Now a day’s information technology plays a vital role in banking sector. Day by day increasing change in technical know how , it leads to improve e-banking services of various banks. Traditional branch banking has taken a paradigm move towards services services like kiosk marketing machine, coin vending machines, Mobile banking, banking through Apps etc.. It provides various advantages to customer of various banks. Now-a-days people are educated to a higher level as compared to some years ago. E-Banking means providing banking products and services through electronic delivery channels like ATM, Internet banking, Telephone banking and other electronic delivery channels.SBI has over 4500 ATM centers in India approximately. Automated Teller Machine (ATM) is electronic computerized telecommunication device that allows a customer to directly use a secured method of communication to access their bank accounts or make cash withdrawals and other services. Internet banking highly useful to the customer one who have computer with internet connection, they need not visit bank branch for their business transactions. Customers can transact anywhere, anytime if they have internet connection. By dialing the telebanking number customer can get various facilities like cheque book request, balance inquiry etc.
Indian Banks have leveraged technology and introduced innovative banking products and services to attract and retain customers. In the present day banking upgraded information technology is built in for all the banks to attract more customers, provide efficient services and to survive in the competition apart from achieving the profit which is a main goal of the business. The banking industry has experienced a series of significant transformations in the last few decades for instance, Automated Teller Machine, Real Time Gross Settlement, National Electronic Fund Transfer, Instant Mobile Payment Service, Electronic Fund Transfer, Virtual banking, Electronic Payment Service, Electronic Data Interchange, Tele-Banking are such technological channels available to the customers for quick and efficient service anytime and anywhere. The present paper examines the new dynamics and technologies for funds transfer in Indian Banking System in the changing scenario. Keywords: Technology, RTGS, NEFT and IMPS
in the banking sector. Globalization and technological advancement like kiosks and internet brought many products and services like ATMs, Smart cards, Online Banking which is facilitating electronic payment, Plastic money services, Brokerages and foreign exchange transactions, which automatically leads to wide access of B2B and B2C business domains. The website technology has totally transformed the banking business. The success of Internet banking depends upon the well designed website of a bank. India has 155 scheduled banks with 99,218 ATM network (June-2012). SBI leads the pack with 22,469 ATMs followed by Axis Bank with 10,337 ATMs. In India E-Finance are governed by several acts like IT act-2000, Central bank guidelines on internet banking etc. Even it has many advantages; E-Finance in banking sector has associated with many risks like security risk, System architecture and design etc. So this paper discusses the impact of E-Finance on banking sector, its various products and services, diverse risk associated with electronic banking services and its solutions to tackle these challenges. The study is based on exploratory research mainly on qualitative analysis.
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Internet banking has become a hotcake in the arena of digital banking. Internet banking is modern technology based computerized system that provides one of the easiest banking systems to client with low cost and quick services. Internet Banking” refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent devices. Numerous factors including competitive cost, customer service, and demographic considerations are motivating banks to evaluate their technology and assess their electronic commerce and Internet banking strategies. As of January 2018, there are approximately 17.61 lakh users of internet banking. Most of the users adopt internet banking for fund transfer operation. About 7.18 lakh transactions including 2,175 crore Taka were performed through the internet banking platform in January 2018 according to the statistical report of Bangladesh Bank. Taking into consideration the necessity of internet banking, this study has been conducted. This paper mainly focuses on the internet banking configuration, operations and banker’s appreciation of using internet banking. This paper also focuses some ramifications of cyber threats in order to establish secure internet banking because they are the main pitfalls in order to establish trustworthy effortless internet banking system.
This particular research has been conducted in Afghanistan to study and evaluate the individual’s perception toward e-banking platform, and to further identify the challenges that are faced with this infant phenomenon. Despite of decades’ war and destruction in Afghanistan, still, it was observed that the private banks took a vital and special part in the recognition of e- banking services and products through their financial institutions in such a wide variety of context which can be an optimistic vision for the improvement of the future of electronic banking in Afghanistan. This research is descriptive, and a quantitative research technique was considered efficient for the fulfillment and attainment of settled objectives. Where a detailed questionnaire was the main primary data source plus various secondary data sources. And also, main hub of data collection was from AIB, AUB, Bakhtar and Aziz banks customers and employees.
