The Growth Of Using Online Banking Essay

1110 Words Nov 25th, 2015 null Page
The technology is becoming important in the future development of the financial industry especially, banking industry. Electronic banking channels are providing alternatives for faster delivery of banking services to the customers such as online banking. Electronic-banking is the latest delivery channel of banking services. Once banking institutions recognized the low processing cost per transaction via the internet, they began viewing online banking as an extension of the bank rather than as an add-on service. The motivation to introduce online banking now also included new business potential, additional funds from new and existing customers, expansion in geographical reach, image as a tech-savvy bank, especially if targeting the youth and the threat of customers shifting loyalty if they did not introduce it. A number of important questions are faced banks, such us how to take full benefit of technology opportunities, how e-channels change the ways customers interact with the financial services provider etc.
The growth of using online banking: Gartners Group’s 1999 report, with the fast shift in internet access, it has been a quick growth in online banking in the USA; for more than 10 million in 1999 to the projected 35 million by the year 2003 (Barto, 1999). Also, the growth in using electronic banking has been the same in Europe especially Germany, Norway and Sweden (Bons, 1999; Slywotzky,2001). The banks are adopting online services-internet banking portals and mobile,…

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