IMPORTANCE OF E-BANKING

Transcription

1 KAAV INTERNATIONAL JOURNAL OF ECONOMICS, COMMERCE & BUSINESS MANAGEMENT IMPORTANCE OF E-BANKING Dr. Debendra Sagar* 1 1 Assistant Professor (G.F.) Govt.P.G. Guna (M.P.) ABSTRACT Telephones and televisions are used daily by many people; alongside these media the Internet has become more important and useful for an increasing number of people (A Consumer Guide to E-Payments FTC FACTS). The Internet has existed since the late 1960s but for most of that time it was only accessible to governments and for scientific research purposes. By the mid 1990s, as was interfaces improved, it became available to the public and E-commerce developed, allowing businesses to offer their products and services on the web. Keywords:- E- Banking, Customers, Services 1

2 Introduction E-commerce became possible in early 1990s when the Internet was opened to commercial use. With the 24\7 availability of Internet commerce websites it has become very important to the users to trace and track their transactions as they occur to ensure the account status and stability. Thus, it has become very important to have banks that can serve, support and work with e-commerce websites allowing customers to check their transactions online, allow businesses to accomplish their goals, and allow customers to move money around to accomplish their financial transactions (Federal Trade Commissioned-Payments). What is E-banking The provision of banking service through electronic and the customer can access the data without any time and geographical limitation. Types of E-banking (Virtual Banking) There are different types of e-benking. They can be process as with ATM transactions,home banking transactions,phone-banking transactions,and Internet transactions (Liao,Shao,Wang,and Chen,1999) 1. ATM (Automatic Teller Machine ) Automatic teller machine work 24 hours a day, and are located in many different places. Especially in the most populated pleces, which makes them easy to find.using an ATM requires an ATM card and a personal PIN allowing customers secure 24 hours access to banking services such as deposits, withdrawals, transfers,inquiries about account balances, requests for cheque books account statements, direct deposits, etc( FTC FACTS For Consumers,2009) 2. Telephone Banking By the 1970s consumers were able to use their old system home phones to dial the phone to check their balance, transfer funds, and pay bills, Telephone banking allows customers to conduct banking services using the phone from anywhere and any time, but its only disadvantage is that if doesn t involve vision for the customers while producing their transactions. Customers can a 2

3 Knowledge their balance and listen to the transaction, but with the ability to vision it such as viewing it on a computer or on a paper will ass more confidence, and evidence to the customer. The phone banking services can be divided to two types : Operator attended These functions are for customers who have very complicated inquiries and needs that can t be completed through automated services,or who are not comfortable with automated services,or who have need for services that require high security.phone banking is one of the most used and valuable electronic services as Phone and celluler s usage has spread all around the world. Automated These functions are for the requests that can be executed and solved by the automated system without the need for human operators. Mobile e-commerce & e- banking This is a solution that enhances business to consumer interfactions over the Internet.People use their call phones Internet factures to conduct internet banking and other business transactions ( htm). people can use their phones internet connectivity to chcek bank accounts,balances,statements,transfer,assets accounts,check lines of credits pay bill,etc(olle,2000). 3. Home banking The roots of Internet banking can be found in home banking.by the beginning of 1970s home banking was availale vie touch-tone telephones,at the time banks considered this service as home banking even thought it inbolved the use of phones.consumers were allowed to pay bills,transfer funds,and check their accounts. By the mid 1980s banks started to offer home banking sevices to customers by allowing them to install software that enabled them to connect to the bank through a dial up connection. 3

4 4. Internet Banking Internet banking is conducted by completing bank transactions by directly accessing the bank through the Internet Nowadays,Internet banking customers can access many different services online,which makes physical banks open even after office hours. In means of offline banking is becoming to be online banking while physical banks are not opened ( out of office hours),so customers do not need to go to the banks or call them any more unless there is an issue that cannot be handled online. Limitation of E-Banking A. Safety situations around ATMs. B. Abuse of bank cards by fraudsters at ATMs. C. Danger of giving your card number when buying line. Benefits of E-Banking For Bank Price- In the long run a bank can save on money by not paying for tellers of for managing branches Plus, it s cheaper to make transactions over the Internet. Customer Basic - The Internet allows banks to reach a whole new market- and a wall off one too, because there are no geographic boundaries with the Internet. The internet also provides a level playing field for small banks who want to ass to their customer base. Efficiency - Banks can become more efficient then they already are by providing internet access for their customer. The internet provides the bank with an almost paper less system. Customer service and satisfaction Banking on the internet not only allow the customer to have a full range of services available to them but it also allows them some services not offered at any of the branches. The person does not have to go to a branch where that services may or may not be offer. A person can print to information, forms,and applications via the internet and be able to search for information efficiently instead of waiting in line and asking a teller. 4

5 with more better and faster options a bank will surely be able to create better customer relations and satisfaction. Image - A bank seems more state of the art to a customer if they offer Internet access A person maynat want to use internet banking but having the service available gives a person the feeling that their bank is on the cutting image. Advantages of E-banking The main advantages of e-banking are 1- The operating cost unit services is lower for the bank. 2- It offers convenient to customers as they are not required to go to the banks premises. 3- There is very low incidence of errors. 4- The customer can obtain funds at any time from ATM machines. 5- The credit cards and debit cards enables the customers to obtain discounts from retail outlits. 6- The customers can easily transfer the funds from one place to another place electronically. Disadvantages of e-banking 1- E-banking promotes lock of socializing social contacts. 2- Hackers may internet data and defrock customers. 3- Phone bills can interlace. 4- Customers will be more vulnerable to phishing. 5- Customers are compelled to have computers at home, internet access and computers skills. 6- Easier for customers to mismanage there accounts due to the 24 hour Services that will be available. 5

6 Conclusion References With all the benefits of having the banking services accomplished from anywhere that internet exists. Is available and with the availability of having the services 24/7,it is an issue for the Saudi to adapt to the electronic system. Finally the Saudi government is lunching the E-government with the mentality of un-accepting any government documents to be accomplished physically, which means they are encouraging the Saudis to start being involved in e-government as well ass encouraging them to adopt to e- banking or money processing thought the internet. 1- Financial services Research,22, Banks for international settlements(2003a).management and supervision of cross border electronic banking activities accassed on 25 th Feb Rousan faroul (2003) introduction to the E-banking,oman,hours thought of printing and publishing. 8- Morina kamal (1999) rejerena in the E-banking coiro the publisher of the universities. 6