Online Banking And Its Impact On The United States

Convenience way of operating banking transactions: Online banking is a highly profitable channel for financial institutions. It provides customers convenience and elasticity and can be provided at a lower cost than traditional branch banking (Williamson, 2006). The convenience of online banking is helping people gain greater control of their finances and contributing to changing patterns in cash withdrawal and day to day money management. (Beer, 2006)

Internet banking has many benefits for consumers and these advantages also can explain why it is growing in popularity.

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

The history of Internet banking has evolved from simply allowing customers to check balances online, to now being able to trade stocks and bonds from the comfort of their own home!

In this essay I will be writing about Online Banking, its use, how it evolved, impacts and how it benefited the global businesses. In late 1980s, the term online banking became popular. But in 1990s, the financial institutions implemented the online banking services. Initially it took some time to adopt the customers to do monetary transactions through online banking. Afterwards, with increasing use of computers, internet and World Wide Web, banks introduced new form of banking called Online Banking. It is a service from a bank to perform banking transactions through internet. Transactions like paying bills, transferring funds, applications and payments over loans & mortgages, accounting statements viewing, viewing account’s transaction history, looking for products and services provided by banks, getting answers of queries instantly.

Banking online is one of easiest and cheapest ways to access your account. Most financial institutions offer online services that include opening accounts, account inquiries, transfers, bill paying, an electronic account register, and access to important information regarding your financial institution. Another benefit of online banking is the 24-hour availability. E-banking, or electronic banking, is a banking system available through the internet. It can be used anywhere using ATM machines, the Internet, or a cellphone. E-banking services can be accessed no matter how far away you are from your financial institution. E-banking can also be used by anyone that has money and has an account. You can use e-banking to access most of the

Virtual banking services which had been deployed since 1980 by Bank ONE of Columbus, Ohio (Darlin 1997), had a tremendous growth since then to 1,130 banks deploying online banking services by

ONLINE BANKING Online banking also referred to as internet banking, uses the internet as the delivery channel by which one uses to conduct banking activities. Online banking will allow an individual to manage his accounts by doing the following activities; make payments, view accounts and inquire about the balances, apply for credit cards and loans electronically. In order to access accounts online, one should have browser software installed in their computers. This software will run the online banking programs stored on the banks world wide web server. Therefore, as per my understanding, I would define an online bank as one that provides transaction services to clients over the World Wide Web. Due to the minimal expenses online banks have,

The financial services sector is in the nascent stage of digital disruption. Its main functions are the same today as they were yesterday – people use financial services to exchange money, to save or invest, to finance, or to insure against risk (Barberis and Chishti, 2016). All financial services are a response to these four basic needs, and this will not change. What is changing, though, is the way these needs are being addressed. New technologies are delivering convenience, speed, and volume in quantities we have never seen before, making financial transactions easier, cheaper, and more convenient.

The banking system and ways that people can withdraw and/or spend their money has changed over the years and continues to do so. People originally made payments with physical money which moved onto credit cards, debit cards and contactless cards (Lambert, 2011). From 1971 electronic commerce appeared which brought along digital wallets like Paypal (van Ketel and Nelson, 2005).The banking system, includes commercial, investment and national central banks, has also been changing. Exposed weaknesses have been exploited and created

Online Banking is also one of the innovations especially in economics field. Online banking had and having huge impact on society and individuals. It also affects to economy as well as small and large businesses because online banking changed the way people make payments from one decade ago. Online banking is even faster than bank machines and it made payments easier.

Once technology was introduced to the banking world many things changed. Banking and any transactions related to banking had to be done in person. Along came the telephone, in which allowed banking to be conducted at home or work. A phone call is what it took to have transaction implemented. The age of ATM’s (Automatic Teller Machines) allowed banking 24 hours a day. Debit cards and Credit cards allowed us to transfer monies or put things on credit instantly. Next came the era of online banking and electronic transfers of money, which allows us to take care of many other transactions instantly. From the 1st day until today the every changing world of banking changes the way we live and we do business.

The increased competition has forced the banks to rethink the way they operated their business, reinvent and improve their products and services to make them more beneficial and cost effective. The technology in the form of e-banking has made it possible to find alternative banking practices at lower costs. More and more people are using e-banking products and services and because a large section of

Regardless of the large distribution of customer internet banking in various countries to date, banks look for more develop market. Now, market trends expansion are tentative. For example, customer insist of internet banking services in North America stuck in 2005, probably because of amplified security concerns related to increasing deceit character,

Due to the nature of the online environment it is difficult for banks to build trust and relationships with their customers. The Internet is extremely impersonal due to its global audience, the bricks and mortar location of the local branch with a smiling advisor is much more inviting in comparison to a cold lifeless computer screen. Also the learning process involved in using e-banking can be daunting, customers must invest their time and effort into learning more to use and navigate their way around the sites. Internet banking can also be time consuming to set up and registration numbers and access codes can be misplaced, stolen or forgotten. Although