Uses of Internet in Banking Essay Example for Free

Uses of Internet in Banking Essay Online banking is a technological advancement that has brought about such a change. The banking industry has adopted virtual banking to improve business process, infrastructure, and customer relationships. These changes have had a major impact on the banking business, but more transparently on the customers of online banking. The matrix measures for the improvements added by online banking can be evaluated on comparable levels of service, efficiency and cost satisfaction, for both the provider and consumer of this technology.E-banking has had a considerable impact on todays banking business. Banking activities such as; account inquiries, depositing or transferring funds and ordering checks, can now be done remotely, 24 hours a day and seven days a week Banking through the internet (Online) provides customers with a variety of services that are either free or have a minimal fee . The advantages of online banking to customers can be summed up with five words; convenience, ubiquity, transaction speed, efficiency, and effectiveness. Online banking is more convenient and ubiquitous for consumers because the internet is open 24 hours, and can be accessed from anywhere in the world. Transactions are in most cases as fast as clicking buttons on ones computer screen, and often faster than ATM processing. Banking online is more efficient because bankers can access and manage multiple accounts through one online bank account. Online customers are able to take advantage of simple features that enable them to check balances, transfer funds between multiple accounts, pay bills through the automated process of direct billing, and use direct deposit for faster processing of paychecks. Banking online also offers new sophisticated tools to manage assets, read stock quotes and rate alerts, apply for loans and to change or update account information through the use of online forms. Still, some traditional bankers are weary of online services despite its notable rewards. For instance, security worries of identity theft keep many from banking online. Banks also advertise various types of loans, investment accounts and insurance products that are easy to purchase or open with an online application. The growing use of new credit scoring software allows banks to advertise a guaranteed answer or 24 hour approval on such applications. E-tools for conducting such services have completely changed old banking processes, and provide new, more convenient ways of banking, that Banks are using to lure customers into their business. The customers of online banking reap many benefits from the added convenience of online banking, but the nature of banking has completely changed and requires new skills. For instance, basic personal computer skills are a must for bankers wanting to enter the online banking world. Bankers will now need to be able to maneuver through the numerous tabs, buttons and icons on their computers, to be able to access their accounts, and complete transactions. Officials of the Internet-only bank, BankDirect, acknowledge that banking online is a service best suited to computer-savvy clientele. A look into the future of the banking industry shows that banks are not moving away from virtual banking, but are instead promoting new uses of online service, and improving the existing features. Banks world wide are implementing the use of online services to better their business efficiency, and bankers all over the world are looking for these efficient services to become available to them. As online banking attracts more and more customers through industrial innovations and improvements, it is a clear sign that the internet is the future place for banking business.