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al (2008) found that a wide gap exists in human service in Indian banking while technology based services are exceeding expectations . Uppal and Chawla (2009) found that the customers of public sector, private sector and foreign banks in Ludhiana district of Punjab are interested in e-banking services, but at the same time are facing problems like inadequate knowledge, poor network, lack of infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an account . Indian customers' perception in the context of e-banking has been examined by Reeti Agarwal et al (2009) and found that people in the age group of 31-45 years using e- banking most frequently. Respondents opined that using e-banking for balance inquiry to be the most useful, closely followed by inter-account transfer of funds and they found e-banking least useful for lodging complaints . Slow transaction speed was found to be the most frequent problem faced, closely followed by non- availability of the server while using e-banking. Sharma (2009) opined that the trend towards electronic delivery of banking products and services is occurring partly as a result of consumer demand, and partly because of the increasing competitive environment in the global context . Kumar and Sinha (2009) cited various instances of hacking and phishing attacks reported throughout India. They remarked that cyber crimes prove that e- banking has several loopholes that can be easily exploited and users need to be extra cautious while making online transactions . Srinivas (2009) discussed various e-banking channels and suggested security tips for customers which include changing password frequently, abstaining from revealing PIN either via mails or phone, avoiding cyber cafes for net banking etc . In a study conducted by Mohammed and Shariq (2011) in the city of Lucknow, U.P to examine
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the acceptance and adoption rate for e-banking products and services. The cost of acquisition and maintenance of the ICT facilities is also a hindrance. The research also examined the characteristics of respondents who would accept e-banking products and services and interesting scenarios emerged. The educational level of respondents emerged as one of the factors that affect their ability to interact with the technology driven products and services. For example all instructions on Automated Teller Machines (ATMs) in Ghana are in English whiles Ghanaians are more comfortable with their local dialects hence once ability to read in English affected their ability to interact with the machines. 48% of the respondents identified their inability to read and write as a hindrance in accepting e-banking products and services. The study also revealed that age was a critical factor which determined the acceptability and adoption
E-Banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet or mobile phone. Customers access e-banking services using an intelligent electronic device, such as a Personal Computer (PC), Personal Digital Assistant (PDA), Automated Teller Machine (ATM), Touch Tone Telephone (TTT). While some literature restricts the use of the term to internet banking (Daniel 1999), elsewhere the term is limited to retail banking (Aladwani 2001) or both retail and corporate banking (Simpson 2002). The common definition for E-Banking, and the one used in this paper, comes from the Basel Committee Report on Banking Supervision (1998), “E-banking refers to the provision of retail and small value banking products and services through electronic channels. Such products and services can include deposit-taking, lending, account management, the provision of financial advice, electronic bill payment, and the provision of other electronic payment products and services such as electronic money”.
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Banks have traditionally been in the forefront of harnessing technology to improve their products, services and efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a wide range of value added products and services. The delivery channels include direct dial – up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking. The tremendous advances in technology and aggressive use of information technology has brought paradigm shift in banking operations. The banking technology has emerged as a strategic resource for achieving higher efficiency, control of operations, productivity and profitability. For customers, it is the realization of their anywhere and anytime banking dream. This has promoted the banks to embrace the technology to meet the increasing customer expectation. Today, banks are already loosing enormous amounts through cheques and credit card fraud. The security solutions of the future are the major concern for banks. If customers distrust the security it may create multiple problems. Banks will find it hard to launch Internet banking services if demand is low because of security doubts. Though the banks themselves believe that the security levels for bank transactions over the internet are sufficient, they also believe that their customers distrust existing security solutions, primarily because they are software based.
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C. SYSTEM ARCHITECTURE AND DESIGN RISK: Appropriate system architecture and control is an important factor in managing various Kinds of operational and security risks. A bank faces the risk that the systems it chooses are not well designed or implemented. For example, a bank is exposed to the risk of an interruption or slow-down of its existing systems if the electronic banking or electronic money system it chooses is not compatible with user requirements. Many banks are likely to rely on outside service providers and external experts to implement, operate, and support portions of their electronic money and electronic banking activities. Such reliance may be desirable because it allows a bank to outsource aspects of the provision of electronic banking and electronic money activities that it cannot provide economically itself. However, reliance on outsourcing exposes a bank to operational risks. Service providers may not have the requisite expertise to deliver services expected by the bank, or may fail to update their technology in a timely manner. A service provider’s operations could be interrupted due to system breakdowns or financial difficulties, jeopardizing a bank’s ability to deliver products or services. The rapid pace of change that characterizes information technology presents banks with the risk of systems obsolescence. For example, computer software that facilitates the use of electronic banking and electronic money products by customers will require updating, but channels for distributing software updates pose risks for banks in that criminal or malicious individuals could intercept and modify the software. In addition, rapid technological change can mean that staff may fail to understand fully the nature of new technology employed by the bank. This could result in operational problems with new or updated systems.
