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Internet Banking Information Technology

Online Banking


Today, there is a lot of a change in the Banking Industry. It is growing continuously with new products and creative services, because of new products are introduced business conduct has transformed and had made a competitive environment of business. This change in form and function has been tagged as a banking revolution. Assignment Help online will discuss the same with this article.

The fundamental foundation of the survival of banks in this competitive world is experiencing a consistent change in accordance with the client’s needs. The banking business is continuously reacting to changes in the client’s needs and preferences. Expanding competition from financial institutions that are not the bank, changes in social and demographic trends, improvement of channel strategy, information technology.

Because of the environment of competition in the banking sector, there has been pressure on the use and development of alternative distribution channels. Looking for competitive advantages in the technical and competitive banking industry, banks have recognized the significance of isolating themselves from other financial organizations through distribution channels.

Today almost all of the banks are giving this facility to its clients to empower paperless banking. Online banking has opened a gateway for all clients to work beyond the limits. This enables individuals to do their banking transactions utilizing secure sites ensured by their banks.

Development of Internet Banking

The process of using technology in banking began with the utilization of punched card machines, for example, Ledger Posting Machines or Accounting Machines. The utilization of technology around then was limited to keeping the account of the bank.

Internet banking was further developed with the introduction of the real-time system, with broad improvement in telecommunications during the period of the ’70s to ’80s, it reformed the banking segment as a convenience banking. With the help of convenient banking, the banking need of a customer is available at door step.

RDBMS (Relational-Database Management) and distributed computing technologies were conceived in 1990. The financial industry was simply waiting for these methods. Presently with distribution procedures, one can design dedicated machines called front-end machines for client administration and risk control, while on front-end machines communicates in bunches without interrupting on the reaction time. When it comes to the academic assignment, online assignment help gives you the best guide.

What is Electronic Banking

Malhotra and Singh (2004) characterized e-banking as the arrangement of banking products and services directly to clients on the network of electronic and communication. Traditional individuals might be associated with such transactions, for example, opening a saving account or transferring money to various accounts, and presenting new banking services, for example, payments and electronic bills.

Regarding complexity of e-banking services, this is in a way from information-push services where the clients get information about the bank, its services and product to download where they want to download account information and full-transaction services where the client can do most banking transactions, (for example, transfer between cards, transfer between cards, third party transfer of money and loan applications, and so forth.)

Information system only

Information which is for general purpose like, for example, bank product, interest rate, bank product, and their highlights, deposits, and loans are given in the site of banks. There are offices for downloading distinctive kinds of utilization shapes. Communication is typically done through email. There is no interaction among the bank’s application system and users. No identity proof is required of the client. In this framework, there is no probability of any unapproved individual going to the bank’s production framework on the Internet

Electronic Information Transfer System

The framework gives specific information about customers such as transaction details, account balances and statement of accounts. Information is still basically in the ‘Read Only’ form. The personality and confirmation of the client are done through the secret phrase. Information is drawn from the bank’s application framework either in bunch mode or disconnected. The application system can’t be accessed directly through the internet.

Fully Electronic Transactional System

This framework permits bi-directional abilities. The exchange can be presented by the client for online updates. This framework requires a state of high-level security and control. In this condition, the application system and web-server are linked with a secure infrastructure. It incorporates networking, computerization, and security, between techniques comprising of legal infrastructure and inter-bank payment gateways.

Services of Internet Banking

Payment of Bills

You can pay the bills of telephone, cell phones, electric, cards, and insurance premium since each bank has tie-ups with different service organizations, insurance companies, and service provider all over the nation. To pay your bills, you simply need to do a registration once for each biller. You can set vertical instructions online to consequently pay your common bills on the web. Regularly, the bank does not charge clients for online bill installment.

Transfer of Money

In the current online banking system, a customer can easily transfer funds from their bank to other’s account.  Online Banking user can also transfer money to some other countries. All a user need to do is to mention the account number of a payee with his branch name. The time for money to transfer from one account to other generally depends on the type of transfer (Instant or Later).

Credit Card Management

Customers who are using credit cards can easily manage their cards, pay the bill, or lodge a service request just on few clicks.


Users can also do investment with the help of online banking, just on few clicks.

