E-Business Essay Example | Topics and Well Written Essays - 1500 words

E-Business - Essay Example However, as much as online banking is present in many banks few have services worth consideration as e-banking. Banks engage in e-banking due to a number of benefits that they accrue together with their consumers and other stakeholders. This paper will look into e-banking in UK and how it is helping banks. E-banking and customers E-banking still has strides to make in order for banks, customers and stakeholders to fully benefit. In the developed world where technological literacy is high many banks have not embraced fully-fledged e-banking services. Many customers also have stuck with the traditional banking systems. This has led to a few net transactions being carried out under the e-banking systems (Helen and Fotini 2004). It is important to note that when a customer is satisfied, the service provider is satisfied in return. Customers who have chosen e-banking methods have done so to avoid standard practices that plague traditional banking (Ian 2009). Other customers do so to ensur e security and privacy of transactions since banks with e-banking options offer security guarantees. Customers are able to do a great deal online for example balance and e-statement inquiries, money transfers, changing personal details e.g. PIN, control overdraft transactions, manage standing orders and payments of bills among others. There are help lines established by banks most of which operate on 24 hours basis. E-banking and banks Mainstream banks in the UK like HSBC, Barclays, Royal Bank of Scotland (RBS) and Lloyds are now having a wide range of e-banking services which are clearly illustrated in their websites. They are leveraging on the potential that internet technology has in order to establish online banking facilities. These banks have gained millions of customers from all over the world due to the flexible and convenient nature of e-banking (Ali, Datamonitor (Firm) and Reuters Business Insight 2000). Some of concrete advantages are as follows; 24 hours operations This is basically the biggest advantage where banks operate even after locking up their branches in the evening. E-banking enables customers to access their bank account details on a 24 hours basis as mentioned before. More customers Banks that utilise their marketing strategies to capture more customers are sure to gain more by having e-banking services. E-banking reaches many potential customers who are able to view what a bank has on offer and apply immediately in the bank’s website (Teo and Tan 2000). Traditional banks which have physical locations tend to use more effort to physically reach the prospective customer and convince them to open an account. Innovation in product and service range E-banking enables banks to develop products and services that can only serve internet users. Some of these are the e-bank statements, DVDs, news feeds on finances and financial calculators among others (Buckle, Buckle and Thompson 2004). This has however been challenging for banks in term s of investment cost. The more the services, the more is the initial cost but due to the relative lower cost of operations in the online business in the long term, the initial costs are overshadowed. Broad customer base It is an emerging advantage with banks attracting customers who are beyond their geographical regions. Internet is everywhere