In customer such as, saving in costs, its

In the present context banking takes place progressively
online, where traditional branch banking network has dropped whistle most of
the financial institutions tend to deliver their services via various
electronic networks. A standard shift in banking operations is gotten from the
incredible developments in technology and the hostile infusion of information
technology (Gerrard & Cunningham, 2004).
In the competitive landscape of the financial service industry technology has
become more and more dynamic. Completely new service concept and service
environment has been created in current developments. Technology has
transformed the very nature of selling and buying financial services. Customer
movement from traditional branch banking to more stand-alone banking is one of
the most fundamental fluctuations in the banking industry. In other words,
Internet, telephone and mobile phones in private banking (Lu et al., 2003) are the electronic delivery channels using
towards this transfer. Internet banking is a new category of information system
that uses the advanced resources of the internet to empower customers to
influence financial activities in virtual space (Shih
& Fang, 2004). Customers can use various kinds of banking services
ranging from bill payment to making investments through this internet banking
which is also defined as internet portal. The deregulation of the banking
industry joined with the occurrence of new technologies, are permitting new
competitors to enter the financial services market speedily and competently. The rise of the Internet has had an important
influence on the diffusion of electronic banking. Banking
is no longer assured to time or geography with the help of internet. Consumers
all over the world have comparatively easy access to their accounts 24 hours
per day, seven days a week. So that, both banks and customers get benefits out
of internet banking (Karjaluoto, Mattila &
Pento, 2002). Banks using online services is the probable savings in the
cost of maintaining a traditional branch network is one of the major advantages (Shih & Fang, 2004). In addition Turban et al. (2000) specified some of the
benefits of internet banking which enormously beneficial to customer such as,
saving in costs, its quick response to complaints, time and space it offers,
its delivery of improved services, all of which benefits make to have a better
banking.

Importance
of Internet Banking

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Today many of us guide
busy lives. The internet banking service is introduced in1994 and this service
not only for banking service, this will also attract in the financial services
and other business organizations (Frust, Lang
& Noelle, 2002). So internet banking is becoming much more familiar
to us. Before introducing the internet banking, banks offered number of
electronic services to customers such as ATM, Mobile or SMS banking and
telebanking. As technology has been enhanced and
people are more devoted toward performing their routine life activities with the
help of the Internet, the banking sector has also enhanced the availability of
its services by expansion its extent of competition toward an e-environment
along with the services of Internet banking (Raza,
Jawaid & Hassan, 2015). And also Banks obtain the benefit like lower
transactional costs, efficiency, holding profitable consumer base and expanding
the market area. Consumers also get different benefits of Internet banking like
convenience, ease of use, ease of understanding and time and cost savings. Therefore, Internet
banking provides many benefits to both banks and their customers (Karjaluoto, 2002).

Customer Point of View

 

Before introducing the
internet banking customers had to wait long hours in bank queues for withdraw
or deposit money and other banking transactions.  It consumes time and money when compared to
internet banking. Consumers all over the world have relatively easy access to
their accounts 24 hours per day, seven days a week (Karjaluoto, 2002). According to a study the
need of Internet banking has been analysed to provide satisfactory services to
the customers who make them a delight (Rod et
al., 2009). Turban et al. (2000) indicated
that Internet banking is extremely beneficial to customers because of the
savings in costs, time and space it offers, its quick response to complaints,
and its delivery of improved services, all of which benefits make for easier
banking. And a similar study conducted in India
determines that customers influence of the internet banking because of attitude,
perceived risk, perceived enjoyment and trust determine the customers’
behavioural intentions to use internet banking (Bashi
& Madhavaiah, 2015). Generally, with internet
banking customers can maintain a variety of benefits at a low cost and enjoy
their privacy without any confusion.

Bank Point of View

 

Today,
the Internet is examined as a part of a strategic plan by the banks and the
technological development in the Internet is helpful to change the way banks
operate, transport and compete (Sadeghi &
Hanzaee, 2010). From the bank point of view, one
advantage of banks going online is the potential savings in the cost of
maintaining a traditional branch network (Shih
Ya – Yueh & Fang, 2004). Also, they
introduce eco- friendly environment by reducing paperwork. And it will reduce
the number of branch network and try to minimize the employees of the bank. Since
the technology has been improved and people are more addicted toward performing
their regular lifestyle activity with the help of the Internet, the banking
sector has also improved the
availability of its services by involving its level of competition toward an
e-environment along with the services of Internet banking (Raza, Jawaid & Hassan, 2015).