E banking system benefits and challenges

E- Banking System Benefits And Challenges

1. E- BANKING SYSTEM BENEFITS AND CHALLENGES Presented by ABHIJITH J VIVEKANANDA INSTITUTE OF MANAGEMENT STUDIES

2. INTRODUCTION e-Banking, also known as online baking or virtual banking or internet banking is a system which enables banking transactions like transfer of funds, payment of loans and EMIs, deposit and withdrawal of cash virtually with the help of internet. It is one among the extended features which banking institutions provide, in addition to traditional banking. e- Banking is the most used feature by the citizens of India after the effect of demonetization. This feature is assumed to be one of the most flexible, adaptable and secure ways of transacting among the users/customers to bank. However, it depends on the trust that an individual has on the bank he/she is operating with. There are different types Of e-banking services. The major services offered are Internet banking, SMS banking, ATMs, mobile banking, e- cheques , and debit/credit cards.

3. REVIEW OF LITERATURE Internet banking is currently used as the term for new age banking ( Singhal , 2008). Internet banking is defined as the use of the internet to deliver banking services such as funds transfer, paying bills, viewing current and savings account balances, paying mortgages and purchasing financial instruments and certificate of deposits ( Ahasanul & Daraz , 2009). Internet banking is also said as e-banking, online banking and e-payment ( Ozuru & Chikwe , 2010)(IAMAI, 2006). The electronic communication used in internet banking includes: internet, e-mail, e-books, database and mobile phones (Chaffey, Mayer, & Johnson, 2006). The progress experienced in Internet and other global online networks have thus created new commercial opportunities for e–commerce and formation of totally new sets of global and national trading relationships. This as a result, led to the insight that e-banking and e-commerce are now a foreseeable aspect of financial services (Harris, 2002).

4. The use of e–banking has brought many benefits surrounded by which include: there are no barrier boundaries; it is convenient; services are offered at nominal cost; it has changed traditional practices in banking; the only way to stay connected to the clients at any place and any time is through internet applications; it results in high performance in the banking industry through faster delivery of information from the customer and service provider; customers prefer the use of e–banking because it saves time; it makes possible the use of innovative product or service at a low transaction fees and it encourages queue management which is one of the important magnitude of e–banking service quality ( Brodie , Winklhofer , & Johnston, 2007) (Johnson, 2005) (Williamson, 2006 ). The electronic delivery of banking service has become ideal for banks in meeting  clients’expectations and building  shut  customer relationship ( Ching , 2008).  

5. OBJECTIVES The primary objective is to urge the entire acquaintance of the net banking and its uses. To know the challenges in E-banking .

6. RESEARCH METHODOLOGY The primary offer of the information throughout this analysis study is that the secondary information. The accessible information on internet regarding the E: Banking has been extensively accustomed complete the writing report . All the accessible Journals, Articles, papers provided necessary information to the cluster to finish the analysis study.

7. INTERNET BANKING IN INDIA A study on the net users, conducted by internet and Mobile Association of India (IAMAI), found that regarding 23% of the web users like e-banking as a result of the banking channel in India, second to ATM that's most well liked by 53 %. With the continued digital drive in India, the amount of users selecting on-line banking is anticipated to double to realize 150 million mark by 2020, from this 45 million active urban on-line banking users in India. to keep with a report written by Facebook and so the capital of Boscon Consulting Group (BCG ). ATMs became the key revelation for purchasers, since it offered the power to avoid long queues before the cashiers in banks. It together provided them the flexibility of receding money— anytime, anywhere. In the study by IAMAI, it had been found that the people do not appear to be doing financial transactions on the banks’ websites in India because of reasons like security problems (43%), preference for face-to-face transactions (39%), lack of information regarding transferring on-line (22%), lack of user friendliness (10%), or lack of the power inside this bank (2%).(CHAVAN, 2013)

8. BENEFITS OF E-BANKING It saves time spent in banks. It provides ways for doing international banking. It provides banking throughout the year 24/7 days from anywhere have internet access. It provides well-organized cash management for internet improvement. It provides convenience in terms of capital, labour , time and all the resources needed to type a bunch action. Taking advantage of integrated banking services, banks would possibly contend in new markets can get new customers and grow their market share. It provides some security and privacy to customers, by pattern progressive cryptography and security technologies.

9. CHALLENGES IN E-BANKING Security Risk : To keep with the IAMAI Report (2006), for 43 % of web users do not appear to be exploitation web banking in Asian country because of security issues. so it’s an unlimited challenge for marketers and makes shoppers glad regarding their security concerns. The Trust Factor : Trust is that the most important hurdle to on-line banking for several of the purchasers, they have a perception that on-line act is risky due to that frauds can happen. Whereas exploitation e-banking facilities, ton of queries arise inside the mind of shoppers such as: how did act go through? Did I push the transfer button once or twice ?. Etc Customer Awareness : Awareness among shoppers relating to the e-banking facilities and procedures remains at lower side in Indian scenario. Privacy risk : The possibility of unveiling personal information; worry of fraud is one all told the foremost necessary factors that inhibit the consumers whereas selecting e-banking services .

10. C ontd.. Availability of Personnel services: In gift times, banks are to provide several services like social banking with cash potentialities, selective upgradation , automation and innovative mechanization, higher client services.. Etc. Competition : The nationalized banks and industrial banks have the competition from foreign and new personal sector banks. Competition in banking sector brings various challenges before the banks like product positioning, innovative ideas and channels, new market trends, cross selling ad at group action and structure half this method has got to be manage, assets and contain risk. Handling Technology : Early adopters of technology acquire very important competitive advances Managing technology is therefore, a key challenge for the Indian banking sector. Implementation of world technology : In developing countries, many shoppers either do not trust or do not access to the desired infrastructure to be able to technique e-payments.

11. OPPORTUNITIES IN E-BANKING Untapped Rural Markets : In all urban areas banking services entered but only few big villages have the banks entered. So the banks ought to reach in remaining all villages as a result of majority of Indian still living in rural areas . Multiple Channels : Banks will offer various channels to access their banking and completely different services like ATM, native branches, Telephone/mobile banking, video banking etc. to increase the banking business. Increasing web Users and laptop computer Literacy : To use web banking it is important or initial demand that people should have data relating to web technology thus they're going to merely adopt the net banking services. Worthy shopper Service : Worthy shopper services are the best whole ambassador for any bank for growing its business. Every engagement with shopper could be a probability to develop a shopper faith inside the bank .

12. CONCLUSION The banking system is ruling within the net business world from many recent years. The net banking revolution has primarily modified the banking business by providing new opportunities . In India net banking has extremely compact the strategic business thought for banks by cutting the delivery costs and transactions . The majority of the banks enforced net banking facilities, through that the banks and customers can take the advantage. Several drawbacks and challenges are concerned in performance of net banking in India however it has a bright future . ATMs, debit and credit cards has become sort of a necessity in day nowadays life thus its utilization is increasing day and additionally became a supply of information technology and given some way for digitalization. Developing countries face several difficulties that have an effect on the eminent implementation of net banking initiatives when put next to developed countries . The best profit that banks understand by observing utilization of net banking has increased client satisfaction. This all happened as a result of customers access their account anyplace and anytime with the help of net banking . However net banking may be a powerful task and banks face lots of challenges, but never stop implementing net banking , it will providehigher services to customers.

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