Impacts of link chuẩn của w88 Internet on banking services

ABSTRACT:

E-commerce is changing link chuẩn của w88 way we do business today. New business models are replacing outdated ones and businesses including banks are launching new management strategies for new customer relationships. This article addresses issues including strategies foronline banking services, impacts of online banking services on customers and experience of customers when using online banking services. This sarticle is expected to help leaders of banks consider online banking services a strategy that can reduce transaction costs while providing good customer services and improving cross-selling opportunities for online banking services.

Keywords: Bank, e-commerce, internet banking services.

1. Introduction

Innovations in IT and communication technologies are taking place at an increasing pace. And even firms are approaching link chuẩn của w88 Internet and related information technologies at an increasing pace to improve business efficiency and service quality and attracting new customers. This also reflect that use of internet in conduct of business is growing at a rapid pace. According to a study more than 95% of firms studied have been using internet to buy and sell. Revenue generated via e-commerce are growing at an exponential rate. link chuẩn của w88 amount of e-commerce revenue generated by business firm with interaction to consumers is many folds not only this but link chuẩn của w88 business-to-business (B2B) e-commerce revenue is increasing at rapid pace. And link chuẩn của w88 major factor contributing this growth is link chuẩn của w88 rapid increase in link chuẩn của w88 number of line users.

Both link chuẩn của w88 Internet and e-commerce is having a revolutionary effect in changing fundamental of business. E-commerce is changing link chuẩn của w88 traditional methods of relationship between internal functions, customers and supply chain partners and is virtualizing link chuẩn của w88 market place in a way which was not possible earlier. Due to its potential, every firm wants to board link chuẩn của w88 train named e-commerce and none of them can afford to miss it.

In other words, we can say that today none of link chuẩn của w88 business is left untouched by Ecommerce so is link chuẩn của w88 case of banking and financial institutions, a revolution of this sort has taken link chuẩn của w88 industry on a new dynamic path in link chuẩn của w88 last few years. link chuẩn của w88 number of households using web and link chuẩn của w88 number of Internet Banking customer has risen sharply in link chuẩn của w88 past few years. And link chuẩn của w88 analysis shows that majority of these online customers are individuals as compared to business.

Even link chuẩn của w88 banks have not disheartened their customers. Almost all banks offer internet banking in its basic form access to accounts, statements, transfers, stop payments and clear item like facilities. Many of these banks also offer 'full service" internet banking including bill payment online loans and brokerage services.

link chuẩn của w88 literature suggests that both customers and banks can benefit from Internet banks. But most of evidence in support of this proposition is either anecdotal or in link chuẩn của w88 form of case studied. There is paucity of empirical research dealing with banks perceptions of internet banking its strategic and operational value, impact on customers and related technology issues. link chuẩn của w88 article addresses following questions:

1. What are banks perception of internet banking and its strategic andoperational value?
2. What are banks perception of how internet banking affects customers andtheir relationship with banks?
3. What are key technology consideration in offering internet banking?
4. Internet Banking Models

There are two prevalent internet models in link chuẩn của w88 banking industry viz: e-banks and e-branches. An e-bank is an institution that exist only on link chuẩn của w88 internet which do not have any geographical location. This concept gives banks a opportunity to exist without paper, with no brick and mortar access. While on link chuẩn của w88 other hand e-branch model is where a traditional bank offers internet banking to its customers. It is quite certain that though e-banks are beginning to gain traction, it is easier for a traditional bank to get existing customer to try internet banking than e-banks to entice customers from traditional banks. In stimulus to link chuẩn của w88 competition created by e-banks, traditional banks have independent e-bank subsidiaries. link chuẩn của w88 reasons which they site for this are as follows:

+ To separate internet banking from traditional banking structure, they have replaced link chuẩn của w88 blow moving corporate structure with entrepreneurial one.

+ It gives link chuẩn của w88 new unit much freedom from bureaucracy, where they aim at creating an autonomous unit in accordance with link chuẩn của w88 recommendation of expert.

+ This approach allows a so called "skunk-works" team to manage internet banking by creating a group of innovative thinkers from existing business lines that reports directly to link chuẩn của w88 CEO.

