E Commerce In Banking Sector

771 Words4 Pages
Impact of E-commerce on Banking Sector Expanding market, reducing costs, improving consumer service, etc are some of the methods adopted by business men in order to establish their brand in the market. One of the most common techniques of conducting business adopted is by embracing e-commerce. 'Electronic commerce is sharing of business information, maintaining business relationships and conducting transactions by means of telecommunications networks'(Vladimir Zwass). Electronic commerce commonly called e-commerce is a method adopted where business is conducted using internet with the help of a network of computers linked to each other. It consists of buying or selling of goods and services over electronic systems. Use of computers to manage…show more content…
E-banking as a process allows the use of internet to perform financial function in a protected and secure manner. The discovery and introduction of e-commerce to perform various business has largely impacted banking due to the changes in the technology, rapid deregulation various finance, emergence of various banking institutions and the growth of the economy. The pressure for a change was felt by the banking industries as they could be degraded to a secondary role due to the shifts of commerce toward…show more content…
The only necessarily now to fulfill any transaction is a basic computer and internet. 5. Online banking also provides advantages such as shopping online, booking tickets, payment of water and electricity bill, school and college fees, etc. 6. The discovery of E-commerce has expanded business reach. A business online provides an opportunity to conduct business anywhere and hence taking the business to a global platform. 7. E-commerce has helped the Business men in expanding their business as now they get an opportunity to sell both at storefront as well at online creating a higher profit margin. The remarkable growth of e-commerce industry in India has created high competition between industries forcing them to come out of their comfort zone and think outside the box. A strong business model and first class service is crucial for success. There is high competition in banking industries as well. With new commercial banks surfacing there is a need for all the banks to stay upgraded with technology and to incorporate new schemes. There are three methods of e-banking. • ATM (Automated Teller Machine) - allows a customer to complete basic transactions. • Internet banking – facilitates online
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