Electronic banking or e-banking is automated delivery of new and traditional banking products and services directly to the customer through electronic communication like computer, ATMs, and internet websites. The customer satisfaction level based on the analysis of data relating to 200 respondents indicates that there is significant correlation between age and occupation with other factors. In the analysis it was observed that particular age group have used these services, the satisfaction of the customer majorly influenced the convenience, awareness, and
industry in India. Over a long period of time banks have been utilizing electronic and telecommunication modes for distributing a wide range of value- integrated product/services. The transaction channels include private networks; public networks etc. and the devices include phone, computers, Automated Teller Machines (ATMs), etc. The extensive utilization of computers, laptops, tablet, mobile phones etc. make facile access to internet and World Wide Web. This form of banking is generally referred to as Electronic Banking, albeit the range of products and services offered by different banks vary considerably both in their content and sophistication. From the perspective of banking products and services being offered through internet, debit and credit cards, ATMs, mobiles, e-banking is nothing more than traditional banking services distributed through an electronic communication backbone.
In the current scenario, Indian customers are moving towards digital banking, slowly but steadily. Digital banking system touches the lives of millions of people and it is growing at a fast pace. Digital banking refers to the automated delivery of banking products and services directly to customers through electronic communication channels, most notably the Internet. Digital Transformation is far beyond just moving from traditional banking to a digital world. The Indian banking and financial sector has also welcomed this change. It is a vital change in how banks and other financial institutions learn about, interact with and satisfy customers. This transformation leads to the major changes in the banking sector, from product-centric to customer-centric view today, more and more Indian banks are trying to differentiate themselves in a fiercely competitive industry. Presently digital banking plays a very important role in banking customer life. It provides number of facilities to the people, banking service has become a need of the society. Now days banking provide services more than customer’s expectation.
Available online: https://edupediapublications.org/journals/index.php/IJR/ P a g e | 2306 affected in a positive way. All organizations exist and strive to become an integral part of the lives of their customers and therefore always strive harder to keep satisfying their customers through better channels of delivering their offerings. There are many factors which have an impact on customer satisfaction, one of the most important being service quality. Due to the varying nature of the products offered in manufacturing sector and in the services sector the definition and measurement of service quality, it was seen could not be the same for both. Especially, in the present era, with the emergence of internet as a major channel of service delivery, the need for a scale to measure the service quality in electronic media of services was felt strongly. Hence, service quality was taken up by the research scholars specifically in terms of the e-services which lead to the development of various models that helped in measuring e-service quality in the services sector.
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Based on the results of the recapitulation, the value felt by foreign exchange customers is good. This can be seen from the benefit score of 190.71 which is greater than the average cost score of 110.75, so the customer value of Banking's foreign exchange services is seen based on the benefit and cost ratio of 190.71 / 110.75 which is 1.722. This shows that Banking has provided benefits felt by Devise customers through the ease of transactions, complete transaction facilities, hospitality, politeness, the ability of service personnel, and the ability to fulfill promises. This is in line with the opinion of Barsky and Nash (2003: 213) which states that in the service industry, superior value creation can be done by providing easy transaction services along with all facilities properly. Image of Banking as a Foreign Exchange Bank
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This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. In a competitive market-place where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
One!of!the!countries!in!this!comparative!study!Saudi!Arabia!(SA)!is!characterized!by!a!growing! and! developing! economy! one! that! historically! has! been! centered! on! the! development! of! petroleum!and!related!industries.!However,!modern;day!Saudi!Arabia!is!a!country!with!rival! state;of;the;art!infrastructure!necessary!to!support!advanced!levels!of!business,!including!on; line!commerce.!The!geographical!locations!of!the!country’s!main!three!commercial!hubs!that! stretch!from!the!oil;rich!lands!of!Dhahran!in!the!east!to!the!capital!city!Riyadh!in!the!center! spanning! to! Jeddah! in! the! west! along! the! Red! Sea! are! separated! by! vast! undeveloped! areas.! This!sort!of!geography!favors!the!development!of!commerce!able!to!span!the!vast!areas!and!is! particularly!well;suited!for!the!development!and!adoption!of!electronic!commerce!applications! like! Internet! banking.! And,! from! a! consumer! point! of! view,! customer! banking! that! could! be! accomplished!via!the!Internet!means!customers!could!avoid!significant!wait!times!to!interface! with! tellers,! which! is! commonplace! among! SA! banks.! However,! strict! social! mores! often! determine!the!interaction!between!the!modern!secular!world!and!the!holy!Islamic!world.!The! second!country!in!the!study!is!the!United!States!of!America!(USA)!with!a!long!history!as!being!a! highly!developed!country!with!a!highly!diversified!economy.!The!USA!with!a!well;established! Internet! banking! sector! is! also! a! culture! with! far! more! liberal! social! attitudes.! The! findings! from!the!comparisons!of!these!two!diverse!countries!could!provide!useful!information!for!bank! managers!whose!task!it!is!to!formulate!IB!marketing!strategies!to!increase!IB!adoption/usage! in!the!future.!In!addition,!the!research!findings!of!potential!factors!influencing!Internet!Banking! usage!in!Saudi!Arabia!may!provide!useful!insights!for!other!countries!with!similar!developing! economies.!
