In this article we bring to you How Internet has changed the Banking Industry. We will put forth the pros and cons of Internet Banking, among other interesting changing in the Online Banking segment. Not only is this topic important from General Knowledge perspective, but do expect questions from it in IBPS and SBI Interviews. Let us now have a look at How Internet Has Changed the Banking Industry?
How Internet Has Changed the Banking Industry?
Banks play an important and active role in the economic development of a country. After the nationalization of banks in 1969 and 1980, liberalization of economic policies took place in 1991.And In the context of banks it meant inclusion of Private Sector Banks and Foreign Banks in the banking system which along with them brings in modern technology in the system.
Bank customers are becoming very demanding and it is the extensive use of technology that enables banks to satisfy adequately the requirement of customers. Use of advanced technology has led to the shift from traditional banking methods to modern banking methods. Currently, the most common and useful technology based banking methods are online banking, Mobile banking, Video banking, Telephone banking, ATMs, Plastic money and so on.
Today, the concept of core banking has made ‘Any Where and any time’ banking a reality. Along with technology, banking services have also evolved and the delivery of various banking products are carried out through the medium of high technology at a fraction of the cost to the customer.
One such product is E-banking (or Internet Banking), which is gradually replacing the traditional branch banking. It is the latest and most innovative service and is the new trend among the consumers. It offers new opportunities for banks to provide added convenience to their existing customers and reach a large population of unbanked customers in both urban and rural India.
A significant use of internet banking is it allows one to make real time payment and settlement of funds along with remittances of funds from outside India.
ATMs became the major revelation for customers, since it offered the facility to avoid long queues in front of the cashiers in banks. It also provided them the flexibility of withdrawing money— anytime, anywhere.
Plastic cards (credit and debit cards) are those banking products that cater to the needs of retail segment and has seen its number grow in geometric progression in recent years.
Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as mobile phone or personal digital assistant.
Banks are already investing in mobile technology and security, developing smartphone apps, adding new features such as remote deposit of checks, and educating consumers. Consequently mobile banking adoption among consumers has been much faster than the adoption of online banking more than a decade ago.
Internet banking is highly comfort in our routine life, in fact this made our life simple and convenient and over all we are able to enjoy quality service smartly. It resulted in efficiency and time saving methods. Also Internet is the cheapest delivery channel for banking products as it allows the entity to reduce their branch networks and downsize the number of service staff. For banks Internet opens up new horizons for them and moves them from local to global frontiers