Electronic Banking as a Strategy for Customer Service Improvement in the Developing Economy

Electronic Banking as a Strategy for Customer Service Improvement in the Developing Economy

Asma Mobarek (Stockholm Business School, Sweden)
DOI: 10.4018/978-1-61520-635-3.ch003
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The objective of the chapter is to present a brief review of E-banking services especially in the developing economies, highlighting the major challenges of E-banking with a guideline or recommendations to address those challenges. Technology has introduced new ways of delivering banking to the customer. Developed countries (DC) customers of the E-Banking services are fully aware of the services but the customer’s in the developing economies still lag behind. It is clearly seen that delivery channels are lacking in meeting the demands of the customer by not making them aware of e-banking and using obsolete or not too up-to-date technology. I would thus conclude that banks in the developing countries should drown themselves in all the intricacies regarding e-banking to determine ways that will affect the customers in and use it to their maximum benefit. The other issue is that there are very few or no banking facilities in the rural areas and furthermore, access to the internet is close to impossible in these areas therefore awareness and utilization of these services is very little or none at all. At last but not the least is that Banks must adapt to the electronics age. Consumers demand it. Economics drives it. Banks must exploit it.
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Evolution Of E-Banking

Technological developments have brought new opportunities for banks. The evolution of the e-banking industry can be traced to the early 1970s. Banks began to look at e-banking as a means to replace some of their traditional bank functions, for two reasons. Firstly, branches were very expensive to set up and maintain due to the large overheads associated with them. Secondly e-banking product/services like ATM and electronic fund transfer were a source of differentiation for banks that utilized them. Being in a fiercely competitive industry, the ability of banks to differentiate themselves on the basis of price is limited.

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