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CURRENT TREND IN INTERNET BANKING (SUBJECT -ENGINEERING ECONOMICS AND MANAGEMENT )
The document discusses internet banking, explaining its definition and levels of service from basic information access to fully transactional capabilities. It highlights advantages such as 24/7 access, convenience, and cost-effectiveness compared to traditional banking, along with the increasing adoption of e-banking in India. Furthermore, it mentions government initiatives to enhance internet connectivity to promote online banking in rural areas.
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CURRENT TREND IN INTERNET BANKING (SUBJECT -ENGINEERING ECONOMICS AND MANAGEMENT )
- 1. CURRENT TREND IN INTERNETBANKING VRAJ PATEL SY CE -2 ENROLL NO. -150410107082 SUBJECT -EEM
- 2. WHAT IS INTERNETBANKING? ļµ Internet banking involves consumers using the Internet to access their bank account and to undertake banking transactions. ļµ At the basic level, Internet banking can mean the setting up of a Web page by a bank to give information about its product and services. ļµ At an advance level, it involves provision of facilities such as accessing accounts funds transfer buying financial products or services online. ļµ This is called ``transactional'' online banking.
- 3. ļµ There aretwo ways to offer Internet banking. 1. an existing bank with physical offices can establish a web site and offer Internet banking in addition to its traditional delivery channels. 2. Second, a bank may be established as a "branch less, Internet only, or virtual bank" without any physical branch.
- 4. BANKING SERVICES THROUGH INTERNET 1.Levels of Banking services 2. Structure of Banking services
- 5. Levels of Bankingservices 1. The Basic Level Services use the banks' websites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customers' queries through e-mail. 2. In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc. but do not permit any fund-based transactions on their accounts.
- 6. ļµ The thirdlevel of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. ļµ Most of the banks providing Internet banking products and services offer, to a large extent, an identical and standard package of banking services and transactional capabilities.
- 7. STRUCTURE OF BANKINGSERVICES Basic level of Internet Banking Services : ļµ customer account inquiry ļµ funds transfer ļµ electronic bill payment.
- 8. ļµ Second OrPremium Level Internet Banking Services It includes basic services plus one or more additional services such as ļµ 1) Brokerage. ļµ 2) Cash management. 10) Foreign exchange trading ļµ 3) Credit applications. 11) Insurance. ļµ 4) Credit and debit cards. 12) Online trading ļµ 5) Customer correspondence. 13) Opening accounts ļµ 6) Demat holdings. 14) Requests and intimations ļµ 7) Financial advice Requests and intimations. 15) Tax services. ļµ 8) E-shopping. 16) Standing instructions. ļµ 9) Investments. 17) Asset management services
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- 10. Traditional Banking Vs.Internet Banking ļµ In traditional banking, the customer has to visit the branch of the bank in person to perform the basic banking operations viz., account enquiry, funds transfer, cash withdrawing etc., ļµ E-banking enables the customers to perform the basic banking transactions by sitting at their homes or at offices through a desktop or laptop round the clock globally through electronic media. This is called any time, any where banking. The customers can access the banks' website for viewing their account details and perform the transactions as per their requirements. Customers can make use of these services with no restricted banking hours, no queues, no tellers and no waiting.
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- 12. Advantages of InternetBanking (i) Round the clock banking E-banking facilitates performing basic banking transactions by customers round the clock globally. In fact there is no restricted office hours for E-banking. (ii) Convenient Banking Customers can perform basic banking transactions by simply sitting at their office or at home through PC or LAPTOP. No personal visit to the branch is required for routine basic transactions.
- 13. ļµ (iii) LowCost Banking The operational costs have come down due to technology adoption. The cost of transactions through internet banking is much less than any other traditional mode. There is also much saving on the cost of infrastructure as the banks can have access to a greater number of potential customers without the commitment costs of physically opening branches. requirements of staff at the banks get reduced to a greater extent. ļµ (iv) Profitable Banking The increased speed of response to customer requirements, can enhance customer satisfaction and consequently can lead to higher profits as a result of handling more number of customer accounts.
- 14. ļµ (v) QualityBanking Internet banking allows the possibility of improved quality and an enlarged range of services being made available to customers. (vi) Speed Banking The increased speed of response to customer requirements will lead to greater customer satisfaction and handling a large number of transactions at a lesser time. Thus, it increases the customers' convenience to a greater extent and facilitates better customer retention.
- 15. ļµ (vii) ServiceBanking Banks can also offer many cash management products. Instant credit, one day credit, immediate payment of utility bills, instant transfer of funds etc., is possible under E- banking.
- 17. SERVICES PROVIDED BYICICI BANK THROUGH INTERNET ā¢ ONLINE BILL PAYMENT ā¢ FUND TRANSFER ā¢ SHOPPING ā¢ TICKET BOOKING ā¢ PREPAID MOBILE RECHARGE ā¢ SHARE TRADING ā¢ CHARITY
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- 20. According to areport by Boston Consulting Group (BCG), In India, out of 1.2 billion s, only 200 million people having bank accounts, which is only 17 % of Indian . according to McKinsey report (2011) (, with 120 million internet) , India has third largest internet in the world after China and the US and India targeted for 330ā370 million internet users in 2015 which will make it second largest internet . In same report, it is mention that in made positive improvement in e-commerce . Further it is reported that 7% of account holders in the country are using the Internet for banking transactions, while branch banking has fallen by a full 15 percentage points.
- 21. According to comScore,423.5 million people accessed online banking sites worldwide during April 2012, reaching 28.7 percent of the internet audience. 45 percent of the internet audience in North America accessed bank sites Europe ranked second by penetration (37.8 percent reach) with Latin America (25.1 percent) rounding up the top three. Asia Pacific saw the strongest growth rate of 5.1 percentage points to 22.0 percent of the internet audience accessing bank sites in April 2012. When it comes to digital banking in Asia, the Mc Kinsey & company survey said, "India leads growth in Asia in mobile and Internet usage for banking.ā
- 22. CONCLUTION All the majorBanks in India are trying to promote online transactions in the country including the rural parts of the Country. Being a huge fan of e-Governance, Indian Prime Minister ā Mr. Narendra Modi has initiated a project estimated at INR 20,000 crores to build a broadband highway connecting 2.5 lakh panchayats across the country. Once fully set up, this infrastructure would help the rural India connect with the urban India while boosting the rate of online transactions and internet banking in the country.
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