E-banking services: online banking, mobile banking, and customer convenience

Managing the Relationship Between Customer and E-Banking

Banking

E banking or the Electronic banking is an Electronic method of money transfer or the EFT. This is a means whereby, an individual transfers money directly from different accounts by use of an Electronic system. This service allows clients to make use of computers or electronic gadgets to access the accounts information and conduct the various transactions involved. The service is beneficial for customers working in remote locations or a workplace. Its biggest advantage is that the service is convenient to customers. A customer can access a transaction at any given time of the day whether at night or during the day. Other advantages of E-Banking include; lower operating system in that, the general operating costs for the E-banking system is usually lower for the banks. A customer registered for the Electronic banking system is guaranteed few errors during the transaction. The fact that customers are given ATM cards during the registration of the system makes it to be easier for them to obtain money from the machines at any given time. Credit and debit cards issued to the customers help them to get discounts from retailers and other outlets. Finally, customers using the service can transfer money within a short period.

Online- banking

Online banking is the Internet banking whereby the customer is able to transact his finances on a secured website, which is operated by a given financial institution. The financial institution can be either a bank, building society or a credit union. For a customer to access the system in any given financial institution, registration of the service is mandatory. The customer is then given a password for verification, which will be under various names. This helps the customer to access his online banking facility. For a customer to access his online service, he will be required to visit his financial institution website, use his password and number to enter the institution's online system and be able to carry on with the necessary transaction intended. In most cases, the financial institutions have different ways of accessing the online systems.

The relationship between E-banking and customer

Technology acceptance model or the TAM helps in predicting online acceptance among the customers. This method helps in distinguishing between natural consumer innovativeness and a customer trait. In many cases, relationship between customers and the Online Banking or the E-banking has turned out to be positive. Going by the trends currently, many customers have positively adapted to the E-banking system. Although the E-Banking has been positively received by many customers, the general innovativeness related to E-banking and online banking is negatively perceived. The negativity about the initiative is because

The previous research about E- banking

Research has been done as far as electronic banking is concerned. Similarly, there are also positive aspects that are related to internet banking. However, a limited amount of research has been done concerning underdeveloped countries' e-banking or internet system. The growth in the banking sector is attributed to the technological advancements among different countries across the globe. The previous researches mainly focused on development of e-banking system and internet banking for developed countries such as the United Kingdom, United States, Sweden, France, Germany and China among other others. Researchers have overlooked at the effects of development of technology to the banking system of third world countries otherwise referred to as underdeveloped countries in the world. Therefore, a lot of focus is put on factors that may hinder the penetration of electronic banking in underdeveloped countries and how these factors can be solved.

A study by analyst Forrester Research has uncovered the conflicting views about the safety or possible alternative of online banking. In the United Kingdom, for instance, of all the over 11,000 internet users, majority of the online banking consumers are complacent about security. In fact, a large minority has given up the online banking because they believe it is a violation of subscribers' privacy and allegedly inculcates security fears. Many internet users in the United Kingdom (UK) are very much aware of security threats masqueraded by phishing. Although the bank has a responsibility to deal with the problem, it is vital for customers to take precaution particularly as to some of the issues bedeviling the online banking system. Unfortunately, the attacks are always thrown against unsuspecting consumers on their PCs rather than the system of the bank with which they have accounts. Following the responses on its survey, Forrester has concluded that an estimated 600,000 out of possible 15 million subscribers have in the recent past ditched e-banking due to security reservations. Majority of those who surrendered their subscription on the e-banking platform have a strong belief that such system will only expose them to several disasters that directly affect the customer, dependants or business associates. It is high time financial institutions took a bold move to educate their customers on the significance of being on the lookout for online fraudsters.

In their book, E-banking management: Issues, Solutions and Strategies (2009), Mahmood Shah and Steve Clarke appreciates the kind of evolution the e-banking system has gone through over the past few decades. They acknowledge the main drivers behind its growth, main threats it has experienced and future expectations for the new venture that aims to better financial service delivery. In essence, the online banking system enables clients of financial institutions to perform various financial transactions on safe website, which belongs to the institution. The financial institution could be a virtual bank, credit union or even a building society. Whenever a customer intends to access the services provided by the institution through internet means, it is important for the institution employ suitable mechanisms that would see the service becoming simpler and secure. Otherwise, it would be a waste of funds for clients to bank their money through an e-banking system only to lose it through laundering activities carried out by unscrupulous internet swindlers. The financial institutions have a responsibility to making sure that the funds that clients have banked are safe from any misappropriation or corruption of online managers or technical team.

