Electronic Business – Banking
Several other classmates have reported on Electronic Business, so at the Professor’s request for more specific topics, I have focused on banking, in the electronic business world. I would think the term would be called “e-banking” or “ebanking”, but I could not locate that term anywhere in the text book or in definitions online. (Did I coin a term?;)
Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society. {1} Online banking has become a common tool for both business and personal use. It is difficult to believe that only a few short years ago, one would have to go to an actual bank to make certain transactions. Now, there are very few transactions that would require one to physically go to a bank. There are even certain types of accounts that are exclusively for online use (I stumbled upon the following on the Bank of America website, and is where I did find the word “ebanking”.) eBanking is for customers who like to use self-service options. With eBanking, you can avoid the monthly fee by using self-service options (such as ATMs and Online Banking) for all of your deposits and withdrawals, and by choosing to receive account statements electronically through Online Banking instead of getting a paper statement. {2} This type of account can have a detriment, as it continued explaining that there is an $8.95 monthly service fee, if there is any assistance (deposit, withdrawal, etc) from a bank teller.
In the last several years, the number of households that use online banking has increased dramatically, and apparently will continue to soar. Overall, the number of households paying bills online is slated to jump 5.4 percent from 48 million this year to 63 million by 2014, according to another report from research firm Forrester. {3} Most consumers (and businesses) use online banking for checking their balances, transfer funds among different accounts (or different banks), and paying bills. The use of online banking is a huge benefit to banks because “customers tend to stay with the bank longer, have higher cash balances, and use more of the bank’s products and services.” {4)
Another area of electronic business of banking has emerged called mobile banking. Mobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). {5} This has become a modern convenience for me personally, as I use it for both work and personal use. To think that no too long ago, to pay bills, I would have to write a check, then mail it, and wait for it to clear. Now most bills can either be paid instantly, or in one business day. This obviously helps getting bills paid on time as well, since there was always a concern that by the time the post office delivered it, and it would be posted to the account, it would be before the due date. Now, I usually know exactly when it will clear and post to the account that I am paying, as well as when the funds will be deducted from my bank account.
In conclusion, one can see that online banking is expanding, and will likely continue to expand in the fast paced high tech world we live in today. I do not see going back to a time, when we would need to write checks for most bills, or regularly wait in line inside a branch, or at a drive-thru to personally deal with a teller at a bank. With so many modern conveniences in life, I ask why do most I deal with, both personally and professionally, claim to have less free time than ever before?
In conclusion, one can see that online banking is expanding, and will likely continue to expand in the fast paced high tech world we live in today. I do not see going back to a time, when we would need to write checks for most bills, or regularly wait in line inside a branch, or at a drive-thru to personally deal with a teller at a bank. With so many modern conveniences in life, I ask why do most I deal with, both personally and professionally, claim to have less free time than ever before?
{1} “Online Banking”: http://en.wikipedia.org/wiki/Online_banking
{4} Fundamentals of Information Systems, by Ralph Stair. Edition 6E, page 226.
{5} “Mobile Banking”: http://en.wikipedia.org/wiki/Mobile_banking
My understanding of banking is very narrow, but all my banking is done through computers or online. Not only that curtain programs and software’s which are part of the bank itself help me manage my accounts and keep all together, they also serves as for of security that is easily and randomly accusable via internet of cell phones. You explained very nicely importance of internet banking through ATM but for all these services even though it is so convenient for us there are curtain extra charges (which I don’t like particularly) But those charges are there to secure our internet transaction, without theses charges stilling of our identity will be at much higher rate. Then again my parents simply refuses to use any type of internet as any form of business, but since our generations are increasing their number so the internet business and internet security will be increasingly present in any type of E-business.
ReplyDeleteQuotations are used as described by professor, and number of words is satisfied. Overall good report.
Great job. I do all my banking via computer. Only go to the bank to deposit checks. You presented the banking piece clearly and directly. I think their 5.4 jump in bill paying is low. I know that the older person is not using it to pay bills but I know that there are people who are paying their parents bills because it makes things so easy. So that # I think will grow quicker than they predict. Good job following the Prof directions and advise.
ReplyDeleteIsn't it amazing how e-banking has become such a popular option among the younger generations? Although e-banking or online banking has many positive aspects for consumers and the banking inudstry, it also has its downside. One way in which e-banking is hurting other businesses is the decline in mail volume. "Snail mail is a dying enterprise because Americans increasingly pay bills online, send Evites for parties and text or give a quick call on a cellphone rather than write a letter."[1] Another negative side of e-banking is the loss of jobs for branch employees. Bank of America used to be on the expansion route with its banking center farnchise but has recently been closing branches because they "are continually improving online banking, mobile banking, and ATM capabilities as more customers are using these channels."[2] While I think the convenience of online banking or e-banking is a plus and the reduced overhead costs due to closing branches is good for the banking business, there are many people losing jobs because of this advancing technology.
ReplyDelete[1] http://www.washingtonpost.com/wp-dyn/content/article/2009/07/24/AR2009072403857.html
[2] http://www.wbtv.com/story/10805964/bank-of-america-closing-branches?redirected=true