E-BANKING: E-BANKING: EMERGING ISSUES AND EMERGING ISSUES AND OPPORTUNITIESOPPORTUNITIES

By- VINITKUMAR VARMA

Contents Contents

Introduction of E-BankingWhat is E-BankingObjectives of the studyElectronic Banking in IndiaBenefits of E-BankingChallenges in E-BankingOpportunitiesConclusion

IntroductionIntroduction• IT has revolutionized various aspects of our

life.• Growth and expansion of Internet and IT

have facilitated the emergence of E-Banking.• E-Banking implies performing basic banking

transactions by customers round the clock globally through Electronic Media.

• Through E-banking, banks can provide services more efficiently and at substantially lower costs. Even though it provide so many facilities 24X7, but It has certain issues and challenges.

• Practice of banking has undergone a significant transformation due to the adoption of E-banking.

What is E-BankingWhat is E-Banking• Electronic Banking is the use of a

computer to retrieve and process banking data and to initiate transactions directly with a bank via a telecommunications network

• Electronic Banking is actually a repackaging, delivery and processing of traditional banking financial services such as cash withdrawals, fund transfers, placement of deposits through an electronic on-line medium as compared to customary paper based, off-line system

What is E-BankingWhat is E-Banking• Electronic banking means delivery of bank’s

services to a customer at his office or home or his desired place by using Electronic technology can be termed as Electronic Banking.” The popular services covered under E-banking include:-

• Automated Teller Machines • Credit Cards • Debit Cards • Smart Cards • Electronic Funds Transfer (EFT) System• RTGS and NEFT• Cheques Truncation Payment System • Mobile Banking• Internet Banking • Telephone banking

Objectives of the studyObjectives of the studyTo know the prospectus and

opportunities in E-bankingTo know the challenges and

emerging issues in E-banking

Electronic Banking in IndiaElectronic Banking in India• A significant number of online users do not

use E-Banking, and hence there is a need to understand the reasons for not using it.

• Only ATMs became the major revelation for customers, since it offered the facility to avoid long queues in front of the cashiers in banks.

• people are not doing financial transactions on the banks’ Internet sites in India because of reasons such as security concerns, preference for face-to-face transactions, lack of knowledge about transferring online, lack of user friendliness, or lack of the facility in the current bank.

Benefits of E-BankingBenefits of E-Banking Reduced costs in accessing and using the banking

services. Increased comfort and timesaving - transactions can be

made 24 hours a day, without requiring the physical interaction with the bank.

Quick and continuous access to information Convenience- All the banking transactions can be

performed from the comfort of the home or office or from the place a customer wants to.

Speed - The response of the medium is very fast; therefore customers can actually wait till the last minute before concluding a fund transfer.

Funds management- Customers can download their history of different accounts and do a “what-if” analysis on their own PC before affecting any transaction on the web. This will lead to better funds management.

Challenges in E-BankingChallenges in E-BankingImplementation of global technologyCustomer awareness and satisfaction Training and MaintenanceDevelopment of skill of bank personnelSecurity and legal issues Restricted businessCompetitionChanging needs of customers Keeping space with technology up gradation Lack of common technology standards for

mobile banking

OpportunitiesOpportunitiesUntapped Rural MarketsMultiple ChannelsOpportunities for cross sales Tool for marketing and promotions To deliver high level of customer

services.Minimizing costsFaster remittance of funds Indian CustomersTo improve efficiency

ConclusionConclusion It has successfully pull down costs of delivery

and banking transaction. Developing nations like India, are facing many

obstacles that affect the successful implementation of E-Banking initiatives.

With the help of E-banking, Banking sector is gaining customer satisfaction and loyalty. Banks should provide their customers with convenience, meaning offering service through several distribution channels and have more functions available online. There is a need to have more innovative solutions so that the challenges can be solved and opportunities can be availed efficiently by the banks