Advantages & Disadvantages of Internet Banking

Advantages of Internet Banking

  • Clients can exchange any amount from one account to the next or another bank’s account. Clients could send money to anyplace in the World. When you enter your account, you need to make reference to the payer’s account number, its bank, and branch. The money transfer will occur either at the same time off in a day or two, while in a conventional technique, it takes around three business days.
  • With an online bank, you can take up to 95 percent of your business on the internet. Apart from getting to your bank statement and account information, you can easily transfer money, utility bills, or apply for a card, inspection or another kind of record or for an advance You can apply or download the structure. The biggest online banks have simple platform access, so you simply need to associate with your most loved classes and you will be coordinated to the fitting page in a brief timeframe with the fundamental information.
  • Web-Based banking enables you to save a lot of money. When you utilize your services of internet banking, most banks ordinarily charge a lower expense. You additionally get the chance to know more interesting services and products by traditional banks.
  • Online banks offer top security to guard their user. They utilize the most recent encryption method to stop false activities, for example, identity theft and phishing. However, when it is given, users need to complete their role and also have recent antivirus, antispam, firewall and anti-spyware software installed on their PCs.
  • In the event that you are sufficiently skilled, at that point you can get a decent online bank which offers a higher rate of interest than the loan fees given by standard banks. Direct bank or the individuals who absolutely offer high funds rates on the Internet. The capacity of online banks to offer higher returns and more services is because of the way that they have less overhead cost.

Disadvantages of Internet Banking

Online banking services give various advantages to the user. However, regardless of its favorable circumstances, there are some users who are looking to know its downsides as well. Regardless of the expanding popularity of online banking, it can not be expected that a few users are as still care about making monetary transactions.

  • Numerous individuals are hesitant to utilize Internet banking because of security risks. They still believe that online banking can lead to fraud after watching news that hackers have done online robbery. But the reality is that banking institution that offers internet banking used to keep security on top priority. Because banking institution respects its clients, they generally utilize the most innovative security innovation to ensure their sites.
  • Numerous individuals still don’t trust in online banking. For new clients who have just acknowledged money related transactions for some time, they may even now feel hesitant whether they have made the best decision or not, whether they have tapped on the correct key or not.
  • The user who is using online banking for the first time, directing through the Internet Bank site can feel complexity and may take some time. It might furthermore require time to open an account since certain websites usually request identification like personal identity, photo proof which can change the mind of a customer. Because of this complexity, they might be disheartened to utilize these online banking services.
  • Not every person appreciates the advantage of having a steady and quick web association at home. Notwithstanding having a PC or PC, the utilization of free web at home is an essential condition for electronic banking. Obviously, individuals can generally utilize open PCs with web get to; However, the wellbeing of open PCs is dependably a worry.

Banks are not simply waiting for the clients that they will accept online Banking. Michaelson (2002) reports that a few banks are making marketing activities to set up “kiosks” in bank workplaces to exhibit the abilities and benefits of Internet banking by enabling clients to make Internet banking transactions, as simple as using the computer at their home.

In the present fast-paced world, numerous things are changing in our financial system. Online banking is facing worldwide change and is defying numerous difficulties. These difficulties are globally just as local changes. Innovation is additionally developing quickly. “Access to banking administrations can play a crucial role in defeating poverty while giving a convenient, safe and affordable approach to create and save accounts and receive,” said Livora Clapper, She is working at World Bank’s Development Research Group as a Chief Economist. We will take a look at the consequences of web-based banking and developing nations. The primary focus is to concentrate on web banking. As per Bhattacharjee (2001) “Web banking is a channel that enables customers to perform on a wide scope of financial and non-money related organizations through the bank’s site.”

Most banks offer some restricted administrations, for example, account request and cash exchanges. Clients are unfit to completely encounter the comfort of web-based banking. Numerous banks offer online administrations to their clients yet not all clients are keen on utilizing web banking. Web-based banking can give you another method for working together. You have the comfort of banking from your home. On-line banking is accessible seven days a week and 24 hours every day.

From your PC you can check the balance of the a/c, make a purchase, apply for a loan, and get other a/c data. As of late, web banking is expanding in creating nations. Throughout the years, thinks about have been done to see issues identified with their internet banking. Huge numbers of studies stress over other developing nations.


In the end, it can be concluded that with the growth of wireless communication and internet technologies in the current decade, the nature and structure of financial and banking services have changed a lot.  If we talk about technological wonders, internet banking is the latest and prior to all, which included the utilization of the internet for the delivery of services and products of online banking. We also got to know that, now banking is just not restricted to going to branch for all the baking activities like cash deposit and withdrawal. Therefore, net banking is an ideal rather than an exception in many developed countries, because it is the cheapest way to provide banking services. For more guidance in your academic and scholarly topics, you can take help from assignment help, it helps in guiding you how to write best research reports, essays, articles and other academic topics that you will get.
































































































































































































































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