Electronic Banking Has More Benefits for the Bank than for the Bank's Essay

Electronic Banking Has More Benefits for the Bank than for the Banks Customers - Essay ExampleBecause node satisfaction has gained much significance in all industry segments, and banking organism a retail industry where rush of customers for their daily banking needs is huge, benefits of e-banking to the customers are being provided with extra vigour by the banking industry to attract more and more customers as banking market is very competitive. For banks, internet banking offers the strategic possibility of cutting prices, break dance customer service attract more customers and add-on with the cross-selling opportunities. Banks view electronic banking a very positive feature of their operate. E-banking has its own challenges and opportunities, challenges emerging from the serious ramifications of globular e-banking. In the global context, it is stated that the transaction costs have reduced drastically making it feasible to realise cross-border banking transactions electronica lly. Such an opportunity provides to the banks the potence of economies of scale. Such electronic cross-border transactions need to be cleared by banks by taking additional safety measures (Nitsure, 2004). Benefits of e-banking to Banks Cost-effective According to Orr (1999) electronic banking cuts the cost of each transaction at once. ... It cuts down the cost of the flush if it is served to the customer electronically in comparison to when it is physically delivered in hard paper via post. Irvine (1999) remarks that banks supplement cost by saving 40% than in hard copy. Both the customers of the bank and the bank itself get the benefit from reduced cost without affecting the preparation of effective and comprehensive operate. Loyal Customers According to a research organised by Forrester Research, 61% of the participants were of the view that if banks come forward to deliver the services as desired by them they would gladly remain customers with such banks (Dixon, 1999). Knowin g well what their customers want, banks are offering a hub of related services such as bill presentment and payment, financial planning, property planning, insurance, loans and brokerage services. The internet has facilitated this convergence of financial services, which was not possible otherwise from a centralised system. Banking web sites providing convergence of services to the customers deliver a more comprehensive experience to such customers who randomly visit the bank website to use the offered services. The objective of the banks behind such convergence of offered services is to hook the customers by creating loyalty, providing the opportunity of bundling of services, which can be realised in increased earning from such customers, using various services of the banks under the umbrella. additive Services Banks are offering financial portal services to their customers wherein various financial services and products like stocks and mortgages are presented to the customers, wh ich have opened up some other earning stream for the banks. It has become possible because of Internet integration.