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A. Will Banks Control Online Banking?: -

a) Internet Banking in India: -

Online banking is expected to explode in the next few years. We will be entering the age of non-physical exchange of cash aided by complete transparency leading to perfectly competitive electronic market place and inevitably to customer supremacy. Growth in online banking will be driven by the following reasons:

• Increasing access to low cost electronic services
• Emergence of open standards in the banking industry
• Improved customer awareness
• Entry of global majors in the market
• Integration of banking services with e-commerce and emergence of e-cash
• Convenient international transactions as Internet eliminates geographic boundaries
• Shift from one-stop shopping to unbundled product purchases











 Internet Banking – An Overview: -

Internet Banking sites can be segregated into four categories from Level I, which offer just minimum functionalities such as access to one’s deposit account data, to Level IV sites that offer sophisticated services. To be successful, an Internet bank must offer:

• High rates on deposits
• 24 hour access
• Free checking and bill payment facilities with rebates on ATM surcharges
• Credit cards with low rates
• Simple and easy online applications for all accounts including personal loans
• Innovative products
• High quality customer service

b) Real Threats: -

• A majority of leading online brokers are beginning to offer banking products and services as part of their overall offers.

• They are actively seeking to capture “excess” balances in existing checking and saving accounts by offering better rates.

• There are other threats to banks as well. Several leading system providers have developed “bank-in-a-box” solution – unbranded, electronic, full-service, virtual-bank system – that can be bought, branded, and offered to consumer by any authorized company that wishes to provide banking service.
c) Online: -

An online service that merely mimics an offline one has a second problem as well; it doesn’t give customers an adequate inducement to move a significant portion of their banking online.

As a result, most customers tend to tend to treat online banking as no more than an extra channel to check their balance and transaction histories, and they continue to do the rest of their business at the ATM or the teller window.

A vicious offering increase the banks’ total costs. This makes the banks reluctant to make further large investments in the online channel, which thus, does nothing to move customers away from tellers and ATMs.

In fact, consumers didn’t stop using tellers to the extent that banks has hoped, but they also used ATMs so frequently that the reduction in cost per use was more than offset by the higher volume of transactions.

The study of Information Systems through broadband connection, through satellite, through a network or through a view chat.

This online information system provides information about all aspects, Information providing on the demand of the subscriber.

This online information system may be of study program, a graduation program or sharing of data through internets, extranet and internet.