The New Trend of Online Banking Essay

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The New Trend of Online Banking

Picture what our bank looks like today: the brick building, the drive thru window, large vaults, and the counter full of tellers waiting to service their customers. This is the traditional bank that we have all grown up with, the classic brick-and-mortar business model, a fundamentally sound business model that has been successful for hundreds of years. So what has changed with our banks today? Well, the brick-and-mortar model still exists but there is a new trend that all banks are moving towards, the click-and-brick e-business model. On-line banking and electronic bill payment systems are rapidly moving trends that have been adopted by the banking industry within the last two years. It has been the
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After all, somebody has to be there to accept your deposit, process your checks, manage your account, and process your loan application. So what can banks do to reduce this overhead and better manage their business? The answer: on-line banking and electronic bill payment systems, a new e-business model that allows banks to take advantage of the Internet craze while maintaining the traditional brick-and-mortar infrastructure that has successfully serviced their customers for the past one hundred plus years. On-line banking is actually a very simple concept. Create some type of web interface that a customer can access his or her account twenty-four hours a day, seven days a week. The customer can have full access to account balances, fund transfers, loans, interest rates, and any other type of information that is available from the bank. All this can happen without having to enter the banking facility. Electronic bill payment systems can be accessed from that same web interface so that the bank customer can actually make payments to creditors without having to write a check. The bank's computers can process the transaction without a bank employee present. The cost savings of these two trends are substantial since the majority of your banking transactions can be processed without a bank employee. The hard part is selling this service to the customers and having them use it for the

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