Electronic Banking

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Electronic Banking

Electronic Banking


New information technology such as the internet is helpful towards the easy exchange of information. Exchange of information is possible with the help of mediums like e-mail and online chat rooms among users. Communication of such information is helpful for the establishment of new connections and creation of the social system. Therefore, users within the social system usually influence their behavior and significantly affect the level of technology usage (Bourke, 2007). For example, in the banking industry, users might exchange views and ideas about trustworthiness or reliability of the bank or the effectiveness or advantages of using internet banking services. Such information exchange could encourage possible users to use these services or to overcome any problem that they have in adopting internet banking services. Ultimately, such interaction might improve the extent of usage of internet in the banking industry.


Introduction of internet banking channel is most likely same as that of the introduction of ATMs some years before. Internet banking offers many types of services to customers in a convenient way, therefore, has a possible prospective to change or convert banks usual delivery channels. In the future, such traditional branch banking would not get abolished, but they would provide services very differently than they do today. Most of the banks would improve present trend of opening branches in new places and location with collaborators like, supermarkets, or improve the branches to promote electronic channels (Gerrard, 2008).

Merits of Electronic Banking

E-banking has alleviated the need to send out bills on time or wait for a monthly statement to balance a checking account. With increasing Internet transactions, paperwork and time spent on these tasks has been reduced by the touch of a button.

Banks leveraged the advantage of the Internet by offering online services in recent year (Sathye, M. 2005). Most of the large banks in the U.S. have online banking and extensive bank branch network. Wells Fargo was among the first traditional banks to adopt a dual banking model. Wells Fargo continues to utilize its traditional retail bank branch model with a separate online banking division that has been offering Internet banking since 1995. Internet banking was considered a separate division of the main bank and was not considered a different company.

It helps people in saving their precious time and enjoys great convenience. You can view your bank statements and check your balances conveniently online. Many banks allow their customers to have free access to their website, where they can request withdrawal, transfer money and pay bills. They offer money management tools, which help you invest in stock market and manage your small business finances easily and effectively. You can set up regular payments like credit card bills, salaries etc. Internet banking allows you to download bank statements as well.

Banks offering online banking service require you to provide your personal data and deposit information over the internet. Hence, safety remains a major concern of many people who want to do banking online. However, many banks use web browsers that support ...
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