This has initiated a process on not only establishing new internet only banks but also has provided them a new strategy for many of them make reference to mortgage companies and has alliance with insurance company to offer various plans to customers. These internet clients are mainly offered link chuẩn của w88 services on a remote basis, after having been customer of internet at a previous time. This should be not misunderstood with that, these banks only aim at profit making rather there are banks where seizing customers take precedence over making profit. But with only few barriers any one can enter link chuẩn của w88 banking market and offer customer innovative banking solutions.

2. Advantages to banks

First and fore mostly bank can reduce link chuẩn của w88 cost of transaction and make it a quarter of what it incurs in processing a transaction physically also link chuẩn của w88 bank can present link chuẩn của w88 bills of link chuẩn của w88 customer electronically. Electronic bill presentment costs 40% less than paper delivery. These cost saving can offer customers and banks alike reduced cost of banking and still provide efficient and varied services.

Customer loyalty is link chuẩn của w88 second pillar forinternet banking, clients of link chuẩn của w88 bank claim that if their banks offered link chuẩn của w88 financial services they wanted, they would prefer to utilize link chuẩn của w88 bank's service, taking it into consideration banks services which includes bill presentment and payment, financial planning, estate planning, insurance, loans and brokerage services all this is only possible with internet.

Websites that offer financial convergence for link chuẩn của w88 customer will create a more involved banking customer who will more frequently patronize link chuẩn của w88 banking site and more likely use link chuẩn của w88 services offered. link chuẩn của w88 basic idea behind it is by creating a more loyal customer who depends on a bank for many financial services, more bundling can occur and higher revenue per customer can be generated.

Simply having an internet presence does not provide banks a revenue stream. However, by providing distinguished and differentiated products and services banks can benefit from internet integration. By creating financial portals where customer can manage a broad range of financial activities such as stock & mortgages, banks can profit from offering internet capabilities to clients. This in turn increases link chuẩn của w88 involvement of customers who will patronize link chuẩn của w88 banking site and more frequently and will use link chuẩn của w88 services offered.

Apart from core banking, banks can also offer additional services which further increases link chuẩn của w88 role of bank in serving clients by offering a wide array of product and services, banks can benefit from internet integration by creating financial portals where consumers can manage a broad range of financial activities such as stock & Mortgages, banks can profit from offering internet capabilities to clients.

A judicious mix of E-commerce with existing banking operations can lead to substantial cost savings and higher profitability. Automated customer transaction like fund transfer, balance enquiries etc. strategic alliance with insurance companies, mortgage companies and stock brokerage firms can lead additional business opportunities that otherwise will go unrealized and are also major course of cost saving, offering these added value services helps banks to retain their customers. link chuẩn của w88 demographics of internet banking customers are enticing i.e. they have decent level of annual average income, with higher education level and also this group is more profitable than their counterpart.

3. Benefit to consumers

Cyberspace is cheaper to operate than brick & mortar structure and its cost benefit is often passed along to consumers. Many banks offer more interest rate to their clients who transact online as compared to their counterpart. Some of them even offer advance facility too their customers for electronic bill payment and offering link chuẩn của w88 services for no extra cost while on link chuẩn của w88 contrary in case of brick & mortar form customers are charged to do link chuẩn của w88 same.

Basic transactional web sites allow customers to review account balances, holding and recent banking statement. System that allows customers to initiate transaction online such as transferring money between accounts or making payments, provide additional advantage to link chuẩn của w88 customer. These enhanced web sites enable customer to pay bills, apply for link chuẩn của w88 review loans and mortgages, and check credit card bills. Institutions offering online services are well positioned to be market leaders by offering this large array of services from one trusted banking institution these firms will be able to garner a greater share of a customer financial business. Customers will benefit by having a wider selection of services available from one trusted institutions. These features improves stickiness of customers leading to a lower attrition rate.

Banks are adding real time loan application, link chuẩn của w88 ability to make IRA investment and link chuẩn của w88 opportunity to trade in stock through their web site. This has given birth to a concept of "one-stop" shopping which is not of convenient but also leads to more satisfied customers.

4. Threats to internet banking

Security of Internet transaction is of paramount concern to most customers particularly where financial information is involved. It depends on link chuẩn của w88 bank to convince their customer that their website are secure and sufficient measures has been taken to assure security at transaction level. Also safeguarding link chuẩn của w88 privacy of customers financial information and profile are imperative if public is to embrace internet banking. These should be broad guidelines regarding customer privacy threat of intrusion from hacker's and issues of surrounding link chuẩn của w88 relationship of customer anonymity on link chuẩn của w88 internet and also banks responsibility to monitor any suspicious activity.

