Money and transaction over the internet: Online banking

Type :

Term papers

Pages :

28 pages

Format :

.doc

Published date :

04/14/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
Role of Internet in the global banking sector
1. Electronic revolution
How does online banking work?
1. Advantages of online banking
2. Disadvantages of online banking
Online banking as for one stop bill payment
Buidling security for Internet finance
History of credit cards
1. Visual features of credit cards
2. Financial features of credit cards
Role of payment-networking organization
Current Internet banking scenario
Future of Internet banking
Conclusion
Bibliography

Abstract

The advent of internet has initiated an electronic revolution in the global banking sector. The dynamic and flexible nature of this communication channel as well as its ubiquitous reach has helped in leveraging a variety of banking activities. New banking intermediaries offering entirely new types of banking services have emerged as a result of innovative e-banking models. The internet has emerged as one of the major distribution channels of banking products and services, for the banks in the US and the European countries. Initially, banks promoted their core capabilities i.e., products, services and advice through the internet, then, they entered the e-commerce market where they were the providers\distributors of their own products and services. More recently, due to advance in internet security and the advent of relevant protocols, bank have discovered that they can play their primary role as financial intermediaries and facilitators of complete commercial transactions via electronic networks especially through the internet. Some banks have chosen a route of establishing a direct web Presence while others opted for either an owner of financial services centric electronic marketplace or being participants of a non-financial services centric electronic marketplace.

The trend towards electronic delivery of banking products and services occurs partly as a result of consumer demand and partly because of the increasingly competitive environment in the global banking industry. The internet has changed the customer's behaviors who are demanding more customized products\services at a lower price. Moreover, new competition from pure online bank has put the profitability of, even established brick and mortar, banks under pressure. However, very few banks have been successful in developing effective methods by using the internet and exploiting the opportunities offered by the internet. For traditional banks to define what niche markets to serve and decide what products\services to offer there is a need for a clear and concise internet commerce strategy.