The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)
One of the reasons why banks adopted this new system, was the ‘boom’ in online shopping and the need for an online payment platform. For the bank themselves, online banking reduces customer service staffing levels, as well as improving speed and flexibility of business transactions. (Shih and Fang, 2004)
It is true, that Internet Banking is useful for customers as well as for the banks. On the one hand, it helps people have direct and quick access to their bank accounts, on the other hand, helps the banks to save costs. ‘Clearly, in order to conti...
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...ional, competitive, technical and regulatory realm within which the system operates’. (Alter 2002 pp. 46) It concentrates around government regulations, as well as global education about system improvement.
Infrastructure relates to all recourses (human and technical) that the system is based on even though these resources exist and are managed outside it. This mainly includes human infrastructure which helps support and training stuff, information, such a shared database. Programming technology and networks are part of technical infrastructure (Alter 2002 p. 48)
It is for the business to create work system, because it is ‘set of ideas for organizing a thought process about a particular type of thing or situation’ (Alter 2002 p. 45). A good framework is useful to understand a sense of other complexity and to identify topics and show how these topics are related.
The costs associated with the online banking operation were out weighted by the benefits provide by the program. Resource had to be taking from other areas of the bank in order to start the program, which included creating the website, make it secure and promote it to customers. However, many benefits also came with the creation of this program. The first would be that it changes the patterns in customer uses of different banking channels. In active users of online banking there were drops in the use of some on the other banking channels. Another benefit is the retention that was created by online banking. This happened because once a customer entered all their information they saw it as a buried to switch bank and have to do it all over again. Therefore, customers would stay more and longer with their current bank.
With the machine-led branches becoming more popular banks can now cut extreme costs with the machines. They no longer need many employees, a space to rent or buy, and they can be open 24/7. They also are attracting new customers because the customers can interact fast with a machine than a bank teller. I believe that the bank industry is definitely taking the right initiatives to start with automated banking. For myself I only use electronic banking ever since I set up my bank account. Everyone uses plastic cards or phones now to pay for everything, I believe that banks need to follow the trend and be able to provide new innovative services for the consumers. I suggest that banks have more cyber security measures inline or monitoring so that customers can be assured that their information and bank accounts are secured. I suggest to myself to get more involved with digital banking, because it is going to be more easier and faster with online
s and to give the organisation a sounder footing should the market become more competitive in the near future. Possible drawbacks with such an online service would be security threats to accounts held by online customers. Also the broader issue of an anti-competitive industry may withhold such an expansion by one of the market leaders. 5. Bibliography 1.
In recent years, Internet banking, namely, online banking means the transitions of banking activities including checking account information and payment of bills through a website (Chavan ,2013, cited Singhal and Padhmanbhan, 2008; Ahasanul et al, 2009), is popular in the world. According to Abdou (2014), in the UK, the number of online banking users has increased from 63% to 70% between 2011 and 2012. Online banking is beneficial for consumers to monitor their account information (Hettiarachchi, 2014), and saves time to transferring funds (Lichtenstein and Williamson, 2006). However, Littler and Melanthiou (2006) point out that internet banking is not completely safe, and faces
High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the
Scott, W. R. 1998. Organizations rational, natural, and open systems (4th ed.). San Francisco: Chandler Publishing.
Mantel, Brian. “Why Don’t Consumers Use Electronic Banking Products? Towards a Theory of Obstacles, Incentives, and Opportunities.” FRB of Chicago Working Paper Series No. EPS-2000-1 (2001): 1-44.
During our February 3 meeting, upper level management expressed concerns about not being able to deal with customer accounts online. We discussed some of the problems they encounter when trying to process transactions online. We agreed some changes needed to be made and that new technology needs to be researched for our online business transactions. The use of electronic signatures was at the top of our list.
The Banking industry has no doubt has witnessed advancement technology just like any other sector; adoption of e-banking that affects banking operations entirely. The continuous advance in technology characterize by a complex and competitive environment. Growth in electronic payments surpassed not only general economic growth but also growth in financial sectors. Using cards for transactions provide a chance to consumers for satisfying their buying desires.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified
Online identity is a term that is used for all that there is found about a person or company in the online environment. Not only a website or a social media profile creates this environment, it’s a compilation of those things that when combined make the online identity. In our current information society the importance of a good online identity has become bigger then ever. How you look online, has influence on how people perceive you in real life. 86 percent of the recruiters will look online for a profile or other information found in search engines before even inviting you on a job interview .
Banks that are equipped with a good grasp of the e-banking phenomenon will be more able to make informed decisions on how to transform them into e-banks and to exploit the e-banking to survive in the new economy. Given the e-banking is a financial innovation (Liao and Cheung, 2003) [9], the change may render the organizational capabilities of the traditional banks obsolete. From the resource-based view (Mahoney and Pandian, 1992) [10], in such a context, the banks must constantly reconfigure, renew, or gain organizational capabilities and resources to meet the demands of the dynamic environment. Developing core capabilities can help the banks redeploy their resources and renew their competencies to sustain competitive
“More put Credit Cards Online.” Machlis, Sharon, ComputerWorld, Framingham March 1998: Vol. 32 Issue 11 pg 6-7. US News. Proquest. 23 April 2005. .
Digital Banking is the buzz word in the financial sector these days, and there are a variety of opinions and definitions around it – which puts people (i.e., both customers and banks) in the awkward situation of not really knowing what digital banking entails and what it actually looks like. And, if you don't know what something is about, you won't know whether you're in or out, or you might even believe that we are well on our way towards integrating digital banking into our traditional banking avenues and leave it at that.
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)