The Rapid And Major Advancement In Technology

Published Date: 02 Nov 2017

The customers too have to grown with the new upcoming technology. New forms of communication such as text messaging, video chatting and using of social network are persistent even the use of personal sites and blogs are becoming the norms and are changing based on how customers would like to communicate. Customers will demand that their financial institutions adapt to these changes.

Electronic Banking is an essential and key factor in the banking sector. E-banking services have not only proved to be superior but also gaining the attention of the traditional and conventional banking customers rapidly. It has also brought massive and revolutionary changes in the banking industry in terms of customer, services and business perspectives. Electronic banking has got popularity and has emerged in both the developed as well as the developing countries. The main bonus points of e-banking are –

It saves time;

It reduces cost; and

It helps people to access all banking services on a click of a button.

The financial liberalization and technology advancement have allowed the developments of new, effective and more efficient delivery and processing channels as well as more innovative and creative products. These advancement have been to such an extent that the banking institutions are facing competition not only from each other but also from non-bank financial intermediaries as well as from various other alternative sources of financing.

Another strategic challenge faced by the banking institutions today is the growing and vibrant changing needs of the various customers, because majority of the customers today are well educated not only do they posses high level of education but they are well-informed about their surroundings and the existing changes in them. Consumers further extend their knowledge towards the growing wealth of the economy. The consumers demand high-level return from their investments and now are more involved in there financial decisions.

This paper studies evaluates and investigates the factors which are affecting the awareness and acceptance of e-banking services amongst customers and also draws their attention towards the level of concern regarding various factors that stop them from using E-banking.

Many times or more often the new innovated system allows the customers to touch and feel their accounts at home using mobile or other electronic devices and terminals. E-banking is need of the hour as it provide an immensely easy way to monitor and work through an account. Most of the commercial banks in the country have switched to an easy and convenient way in accessing the accounts of their various customers and also providing there customers an easy way which would save their time and money and would give them freedom for easy access.

"The volume of E-banking transactions have hiked in a major way, it has reached 125.9 million while the value of these transactions aggregated to Rs.12 trillion showing a massive increase of 15.50% & 19.00% respectively as compared to the first half of year 2012".

Native for faster delivery of banking services to a wider scope of customers. Electronic distribution channels provides effective alternative for faster delivery of banking services to a wider scope of customers, but despite of all the advantages, opportunities and benefits created by E-banking, there are still a wide range of challenges that are present in the financial sector.

There are a few limitations of E-BANKING namely –

It requires awareness;

It requires knowledge; and

It requires skills to operate.

Some popular services under E-banking are –

Automated Teller Machines,

Credit Cards,

Debit Cards,

Smart Cards,

Electronic Funds Transfer (EFT) System, and

Cheque Truncation Payment System.

Customers access E-banking services by using various Intelligent Electronic Device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM) or touch tone telephone. The five basic services associated with online banking are –view account balances & transaction histories, paying bills, transferring funds between accounts, requesting credit card advances, and ordering checks. These helps faster services that can be provide by domestic and foreign bank.

E-banking reaps many important benefits for both bank and its customers. It has a dual effect like it provides its services to both the banks and its customers.

For the bank, E-banking has enabled banks to lower operational cost by cutting down the manpower cost to a great extent and also saves the valuable time of the bank. It further reduces the physical facilities and staffing resources required and also reduced the waiting times in branches resulting in a potential increase in sales performances and global reach.

From the customer’s point of view, e-banking allows customers to perform a wide scale of banking transactions electronically via the bank's website anytime anywhere. The customer is not bound to time and place restrictions. In addition, customers no longer are confined to the opening hours of banks, travel and waiting times are no longer necessary, and access of information regarding banking services are now easily available.

In India, E-banking was first initiated in ICICI bank. ICICI banks were the first bank which offered his delivery channel in place of the traditional means. It kicked off its online services in 1996. There were many other private sector banks who later came up with the internet facilities. These banks were Citibank, Indus lnd BANK, HDFC and Times Bank (now part of HDFC), started offering internet services in 1999.

The State Bank of India launched its services in early July 2001. Other public sector banks like Bank of Baroda, Allahabad Bank, Syndicate Bank and Bank of India, also rolled its services during the same time. Currently, Bank in India offers "Fully Transactional Websites" to their customers.

What are customer’s expectations?

