepted widely that the expansion of digital economy has widespread all around the economy.
Bank of America: Redefining Customers Introduction How can Bank of America (BofA) gain value by positioning itself in the fast changing and growing industry of mobile banking? It is certain that the increased usage of mobile applications and smart phone users may rapidly shift the way consumers bank. Bank of America is considering how they can fulfill customers’ needs and desire for better quality mobile banking as technology develops. As increasing numbers of technology-savvy users want more functionality of applications, there are managerial issues arising from building new applications or to add complexity to current applications. They face problems whether to have different applications for different target groups or to just add complexity
Today the Internet is the best way, was a supply channel and distribution complete and walking in consumer-oriented in the forefront of this development is the electronic applications of financial products and services. Due to the rapid spread of cyber EFT is an alternative channel for the provision of banking services and products. In Sri Lanka, the banks are now online services and ETF as head of the Bank of Ceylon, Sampath Bank Commercial Bank of Sri Lanka, are beginning to appear. Electronics is now considered a strategic weapon and will revolutionize the way banks operate, deliver and compete with each other, especially when the competitive advantages of traditional branch networks is rapidly eroding (Nehmzow, 1997; Seitz,
Customers are also increasingly becoming sophisticated as they have access to the latest forms of delivery channels (such as the ATM, internet banking, etc). Consequently, many financial institutions have to focus on increasing customer satisfaction and customer retention through improved quality of their services. An element that strongly drove customer satisfaction in banking was the warmth factor related to the bank’s features and personnel attributes (Rust and Zahorik, 1993). In another study by Krishnan and Ramaswamy (1998), satisfaction with perceived product quality was suggested as a primary driver of overall customer satisfaction. This finding contradicts the notion of banking being a service with high credence features, making evaluation of core service (technical quality) difficult.
Financial innovation: transforming the way of doing goods There is no doubt that financial innovation plays a vital role in the development of commercial world. The inventions of ATM and online banking make money conveniently available 24-7; Payment network such as Visa and MasterCard has become part of our daily life; a wide range of financial products were created to facilitate transactions and improve the liquidity of market. Those innovations have influenced millions of people. Imagine a world where people lack basic financial services – transactions are difficult to take place; credits are scarce and expensive; and economy is inevitably moving slowing. It’s time to use the force of financial innovation to promote financial inclusion
It has grown from a small shopping cart to giant e-commerce industry, thanks to emergence and growth of faster and cheaper internet services and its availability on the mobile devices. It increases the seller reach to the potential customer in much faster, easier and in economic way. Online shopping is also known by other alternative names like webstore, web-shop, online store front, internet shop, e-shop,e-store, virtual store and online store. Started as a research from a telephonic B2B services between two businesses i.e. suppliers and vendor and have matured enough to take it to end user a.k.a customers as B2C services with online shopping sites.