Background And Overview Of Digital Banking

The World Wide Web has changed our culture in so many ways. People are able to do so many activities over the World Wide Web, it is unbelievable. You can pursue a degree through online universities, communicate with users around the world, purchase goods and services online, and yes, you can bank and pay your bills online. This new technology has enabled us to make payments, maintain a checking/debit card account, balance transfers, all via the web. You can maintain your entire financial portfolio through online banks that provide this feature. There are online banks that can provide interactivity between popular financial management software programs, such as Quicken and Microsoft Money. When using

According to the most recent Federal Reserve study; most of us haven’t set foot in a banking hall in ages. It is a lost battle to banks that opt to use traditional methods to conduct their banking transactions (Gup 2003). By December of last year, close to half of all smartphone users in the United States had transacted some or all of their banking on their phones and iPhones. In the United Kingdom alone, rates of mobile banking transactions doubled over the course of a single year (Scn Education 2001). A banking business that invests in this type of technology gets assured of increasing their customer base.

The way people bank is going through explosive, explosive changes. In fact, it’s transformed more in the last decade than in the last century. The great news for millennials is that it’s easy to grasp and use the new technology.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

In the old days, people go to bank branches in order to either make a deposit or a withdrawn to their accounts. From 14th century in Venice, Italy to 1970s in New York, United States, banking seems to the same as it never changes. There is no other options if you don’t want to have your own house full of cash open for thieves and robbers. But with digital currency and online banking system, those days have long gone for younger generations only with pictures shown on the history books. Starting from 1990s, growing with the boom of IT technology in Silicon Valley, digital banking has given itself a key role of shaking up the entire banking industry as

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

In 2014, Mobile Bank transactions has increased 90 percent, with a thousand more new users everyday. Manual transactions steadily decreased by 19 percent in 2014. More 4.2 million active users in Nordic regions. On the other hand, efforts are done with small and medium sized companies to help them adjust to the new system and regulations.

The regulatory authority of the government in restricting competition is historically evident in the banking industry. Until the 1970 's, the markets that banks could enter were limited by state governments. As a result, most banks were local commercial and

As ATM machines and the internet became ubiquitous in use for transactions, it forced Bank of the West to take a deep dive on all the different ways customers interact with the bank, and how the multitude of products/services can be combined to various packages to present better and more targeted combination of products and services.

In 2009, 10 million customers used mobile banking and this is expected to grow to 37 million by 2014. Customers that use mobile banking are not the same as online customers. Customers that use mobile banking represent a different segment of the market that other banking customers. Security issues, a perceived low value and expense, were the primary reasons that customers did not switch to mobile banking. Potential customers were reluctant to try a new banking service that are represented an extra cost and they were also afraid of losing control of their finances. Debit cardholders were the most active users. It was convenient for them because they could check their account at any time. Customers that used this service changed their usual banking channels and as a result -the bank had a higher retention for these users of online services.

Non-uniformity of services – It is very important to understand that not all banks provide same services through Mobile

Today, the fundamental challenge facing many financial institutions is cost pressure, margin compression, and the growing mass market. Competition is rife and a focus on low-cost products and services are causing long-standing banks and financial institutions to be continuously chipped away. Nigel Wells (chief architect of the hsbc.com) and Jeff Wolfers (senior strategy manager of the hsbc.com project) from IBM United Kingdom Ltd., believe the answer to this problem is to return to the core values that made banks respected institutions in the community: trust, privacy, and personalised service. In 1925 these values were delivered face-to-face over a bank managers’ desk. Nowadays, other channels such as ATM’s, telephone banking and internet banking mean that it is nearly impossible for banks to implement these essential core values, of which the organisations originally stood allowing them to provide that essential and desired personalised touch.

The alternate delivery channels have greatly reduced the transaction costs for the banks. But banks can realize the full benefit of the roll out of alternate channels only if there is perceptible increase in the usage of these channels. It is imperative therefore that the banks take steps to regulate the customers to move to the new modes of banking.

On the bank customers’ survey, we also focused on education, because this might affect the demand for electronic banking products. For example, Kwast and Kennickell (1997) have illustrated how education play important role in determining household use of e-money products.

The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and