Critical thinking of the previous research about E-banking

The previous research has attempted to address the significance of employing new technology in banking system. The e-banking system is long overdue and it is a step in the right direction towards the realization of swift, efficient and sufficient banking system. It is high time various states of the world embraced this newfound technology, as it will help take the whole banking industry to a completely new level. Incidentally, most researchers and internet pundits have managed to address the complexities that surround this new venture.

Apparently, the modalities and techniques involved in this system have been addressed through the numerous journals, articles, books among other online materials that attempt to elaborate on the benefits alongside the dangers that accompany it. Concisely, the growth of the technology across various states of the world has prompted different researchers across the globe to share ideas with each other on various international platforms. In essence, e-banking system has made banking more convenient and quicker than it used to be in several decades ago. Further, it has broken down the various technicalities that made banking cumbersome considering the varied location of subscribers. For instance, business people travelling from one country to another have gotten the opportunity to bank at their own convenient time and place.

The researchers on e-banking have accomplished much success in their attempt to address the increasing fear over insecurity of this banking system. Internet crimes such as phishing have been addressed in a more comprehensive manner thus eliminating the fear of the public over suitability and effectiveness of the system. In summary, researchers have come up with recommendations that would see the system becoming safer than ever before. In the end, this will attract more potential subscribers, which in the end will ensure that more people are banked.

How to manage the relationship between E-banking and customer

Like any other business enterprise, E-banking relies on customers to make relevant profits. Institutions offering this banking come up with ways to manage and control their relationship with their customers. This is an arrangement that ensures customers and service providers get the most out of this relationship. In such a relationship, the institutions have much to offer, as it is their duty to maintain their clients. This is a mutual relationship as consumers and service providers both benefit from this relationship.

Customers entrust banking institutions with their money or safekeeping. The first strong point in the management of this relationship is security. Customers must have assurance of the security of their money while the bank must promise to give security. Any customer using E-banking will want to feel safe using the internet to transact money business without fear of another individual accessing it. The bank has to ensure proper quality of the websites the customers use when requesting services. Intruders and hackers should not be able to hack into these accounts. Customers of this form of banking are offline most of the time, as customers do not require transactions every day. This leaves these service offering institutions with the responsibility of controlling these systems. Since customers who came to contact with this system of banking still use it, it shows they have a healthy relationship.

Another key indicator of a strong relationship between these two is customer loyalty. Electronic banking providers ensure Satisfaction of customer needs brings about customer loyalty. In electronic banking, convenience is the most satisfying factor of customer and service providers' relationship. After much research, many customers agree they prefer mobile banking because of the time they save to carry out their transactions and non-transaction needs. To keep the relationship at manageable levels, the providers must ensure they avail electronic banking at all times. This allows customers to access services anywhere in case they are in need of them. Service providers on their part ensure that services are available any time of day. They ensure their systems are operational at any time of day. With cheap access to transactions and other banking services, it is easier for a customer to remain loyal to the electronic banking providers and maintain trust in their providers.

Cost is another tool providers use to manage this relationship. These customers' access information using their internet those providers do not provide. This means they incur most of the transaction expenses in this transaction. To better the relationship, banks reduce the amount of money they charge to complete such a transaction. This is manageable as customers, and the business both incur minimal expenses. Electronic banking providers also benefit from such a relationship as providers decrease money paid to finance the transaction. Wages for workers are absent, as providers will only service rendering machines. Such is a convenient relationship as both users benefit from the arrangement.

Electronic banking providers have the duty to educate their customers how best to apply and use these services. The providers have the biggest responsibility to attract consumers and maintain them. This means that they also have to create customer awareness in the market. Advertising and reducing any complications is the duty of these institutions. To do this, the managers of these providers ensure their customers can make complete transaction. These electronic banks act as links between consumers and providers of some goods. Customers can order for goods and pay for them through electronic banking. These electronic banks facilitate the transfer of payments between individuals.

In conclusion, the relationship between E-banking and customers is manageable if the services offered are quality. In this banking service, this is a simple way for customers to carry out their transactions. Currently, this relationship is positive and this show the banks are doing their part. Although at some point the systems may fail, and hackers might access internet services customers are still comfortable with the services. Cost of doing these transactions is minimal for both clients and providers. This relationship is in most times mutual. Customers and E-banking need to strengthen this relationship further as only then will there be good results.