Objectives of e banking. Objectives and Importance of Banking 2022-10-30
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E-banking, or electronic banking, refers to the use of electronic means, such as the internet or mobile phone, to conduct financial transactions and access banking services. E-banking has become increasingly popular in recent years due to its convenience and efficiency.
The main objectives of e-banking are to provide a convenient and efficient means for customers to access banking services and conduct financial transactions, and to reduce the cost of providing these services for banks.
One of the main benefits of e-banking for customers is the convenience it offers. Customers can access their accounts and conduct financial transactions at any time and from any location, as long as they have an internet connection. This can be particularly useful for customers who live in remote or rural areas, or who have busy schedules and cannot always make it to a physical bank branch.
E-banking also offers a number of other benefits for customers. For example, it can help them to better manage their finances, as they can view their account balances and transaction history online, and set up alerts to notify them of account activity or when their balance falls below a certain level. E-banking can also make it easier for customers to pay bills and transfer money to other accounts, as they can do so online without the need to visit a bank branch or write a check.
In addition to the benefits for customers, e-banking can also provide significant cost savings for banks. By offering online banking services, banks can reduce the need for physical branches and the associated costs, such as rent, utilities, and staffing. This can help banks to reduce their overall operating costs and improve their profitability.
Overall, the main objectives of e-banking are to provide a convenient and efficient means for customers to access banking services and conduct financial transactions, and to reduce the cost of providing these services for banks. E-banking has become an integral part of the modern banking industry and is likely to continue to grow in popularity in the future.
Objectives and Importance of Banking
Immediate Payment Services IMPS The Immediate Payment Services or IMPS is a crucial factor in internet banking which offers all-day interbank electronic fund transfer with the help of cell phones. Theoretical Framework is explained in this chapter. Tan Sri Zeti Aktar Aziz, 2003; Chai Lee Goi, 2005 Studies of Chai Lee Goi 2005 , Malaysian banks proper understanding and planning for appropriate develop E-banking strategies to achieve successful in the local and global marketplace. Reduces The Chances of Error E-banking has reduced the chance of human error. The ATM system serves customer with the simple transactions for example checking balance, withdrawing funds or depositing and transferring money. ATM: an automated teller machine computerized telecommunications device that provides the customer by inserting a plastic card with a chip to access financial transactions in a public space.
Bank provides loans out of the deposit that they receive and charges interest on the amount from customers. Federal Financial Institutions Examination Council, n. According to Newman and Cowling 1996 believes that profitability and survival in a business is the excellent service quality to customers. In the year of 1997 that the first local banks in Singapore namely DBS and UOB offer internet banking services, followed the bigger foreign banks HSBC, Citibank and Standard Charted Bank also provide financial services delivery through interne. The development of service delivery channels such as E-banking, have created a new type of economy it also increasing knowledge strength in areas of business, and new forms of business IGI Global, 2009. On the other hand, youth shows more interest at using the E-banking services.
Christopher Gan et al. Taiwanese commercial banks have been quick to realize the competitive facing, thus in May 1999 offer E-banking services, such as fund transfer and account summary inquires. Banks enable merchants in conducting trade by provide them proper payment facility, issuing letter of credit, discounting bill of exchange and providing them other guarantee documents. Rizal Ahmad and Francis Buttle, 2002 Ramsay and Smith 1999 examined the Australian channel usage for telephone banking is employed by bank customers because its accessibility as well as convenience factors. Thus, the banking industry has tried gain the technology by ATM to take the advantage productivity and customer services for carry out the daily transaction. Overall, internet banking it needs securities.
It is a safe tool to be used to transfer instant money through banks across India. So in this survey would like to improve the usage of e-banking with analyze the factor influencing the adoption of E-banking by younger customer. SECONDARY DATA — The sources of secondary data are newspaper, internet, websites of IBA, journals and other published documents. In January 2001-2002, locally incorporated foreign banks were allowed to set up communication website and transaction website. Banks accept deposits from public under different categories of accounts like saving account, current account, fixed deposit and recurring deposit account.
To test a theory of the Technology Acceptance Model TAM Davis, 1989 and examines the factor that influence the adoption and acceptance of the information technology and system of internet; in the banking sector particularly for internet banking Sara, 2007. All systems are connected to each other online which facilitate easy transfer of funds. . E-banking has separate in the variety types of the following, Internet banking or online banking , telephone banking, mobile phone banking, and ATM Automated Teller Machine. It has widely contributed to changing the office environments of the bank branches.
The banks are responsible to assist the customer in protecting their account safety. The financial institutions that develop the online banking such as bill payment, money transfer and mobile E-banking, trough this services E-banking allow customers using more services. The system includes for E-banking to enable financial institution customers, individuals or business, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the internet. Banking institutions play a key role in economic development of country as it is ensures liquidity of funds by movement of funds among people. It collects people savings and provides loan out of these savings to entrepreneurs and companies for their expansion programs.
In the late of year 1999 Natinal Bank of New Zealand NBNZ and Bank of New Zealand also offer internet banking, followed the last quarter of 2001 there were around 480,000 regular internet users utilizing internet banking facilities to conduct their banking transaction through E-banking. These institution pay interest on deposit to savers and charges higher rate of interest from borrowers. The change in consumer behaviour is reflected in the increasing of electronic transaction system in our country. Real-Time Gross Settlement RTGS RTGS can be termed as quick settlement of funds transferred individually on an order by order basis. More customers would like to select Internet banking and ATM transactions by gaining the acceptance of electronic transaction in Malaysia with now over one million. The study of Jane, 2004 E-banking marketplace resulted that the consumer adoption with the success of E-banking products and services. According the survey of SKMM 2008 the percentage share of the household user base across age groups is under 15 to 50 and above.
By using these electronic devices bank customers can access their banking accounts, such as internet banking, telephone banking and mobile banking. The younger consumers are more likely to adopt the delivery channels such as internet banking compare to telephone banking, because the lack of face to face contact are less important their think. Electronic transactions are termed as the cheapest medium of doing transactions. There are the several factor affect Singapore adoption towards E-banking such as convenience, accessibility, confidentiality, compatibility, PC proficiency, economic benefits, complex procedures and innovativeness. The following figure 1 show the available of E-banking system. The potential of youth in the financial services sector are seen as particularly attractive. The reason of the author to research youth market is because of the young people have substantial purchasing power thus, many banks are tend to seeking young customer and targeting internet banking into their market.
This service helps customers to have anytime access to their respective bank accounts. Secondary Data: Data collected from existing sources like, company annual reports and others. What are the objectives of E-banking? Capital Formation Banking accelerates the capital formation rate within the country. As a result, the basic principle of banking services such as security was the potential benefits from electronic delivery channels by increase confidence of the banking public. Yet, new applications have been discovered to make it better in the coming years.
RBI prints and issues all currency notes for the public. The mobile banking available for: AmBank, Bank Islam Malaysia, CIMB Bank, Citibank, Hong Leong Bank, MayBank and Public Bank etc. QUESTIONNAIRE Here in my research I set 13 simple questions and requested the respondents to answer these questions with correct information. You can easily track if any fraud is done by anyone in financial transactions. According to a survey by Siddharth Agarwal 2009 , that main problem found customer have a fear of hacking of account and thus do not go for internet banking, and hence bank are trying their best by proving the best security options to the customer.
