Online Banking

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Online Banking

Chapter Number: 1

Chapter Overview

The chapter would focus on the complete and comprehensive history of online banking, focusing on its advantages and disadvantages. In addition, the various issues and concerns related to online banking would be highlighted, combined with the expectations of various banks and the actual results. A complete account of the development of online banking and the purpose of study would also be presented in the chapters, along with ethical considerations, limitations, research questions and definition of essential concepts, in order to form a strong foundation for rest of the study.

Background

The advancements in information and technology are bringing about positive changes in all the fields and different walks of life, including banking. The technological innovations and developments have not only increased the efficiency and effectiveness of bank operations but at the same time, it has also caused significant increase in the level of ease and comfort of the costumers, allowing them to operate their bank accounts without having to go through the traditional procedures. The traditional procedures are not only time consuming, but at the same time, they require the costumers to be physically present at the banks, thus creating a number of issues, including the security concerns of carrying cash along.

On the other hand, online banking allows the costumers to make bank operations from any place at any time, without having to visit the bank and abide by the bank timings. At the same time, the security concerns are resolved as money transactions take place online, and thus the procedure is both effective as well as convenient for the costumers and is encouraging more and more banks to move from traditional to online setup.

Expectations of Banks

The process of evolution of online banking was slow, but at the same time, it was continuous and thus led to the development of serious expectation on the part of banks, that were not fulfilled immediately. In the beginning, the process of development was considerably slow and banks were not successful in getting much online costumers, mainly because of the lack of information and knowledge regarding the same. A large number of costumers were simply unaware of the service, while other were not sure if t would be safe or not, thus keeping the number of online costumers los fro significant period of time (Kerem, 2003,Yee & Faziharudean, 2010).

The idea of online banking first emerged somewhere in 1980s, in Europe and United States at the same time, and was initially linked to the idea of home banking (Insley, 2012). With the passage of time, the services and offers continued to get refined and at the same time, the number of costumers also continued to increase significantly. The services mainly started in New York(CITE), making use of the video-tax system and then continued to grow and include various types of facilities and services in order to facilitate the costumers. It is essential to note that although there were certain considerations and concerns of the potential costumers regarding use of online banking, ...