Online Banking

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Online Banking:
How Technology has Affected the Bank Industry
Aluscine Kabia
Diana Mickle
Jennifer Ross
Betty Tekeste
University of Phoenix
COM525: Managerial Communication and Ethics
Edward L. Dempsey
March 14, 2005

Modern technology has set the stage for today 's industries to adopt faster, more effective and efficient tools to improve their business and productivity. A vast majority of organizations within various industries are using new technology to introduce changes to their business operations. Simply stated, these changes are manifested in what they do, with whom they do it, how they do it, and the tools they use to get it done. However, it is worthwhile to note that, while technology can offer beneficial …show more content…

Another change for customers is the number of staff members that are now available to offer them assistance. According to the Department of Labor in 2004, "fewer employees will be hired to staff new branches than in the past." This is a considerable change for traditional bankers who continue to conduct branch and telephone banking. One notable change for this group is the higher fees they now have to pay for using the service of tellers whether in the branch offices or over the phone. Major banks such as Bank of America advertise free online banking on their website, but charge anywhere from six to twenty dollar service fees for checking accounts that offer unlimited teller access. Whilst such changes affect customer-bank interaction, the advantages brought as a result of the change are beneficial to both entities. With online banking, banks have a considerable marketing advantage in that the internet makes well-directed sales pitches easier by allowing them to interact directly with potential customers by online advertising (The Virtual Threat, 2000). Banking institutions have effectively utilized the internet 's ability to provide for customers the same economical advantages of automated services that they have benefited from for years through network banking (Bankrate, 2003). In this case, the "value added" to the banking business through the automation process of millions of transactions is offered to customers through online

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