Internet Banking

Understanding the usage of internet banking might be difficult for a beginner at the first go. Though there are some sites which offer a demo on how to access online accounts, but not all banks offer this facility. So, a person who is new, might face some difficulty.

The use of technology to keep up to date on the activity of bank accounts is an important step that I use myself. I use a phone application to keep updated on all activity that affects my

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

I also am assuming that most internet users regularly check their banks policies on how to protect themselves.

In many developing countries it's common for a person to have a mobile phone but not a bank account. In fact, more than 1 billion people fit this description, and the number is only likely to increase. To that end, many companies are considering how to give residents access to banking services via their handsets. The GSM Association predicts that by 2012, nearly 300 million of the previously "unbanked" will be using some form of mobile banking.

The use, acceptance, adoption and application of internet technology to businesses to boast their performances are not something new. Saffu et al., (2008), states that there has been a significant increase in the use and application of e-commerce in businesses in the past decade. E-commerce has benefits such as reduction in costs, increased business opportunities, reduced lead time and providing more personalized service to the customers (Turban et al., 2008). Internet banking or e-banking is one of the many tools of e-commerce adopted by the banking industry. Tools of information technology such as internet banking have significantly improved the quality of services offered by the banking

Online banking also known as internet banking, e-banking, or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution 's website. The tools commonly used are computers, smartphones and in a limited sense telephone.

The number of individuals going to branches has dropped by 30% before two years, while nearly 80% of while some 70% of the Karachi banking population now uses some form of online banking service every month. More consumers are embracing mobile banking via their phone or tablet. Developments in technology have empowered banks to increase customer

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.

According to Pew Research Center, almost two-thirds of Americans today use smartphones and almost 19% of Americans rely on smartphones for other means than simply calling or messaging. Additionally, 84% of Americans own computers and almost 75% of Americans own a computer that is connected to internet. Whether it is by means of smartphones or computers, most of society stays connected through technology. Therefore, to keep up with the technological trends of society, online banking and banking apps have been created and now over 50% of Americans use online banking or some sort of banking assistant through their technology. In addition to this, the use of credit cards has greatly expanded and there are currently around 721.82 million credit card accounts in America according to research done by Statistica. These new financial technologies and increasing

twelve branches allows the bank to meet the local needs to customers. The actual system was established to conduct monetary and credit police, along with supervising and regulating banking institutions. Offering customers new services and making improvements, allows customers to want to stay with their current bank. Many banks have taken advantage of the online banking service. With online banking, customers can verify account balances, pay bills, and apply for loans online. Cross-selling services is another way for bank employees to let customers know about the goods and services they offer. For example, a business owner opens up a checking account but decides that he would like a safe deposit box to store personal items. He also decides to open up a personal checking account for him and his wife, and utilizes the online banking portal to pay their bills automatically, such as a mortgage payment. Certificates

The percentage of people who don 't trust the Internet with the security of their financial information dropped to 8 percent in 2006 from 20 percent in 2004. Meanwhile, the number of those who believe that paying bills online is safer than using paper checks increased during the same period, to 37 percent in 2006 from 24 percent two years earlier (Consumers less concerned, 2006). Compared to traditional payment methods such as check payments, phone payments, or wire transfer payments, online payments are considered better in terms of time and cost efficiency, convenience, and flexibility for people and businesses. The underlying questions that we seek to answer in this research paper is what factors determine how well online clients will accept online payments, measures should be taken by e-vendors to accelerate the acceptance of this technology, and what advantages does this form of payment have over mail payments. Further, it will also be important to consider the negatives of online payments and see whether there are any threats that may affect the credibility of e-payments as alternatives to paying bills by mail.

The figure 4-2 above shows the day to day banking methods that are preferred by customers of all ages. The diagram portrays that the most convenient and preferred way customers choose for their day to day banking activities is mobile banking. Nearly forty-eight percent of the customers use their mobiles for their daily transactions, example transfers, payments etc. Branch banking is the second method preferred by nearly thirty-two percent of the customers. Where online banking with nearly nineteen percent holds the third position atms are the least method customers prefer for their daily banking. None of the customers comment about telephone banking. These preferred methods actually focus the areas where banks should concentrate on providing good customer service. It is very obvious to target customers through their preferred banking methods. For example, in this above diagram it is clearly showing that mobile banking is the most preferred method and atm is the least preferred method and so a bank can earn more customers if it provides better customer service towards mobile banking than atms. Off course the

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

According to BBA (2014), if Alvin Toffler, author of the renowned “Future Shock”, was to have examined the evolution of banking services in the last decade, even he would have fallen far short in terms of his forecast of customer delight in the present era of online banking. When Toffler wrote his bestseller there were no credit cards, direct debits or unsecured personal loans. The only way to withdraw your money from the bank was to write cheques and spend time in long queues at the bank branches.