Impact of e-commerce in Banking sector Essay Example | Topics and Well Written Essays - 3250 words

conflict of e-commerce in Banking welkin - Essay ExampleThe concept of electronic commerce is descriptive of the process of conducting commercialized transactions of services, goods, and information by means of computer networks. In e-commerce products and services can be bought online. collect to the fact that the banking sector is probably the busiest service sector, running it efficiently ordinarily requires more manpower. Technological innovations much(prenominal)(prenominal) as computer based commercial transactions, however, do not usually need direct direction from workers, and thus have contributed towards banks being more efficient in their dispensation of services. In traditional banks manual services, consumers usually have to queues to get to the necessary services. The introduction of e-commerce brought a much needed change to combat such inconveniences (Mahdi and Mehrdad, 2010). Banks have to make use of the offerings of e commerce so as to remain relevant spot outwitting their competitors. In the banking industry, productivity is dependent on the speech communication of high quality services. E-commerce in the banking sector has to do with allowing customers to be able to access their bank accounts through the internet by means of a modem. Online banking options were root provided, in a limited capacity, by baking institutions in America in 1995. It has been speculated that this was as a result of the pressure faced by American banks as a result of aggressive contender between international banking institutions across the globe (Mittal and Sanjay, 2007). At first, the online services only had to do with providing customers with information nearly the various services that were being offered by different bank branches. The rapid development of communication technology witnessed in the last two decades, however, allowed for banks to start allowing their customers ways of accessing their accounts through the internet. Banks also made i t possible for customers to broadcast money while also being able to procure financial offerings on their behalf. Since then, there has been a rapid spread of the use of online banking options across the world. While, in traditional banking, workers handle all financial activities such as the provision of loans and the collection of deposits, in e-commerce in banking, a number of distribution channels ar used to supply information about banking transactions. In the use of e- commerce, banks use delivery formations such as digital television, cell phones, and laptops to relay information to their consumers. In transactions conducted through the traditional system of banking, earnings transactions are conducted through a bank branch. The utilisation of e-commerce in the banking system today, however, has allowed for the automated delivery of services to banking customers by use of the internet (Khalfan and Abdullah, 2006). In most banking facilities in developed nations, the elect ronic banking system involves the automation of factors such as ATMs, direct deposit, telephone banking, debit and credit cards, web-based banking, and bill payment. Most banking institutions some the world have some sort of e-commerce function. While some scholars have observed that e-commerce in the banking sector might soon be responsible for the abolition of traditional functions of banking, this is not likely unless banks begin to contact substantial profits through e-banking services (Kjell, VebjOrn and TjOstheim, 2006).