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Economic growth of a country largely depends on its banking sector but technology was rapidly changed the ways of performing banking transactions which affected customer satisfaction level, cost of banking operations and productivity. So along with enlargement of customer service, banks should study the impact of E-banking on financial performance of banks. The study is based on extensive study of review of literature to know the present status about the impact of e-banking on performance of banks because expected impact is positive.
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Ayanda et al (2011) examined the perception of customers about information technology in the Nigerian banking industry and found that customers perceived Information Technology enhanced the effectiveness and efficiency of banking service and also create accessibility, smooth and mutual relationship between customers and bank. Kumbhar (2011) examined the customer satisfaction towards alternative banking channels of public and private sector banks of Satara City, Maharashtra and found that bankers should concentrate their efforts to enhance service quality, brand perception and perceived value in alternative banking to increase the level of customers’ satisfaction. Mohammed and Shariq (2011) examined the extent of usage of ATM in Lucknow and found that among the e- channels surveyed, ATM was the most adopted technology by the banks. Further, it was revealed that non-complexity of ATM technology and convenient nature of ATM to many customers, were the major factors encouraging the bankers in advancing to e- banking arena. Chattopadhyay and Saralelimath (2012) examined the customer preference towards use of ATM Services in Pune City and found that majority of the customers are highly satisfied with ATM services and view them as ―essential services. Sreelatha and Sekhar (2012) revealed that Information Technology change the pace of banking in the next few years. Mobile bank and internet banking are going to make indoor in the banking sector in the near future. Even though IT systems are complex and sophisticated but they are “energy guzzlers”. Bhosale (2013) investigated the usage of ATM services in Sangli District and found that more than 50% of customers have problem due to insufficient balance in ATM Centres and face other problems such as network failure. Krishnan (2013) studied the usage of ATM facilities in Mumbai and found that customers are not using the full range of facilities offered by ATMs. Many customers are apprehensive of using ATM based services such as cash/cheque deposit because of perceived risks. They do not use ATMS for utility payments due to fear / lack of trust on the safety and security of online payment system.
Social engineering practices (Spear Phishing, Pharming and Smishing) are most habitually used where perpetrators fake as legitimate companies appealing for personal details targeting profiled groups based on needs for goods and services, getting better their success; bypass social engineering, as a substitute targeting software ensuing in the automatic redirection to illegitimate mock websites; and use SMS text messages to aim mobile internet users (Williams, 2015). In a similar scheme Vishing involves a person calls pretending to be a bank representative seeking to verify account information (Irfana & Raghurama, 2013). Pharmers, on the other hand, shed a broad net for the credulous (Brody, Mulig, & Kimball, 2007). Pharming is the installation of malicious code on one’s computer without any acknowledgement or an e-mail attachment that installs malicious code on a computer which leads to a fake website insecurely resembling bank’s website and without knowledge one provide financial identity details (Irfana & Raghurama, 2013). Moreover, electronic banking credentials can also be gained by malware that is fixed on computers without users’ knowledge, normally by clicking on a link allied to fouled software in an unsolicited email (Williams, 2015). Malware has been intended to log users’ keystrokes, insert fake web pages (browser in the middle attack) and execute illicit actions on computers, in an endeavour to capture passwords and personal banking information (Williams, 2015). Malware includes keyloggers and spyware. Spyware is installed on a victim’s computer and with the use of a keylogger permits a fraudster to not only spy on what websites are visited, but also record what keys are hard-pressed such as online banking passwords (NSW Justice, 2011).
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