Now a days, the banking sector plays a major role in the development of the country. Banking is the lifeline of today’s economy.
A strong and healthy banking system is an important requirement for economic Finland is the first country in the world to have lead in E-banking.
Introduction to online banking
Online banking is also named as Electronic banking or internet banking or E-banking allows customers to do secured financial transactions by websites operated by the institutions ie Retail bank, virtual bank, credit union or building society.
The concept of online banking is an effective payment and accounting system and enhance the speed delivery of banking services.
Evolution of online banking
A successful online banking offers
- Checking with no fees, free bill payment.
- Easy online application for all accounts including personal loans.
- Quality customer service with personal attention.
- Speed and efficiency.
- Easy to transfer money between accounts.
Problems faced by people during online banking issues
- This is the major problem that should be maintained by all the banks. Many customers are facing security issues, so they refuse to opt for online banking.
- This is a big challenge for market’sand makes the customer to satisfied with online banking.
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- Trust is the biggest hurdle to online banking for most of the customer.
- While using online banking trust is the important factor to influence the customer to engage with web merchant.
Also, take a look at the Traditional Banking
- Privacy risks are one of the considerable factor for customers those who are opting for online banking.
- The risk of disclosure about private information and identifying theft is the most important one.
- The customer may feel that the bank may use their personal information for their marketing and other purposes without consulting them.
- Managing and developing the right technology is important for online banking.
- The developer should have the prior knowledge of deploying it optimally and developing it to the maximum extent to achieve high service efficiency and delivering to stakeholders.
In today’s world, the satisfaction of the customer is a big challenge for the banking sector because customer has alternative choices in various types of services that are provided by Indian banks.
Habits of Traditional banking
- Most of the customer are nowadays participating in online banking but still some people who don’t use online banking.
- A majority of people are using traditional banking. They cause resistance to change the problem due to lack of security and trust in the online system.
Cross border transaction
- The development of cross border transaction plays a crucial role in global trade and an important factor in online banking.
- Cross border transaction is slow, incompetent and expensive because most of the bank still use traditional infrastructure which includes national banking.
- To overcome this process an new technology has been emerged called smooth cross border transaction. Competition risk
- Some nationalised banks and commercial banks have competition from foreign and private sector banks.
- There are various challenges such as product positioning, innovative ideas, new market trends,cross-selling etc.
- Nowadays, banks are decreasing manual work power and getting maximum work that is done by machine. So the competition gets increased.
- Finally, this concludes that online banking has gained major factors in the Indian context.
- And most of the bank has implemented online banking facilities which is beneficial to the customer.
- Thee of ATM cards, debit cards and credit cards has become a major source and provides technology to give way for digitalisation.