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Electronic Banking Has More Benefits for the Bank than for the Bank's Customers - Essay Example
Finance & Accounting
Pages 7 (1757 words)
Topic: Discuss the view that electronic banking has more benefits for the bank than for the bank’s customers Introduction With the arrival of e-commerce in banking sector, performance expectations have increased multi-fold both for the efficient and effective management of banking processes by the bank management and for the provision of heightened comfort level to the customers from e-banking…
Because customer satisfaction has gained much significance in all industry segments, and banking being a retail industry where rush of customers for their daily banking needs is huge, benefits of e-banking to the customers are being provided with extra vigour by the banking industry to attract more and more customers as banking market is very competitive. For banks, internet banking offers the strategic possibility of cutting costs, better customer service; attract more customers and add-on with the cross-selling opportunities. Banks view electronic banking a very positive feature of their services. E-banking has its own challenges and opportunities, challenges emerging from the serious ramifications of global e-banking. In the global context, it is stated that the transaction costs have reduced drastically making it feasible to realise cross-border banking transactions electronically. Such an opportunity provides to the banks the potential of economies of scale. Such electronic cross-border transactions need to be cleared by banks by taking additional safety measures (Nitsure, 2004). Benefits of e-banking to Banks Cost-effective According to Orr (1999) electronic banking cuts the cost of each transaction at once. ...
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