Banking & online banking...,

Introduction

Banking, the business of providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions.




E-Banking...,The world is changing at a staggering rate and technology is considered to be the key driver for these changes around us (Papers4you.com, 2006). An analysis of technology and its uses show that it has permeated in almost every aspect of our life. According to Tero et al (2004) many activities are handled electronically due the acceptance of information technology at home as well as at workplace. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions. According to Heikki et al. (2002), the transformation from the traditional banking towards e-banking has been a ‘leap’ change.

The evolution of electronic banking started from the use of automatic teller machines (ATM) and has passed through telephone banking, direct bill payment, electronic fund transfer and the revolutionary online banking (Alter, 2002). The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted that among all the categories, online banking is the future of electronic financial transactions. The rise in the e-commerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life (Papers4you.com, 2006). According to the latest official figures from the Office of National Statistics (ONS, 2006) indicate that subscriptions to the internet has grown more than 50% from 15 million in 2000 to 35 million in 2005 in the UK. It has also been estimated that 60% of the population in the UK use internet in their daily lives.

The fundamental shift towards the involvement of the customer in the financial service provision with the help of technology especially internet has helped in reduce costs of financial institutions as well as helped client to use the service at anytime and from virtually anywhere with access to an internet connection. According to theorists (Elfrieda's et al., 2005) customer evaluation of the electronic services is influenced by attributions of success and failure in inter personal service situations. The use of electronic banking has removed the banking personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. Although the use of E-banking is provided for the benefit of the customers but these changes require increased work or involvement on the part of customers. These and other factors might be seen as lesser service provided in terms of customer service. But these assumptions would be wrong if the customer knows the value of using the electronic service.

Thus it can be concluded that a fit between task i.e. the banking; technology i.e. the user interface and its reliability; and individuals i.e. the customers and their knowledge about using the service, is the key to successful E-banking services.


What is so great about Online Banking...,

All of us, whether we like it or not, have to manage our finances. These days, many people opt for online banking as their preferred method of handling their bank accounts. But what makes online banking so attractive to so many people? Here are a few of the advantages that make online banking such a hit.

Some people have a fear of online banking, wondering how the banks manage to keep Internet pirates from grabbing access codes and making off with the money. Financial institutions in particular have a number of checkpoints that make it virtually impossible for someone to grab your credentials. In fact, your bank accounts are probably safer today since the advent of online banking than they were just twenty years ago.

Perhaps the single most attractive feature of online banking is the fact that you can access your accounts any time of the day or night. This feature allows you to check on available balances any time you like. You can know if a check or some other sort of debit has cleared your account, see if any pending deposits have been posted, and verify your balance at a time that is convenient for you. As an added bonus, you can transfer funds from one account to another, with the greatest of ease.

Many online banking packages also have a package you may use to create and mail checks directly from your account, rather than you having to do the checks manually. Basically, you establish a profile on each of the vendors you wish to pay with an electronic check. When you are ready to do your monthly bills, you simply log into your account, pull up the information on the vendor, and authorize a payment in the amount you wish. The check is printed and mailed on your behalf. Many people find the process takes them a fraction of the time it takes to write out a check by hand, address an envelope, lick a stamp, and then mail the payment.

Online banking also encompasses the ability to set up recurring payments. It is possible to establish electronic transfers from your account directly to your vendors each month. This process allows you to not even have to worry about whether or not the phone bill has been received and paid. Of course, you can change the status of a recurring payment any time you wish, and online banking systems always allow you to see what recurring payments have been processed in your current billing cycle.

Online banking can be a great help to anyone who would rather spend time in ways other than standing in line at the bank, or arranging your schedule to accommodate the hours that a bank is open. If you do not currently utilize online banking, contact your financial institution today. You may be surprised in the many ways online banking will make your life easier...