While a study reveals that 44% of banks offeringinternet banking serviceshad not fully adopted web banking risk measures proposed by regulators. These security measure include inadequate agreement with third party vendors, insufficient strategic planning and incomplete audit procedure for link chuẩn của w88 online banking system. link chuẩn của w88 highly advanced and sophisticated encryption technology that is available today points to a lack of clearly defined security. Implementing link chuẩn của w88 available security technology in link chuẩn của w88 appropriate manner, link chuẩn của w88 safety and security of an internet bank should not pose a severe risk to link chuẩn của w88 accounts of individuals.

A study suggests that almost a one-third of link chuẩn của w88 people who sign up for online banking discontinued due to various reason viz-internet banking was too time consuming, unhappy with customer service, no need or interest in service, too costly, and concern for privacy.

A lack of knowledge about customer perception of what internet banking can offer might present some explanation for why these customers have closed their internet accounts. This further clarified that users’ satisfaction and retention must be addressed for link chuẩn của w88 internet banking to become well accepted.

Even with link chuẩn của w88 best internet has to offer in banking services, consumers still need to visit on ATM or a bank branch to withdrawcash. Customers also have to deposit checks by mail, through an ATM or by visiting branch. ATM's are currently link chuẩn của w88 most convenient means of acquiring paper money from an internet bank. And most ATM transaction are chargeable. To overcome this problem many e-banks reimburse customers for a limited number of ATM transaction each month. In future electronic cash could provide a possible solution. But so far, electronic / digital cash has not been well received by link chuẩn của w88 public. These limitation and issue of e-banking need to be addressed in order to make it more convenient.

5. Conclusion

link chuẩn của w88 sole purpose of this article is to bring out perception of banks regarding link chuẩn của w88 strategic and operational value of web-based banking it's benefit to customer & banks and link chuẩn của w88 key technology consideration. We can say that internet banking is in its nascent stage only a small number of banks offer web-based banking to customer and full benefit of internet banking are still to be realized by many banks. On link chuẩn của w88 other hand, a significant number of banks believe that providing these services to customers in link chuẩn của w88 new economy is essential for survival and thus mandatory. Another benefit of internet banking was link chuẩn của w88 impression it gave to link chuẩn của w88 public of cutting-edge bank, thereby enhancing its reputation.

link chuẩn của w88 article shows that e-banks are not perceived as a threat by many brick- and-mortar banks. In fact, most e-banks are attempting to form alliances and partnership with bank, financial institution, and other business with physical presence in order to provide service that cannot be delivered on link chuẩn của w88 web alone.

From operational perspective banks with web-based banking realized significant benefits but simultaneously majority of banks concerned about customer reduction trust in bank and a degradation in link chuẩn của w88 customer - bankers relationship as a result of internet banking. Technologically implementing web-based banking so that it is transparent to link chuẩn của w88 end user is challenging careful planning is pre requisite if full benefits are to be realized.

In not shell we can say that banks are embracing e-commerce slowly. They appear to realize link chuẩn của w88 potential to this profound change and do not want to be left behind. Banks are very well aware of strategic and operational value of internet as an effective channel and seen to realize that link chuẩn của w88 benefit outweigh link chuẩn của w88 cost. However, they have a variety of concerns ranging from security to link chuẩn của w88 integration of link chuẩn của w88 internet channel with existing business processes and system. Despite these concerns in link chuẩn của w88 future banks will have to include web-based services in their portfolio of offerings to customer or else risk losing customer to link chuẩn của w88 bank do.

REFERENCES

1. Brymman, A. and Bell, E. (2007).Business research strategies. United States: Oxford University Press.
2. Edward E. Leamer (2008).Specification problems in econometrics. link chuẩn của w88 New Palgrave Dictionary of Economics.
3. Robert Hinson (2006). Determinants of Ghanaian bank service quality in a universal banking dispensation.International Journal of Business and Management.
4. Trujillo-Ponce, A. (2012). What determines link chuẩn của w88 profitability of Banks. Evidence from Spain.Journal of accounting and Finance.
5. Thierry Buchs and Johan Mathisen (2007).Competition and Efficiency in Banking: Behavioral Evidence from Ghana. Strategic Management Journal.

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