Internet Banking has become immensely popular across the country due to its plethora of benefits and facilities. With easy accessibility to the internet over PC, PDA, Cell phones, etc.; the reach of internet banking has extended to even remote villages of India. Nowadays, many bank customers are increasingly availing net banking facilities. Internet Banking is all set to bring revolution in Indian banking industry and it has changed the way peopledo financial transactionsin India. Life has become much easier and stress free with net banking at hand.
Internet banking or e- banking is changing the face of Indian Banking and it has made available the accessibility to the banking products & services from the comfort of customer’s home. As per the reports on Internet research, Web is going to be extremely important for retail financial services as compared to other industries.Internet banking is rapidly changing the banking industry and it has led to major effects on banking relationships.
Any transaction is processed online at any time irrespective of any branch in Internet banking. It has soon become “need to have” service from “nice to have” service. Thus, it has become compulsory feature rather than an exception now. Moreover, it is a cheapest way of offering banking services to the customers. A successful Internet banking facility provides wide array of services such as 24 hour account access, Credit cards with low rates, easy online applications for all accounts, free bill payment, impressive rates on Savings,rebates on ATM surcharges, quality customer service, etc.
One of the biggest changes that took place in Indian Banking is that now net banking has levelled the playing field and it has led to the open access to customers in the global marketplace. It is a cost-effective delivery channel and consumers are gradually moving to Internet banking. The ability of anytime anywhere transaction has brought great relief for the customer. The major drivers of Internet banking comprises of various factors such as enhancement of customer service, Improve customer access, attract new customers, provide competitive services, facilitates more services,increase customer loyalty and reducing customer attrition.
Challenges of Indian Banking
Some of the emerging challenges of the Indian banking industry includes emergence of open standards for banking functionality, global players in the market, growing customer awareness, integration of bank services with web based E-commerce, unbundled product purchases, etc. Non-traditional banking institutions offer stiff competition to banks in Indian Banking scenario as they now provideonline banking and financial services. New players are rapidly emerging into the markets due to the emergence of new technologies and deregulation of the banking industry. More and more banks are preparing for a giant leap in retail banking.
Major concerns in internet banking revolve around the security.Multi-layered security architecture is implemented that comprises of firewalls, encryption, digital certification, filtering routers, that ensures efficient protection of your account information from unauthorised access. The presence of firewalls and filtering routers allow only genuine Internet users can access the system. The privacy of data flowing over the internet is ensured by various encryption techniques used by the bank.