Understanding the customer needs, desires and expectations is very important to a service oriented organizations as it prevents and protects us against dissatisfied customers who take their business elsewhere to some other organization without voicing their complaint.

After all the customer’s needs and expectations are identified, the customer satisfaction must be monitored and the findings used to generate improvements and proper training to overcome the shortfalls. Proactively conducting customer satisfaction surveys also generates and creates a positive impression on customers about the organization’s interest in them.

LITERATURE REVIEW

(SOURCE - http://www.indianmba.com/Faculty_Column/FC1352/fc1352.html)

This paper describes an empirical study of investigating cognizance of e-banking (online banking) in rural areas. The research objective is to examine the awareness of e-banking in rural areas and focusing on emerging issues and challenges. Electronic banking is the wave of the future. It provides enormous benefits to consumers in terms of the ease and cost of transactions. The Internet banking is changing the banking industry and is having the major effects on banking associations. E-banking is a generic term for delivery of banking services and products through electronic channels, such as Telephone, Internet, Cell phone, etc. E-banking has been around for some time in the form of Automatic Teller Machines and Telephone Transactions. More recently, it has been transformed by the Internet, a new delivery channel for banking services that benefits both customers and banks. Access is fast, convenient and available around the clock, whatever the customer's location and banks can provide services more efficiently and at substantially lower costs. The concept and scope of E-banking is still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably. While E-banking has improved efficiency and convenience, it has also posed several challenges to the regulators and supervisors. Several initiatives taken by the Government of India as well as the Reserve Bank of India that have facilitated the development of E-banking in India. The Government of India enacted the IT Act, 2000, which provides legal recognition to electronic transactions and other means of electronic commerce.

E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution, customers, individuals and businesses to access accounts, transact business or obtain information on financial products and services through a network including the internet. There are five basic services associated with online banking like view account balances & transaction histories; paying bills; transferring funds between accounts; requesting credit card advances; and ordering checks for more faster services that can be provide by domestic and foreign bank. E-banking involves information technology based banking. Under this IT system, the banking services are delivered by way of a Computer Controlled System. This system does involve direct interface with the customers.

(SOURCE - http://philica.com/display_article.php?article_id=320)

Recent advances in technology have created a surge in "technology-based self-service". Such developments are changing the way that service firms and consumers interact, and are raising a host of research and practice issues relating to the delivery of e-service. E-service is becoming increasingly important not only in determining the success or failure of electronic commerce, but also in providing consumers with a superior experience with respect to the interactive flow of information. Technology is one leading ‘driving force’ nowadays, in different businesses (Tavares, 2000). It is therefore important to research the investments in technology and their impact in the bank business

(SOURCE: http://journal.aibuma.org/paper12_Technology_Quality_Ongoro.pdf)

E-banking is the provision of banking service through electronic channels and the customer can access the data without any time and geographical limitation. The development of e-banking services is still in its promising stages in India, with a considerable quantity of potential customers. In the recent years there has been explosion of Internet based electronic banking applications. The emergence of new forms of technology has created highly competitive market conditions for bank providers. However, the changed market conditions demand for banks to better understanding of consumers' needs. Hence this paper outlines the concept of E-banking with advantages and disadvantages. Also comparative study of nationalize bank in Satara region to analyze ATM, Net banking, Mobile banking services used by user in that banks.

(SOURCE: http://www.abhinavjournal.com/images/Commerce_&_Management/Nov12/20.pdf)

IAMAI report online banking on 2006. 43% of online banking users have not started online financial transaction because of security reasons, 39% have not started because they prefer face-to-face, 22% have not started because they don’t know how to use, for 10% sites are not user-friendly and for 2% banks are not providing the facility of internet banking. According to research 68% of the customers cannot say that when they will be starting the financial transactions through internet.

Maximum numbers of online banking users are male and are in age the group of 25-35. Numbers of female users are very less i.e. 17% only. More than 60% of the people who are having accounts in 3-4 banks.

Only 37% of Indian internet users come from Top 10 cities i.e. Mumbai, Bangalore, Delhi, Kolkata, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another day and another number as per IAMAI and I-cube, the number of active Internet user (i.e. ones who logon to Internet at least once a month) is now 32 million and numbers who have used Internet at least once stands at 46 million.

(Source: IAMAI report on online banking 2006.)