Online Banking

Internet banking refers to an online facility which provides an alternative channel for delivering banking or financial services and enables individuals to access their accounts anytime and anywhere through a bank’s web site (Z. Liao, Z., and M. T. Cheung, 2012). In other words, online banking named as E-banking, internet banking or virtual banking. Generally, the operation of online banking is connect to the core banking system designed by bank and then contrast to branch banking which refer to traditional way of bank customers accessed to banking services. Nowadays, internet banking is one of the most important businesses in electronic business around the world (Ariff et al, 2012). Most of the conventional banks have to operate and provide the online banking service to their customers as needs by

The threats and opportunities in the e-banking line are increased due to the introduction of internet. The threat of e-banks and the point of equality concept are very highly used by the current competitors. There are rivals such as CIMB clicks, Hong Leong online banking and many more which cause Maybank2u.com unable to monopolize the market. As a consequence, the customers can exchange brands easily. Moreover, the customer of Maybank are likely to concern with the safety matter of online banking. They prefers to do transaction in the classic ways more than online banking due to their lacking of confidence toward security and safety matter of online banking. They are scared of hacker that might intercept their information. But other than that, the bank may significantly affected by the present macroeconomic situation across the global and adjustment in economic policies in South East Asian countries. This happened because Maybank’s goal is to widen Islamic business in markets such as Singapore and Indonesia as part of their target on the ASEAN

Subsequently, Internet banking is the remarkable step get by banking system to make it smoother in case of banking activities. In Sri Lanka, majority of the banks provide internet banking facilities to make

(Federal Financial Institutions Examination Council,2003). The usual E-banking services provided by banks are account management; bill payment and presentment; new account opening; consumer wire transfers; investment/brokerage services; loan application and approval; account aggregation; cash management ; small business loan applications, approvals, or advances; commercial wire transfers; business-to-business payments; employee benefits/pension administration etc. Online banking or E-banking has spread around the world and has become common these days. In general, banking services have changed over the past three decades to meet the consumers’ needs (McKinsey & Company, 2012); at that time, when the consumer needed money for purchases or to make a transaction, he needed to go to the bank by himself during the bank hours and perhaps waited in a long line to meet a human teller to implement his transaction. Nowadays, due to the E-channels that surfaced with the development of technology and the Internet, the processes of banking have changed. The consumer can make a transaction from one account to another while sitting in his couch anytime and anywhere.

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

As it was found in one instance, the current developments in 2003 have created several new technology based solutions for banking services. Considering the emergent approach one again means that this is the nature of strategy that Barclaycard must consider carefully as it presents a completely new direction for the organization.

There are various advantages and disadvantages of introduction of technology in banking system. The work of the law starts where there are disadvantages to the public in general and individual in particular. There are certain challenges that banking is facing which are due to obligations imposed by law on the one hand and the invention of new technology and its adoption at the other. This necessitates introduction of new guidelines by the RBI. There is no dedicated Internet banking laws in India but the RBI has issued some guidelines in this regard via notification number DBOD.COMP.BC.No.130/ 07.03.23/ 2000-01 on 14th June 2001. Reserve Bank of India, being the highest authoritative bank and the regulator of all the nationalized banks in India, had set up a ‘Working Group on Internet Banking’ to examine different aspects of Electronic Banking. The Group had focused on three major areas of E-banking, i.e. (i) technology and security issues, (ii) legal issues and (iii) regulatory and supervisory issues. As per the guidelines issued for implementation by the banks, they are required to designate a network and database administrator with clearly defined roles. They should introduce logical access controls to data, application and system software, utilities, telecommunication lines, etc. All computer accesses, including messages received, must be logged. Security violations (suspected or attempted) should be reported and follow up action taken should be kept in mind while framing future

Having done an exclusive audit on Bank Solutions’ operations and process protocols, several security loopholes were realized and inevitably are great threat-posing factors to the institution. Responsively, new technology and security measure have to be implemented in order to fill the gaps and heighten security standards in order to enhance customer privacy, information protection, the institution’s credibility and generally adherence to the standard security policies and controls.

We have begun a new age of financial globalization solutions, albeit financial services have been a digital industry since 1998--but not without regulation. So far regulatory reaction to the dramatic changes being ushered in by fintech companies and their new applications, has been slow, giving these disrupters much-needed time to spawn.

Although late by a year or two, the established brand name banks have taken a significant lead in market share as measured by number of unique visitors.

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

In this 21st century the Internet has made revolutionary impact on all aspects of human life. Out of all, banking operations have greater impact of ICT on its day-today happenings. An e-cash payment system is one of the evidence of impact of internet and information Communication technology jargons. In this process a consumer/client opens an account with the banking organization or other which could give and receive money in the digital coins form. In the case client 's account is deposited in the form of real money, as it is attached to the client 's checking account in reality.

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

In 2010 the total amount of internet bank users was estimated to be 100,000,000, which is about 8.5 percent of India’s population. Recently, the speed and excellence of banking has changed by the latest technological advancements. Core banking solutions is the most important facility which improves the competency of banking services. Further, introduction of automated teller machines (ATMs) enabled customers to perform banking operations anytime. ATM is a highly accepted e-banking service among customers and works as an alternative banking channel (Hans & Kamath, 2013). Initially it was limited to the disbursal of cash but now it is used for delivery of a wide range of banking services such as accessing the account information, depositing cash, withdrawing money, generating mini-statement and online shopping, recharging online, booking tickets and many such facilities.