E-Banking: A Fuller Picture

E-Banking: A Fuller Picture

Mahmood Shah (Cranfield University School of Management, UK) and Steve Clarke (University of Hull Business School, UK)
Copyright: © 2009 |Pages: 35
DOI: 10.4018/978-1-60566-252-7.ch012


This last chapter is a summary of previous chapters. Whereas previous chapters focused on specific issues in e-banking, this chapter presents a summarised full picture along with recommendations about good practice in the domain. We defined e-banking as provision of information about a bank and its services via a home page on the World Wide Web (WWW). More sophisticated e-banking services provide customers access to accounts, the ability to move their money between different accounts, and making payments or applying for financial products via e-Channels.
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Reasons For Implementing E-Banking

E-banking is a significant investment, so the question must be answered as to what motivates banks to participate and deal with the associated problems and risk. This section summarises some of the reasons often cited by banks to be their primary motive for implementing e-banking.

Customers Demands

With the emergence of the digital economy the balance of power seems to be shifting to customers. Customers are increasingly demanding more value, 24 hours availability, with goods customised to their exact needs, at less cost, and as quickly as possible. To meet these demands, banks need to develop innovative ways of creating value, and e-banking is seen as one of those innovative ways to meet customers’ expectations.

Selling More to Existing Customers

The financial services markets in most developed countries have matured considerably and there is very limited scope for creation of new markets. This means that the most common route to growth is to sell more products to existing customers. Early indications are encouraging as both the volume and value of new business generated from the Internet channel are growing for the banks which have implemented e-banking. In some cases, such as Woolwich in the UK (See Chapter VIII for details) each e-banking customer holds four financial products on average, which is a considerably higher figure than for traditional banking customers.

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