Online Banking Essay example -- essays research papers

Online Banking: How Technology has Affected the Bank Industry Aluscine Kabia Diana Mickle Jennifer Ross Betty Tekeste University of Phoenix COM525: Managerial Communication and Ethics Edward L. Dempsey March 14, 2005 Modern technology has set the stage for today’s industries to adopt faster, more effective and efficient tools to improve their business and productivity. A vast majority of organizations within various industries are using new technology to introduce changes to their business operations. Simply stated, these changes are manifested in what they do, with whom they do it, how they do it, and the tools they use to get it done. However, it is worthwhile to note that, while technology can offer beneficial changes to organizations, change usually comes with both positive and negative consequences. In any business, if technology serves as a catalyst for improvement without significant drawbacks, adopting the changes that it brings will be more beneficial than harmful. Online banking is a technological advancement that has brought about such a change. The banking industry has adopted virtual banking to improve business process, infrastructure, and customer relationships. These changes have had a major impact on the banking business, but more transparently on the customers of online banking. The matrix measures for the improvements added by online banking can be evaluated on comparable levels of service, efficiency and cost satisfaction, for both the provider and consumer of this technology. Throughout this document, we will discuss the advantages and disadvantages of online banking in hopes of formulating a better understanding of why banks of today are moving towards online business. While virtual banking has considerable concerns, the advantages it generates, far outweighs the disadvantages because the value added through this technology benefits both the banks, and the customers. E-banking has had a considerable impact on today’s banking business, affecting both customers and banks in multiple ways. Banking activities such as; account inquiries, depositing or transferring funds and ordering checks, can now be done remotely, 24 hours a day and seven days a week. From a business organizational point of view, this technology is changing the employee structure of the average bank. The U.S Department of labor noted in 20... ...vestorguide.com/igubankonline.html Online Banking Pages. (2005). Retrieved March 7, 2005 from the World Wide Web:   Ã‚  Ã‚  Ã‚  Ã‚  http://edt.uow.edu/au/elec195/group-projects-2k/group1/Limits.html Raghunathan, A. (2003). Security worries keep many from banking online. Retrieved   Ã‚  Ã‚  Ã‚  Ã‚  March 7, 2005 from the World Wide Web:   Ã‚  Ã‚  Ã‚  Ã‚  http://www.siliconvalley.com/mld/siliconvalley/7388475.htm The virtual threat. (2000, May 18). The Economist. Retrieved February 11, 2005 from the   Ã‚  Ã‚  Ã‚  Ã‚  World Wide Web: http://80-www.economist.com.ezproxy.appollolibrary.com What is online banking? (2003, March 28). BankRate. Retrieved March 8, 2005 from the   Ã‚  Ã‚  Ã‚  Ã‚  World Wide Web: http:// http://www.bankrate.com Wolfe, D. (2004, October 13). Why some are placing bets on in-branch online banking. American Banker. Retrieved March 9, 2005 from the World Wide Web: http://www.apollolibrary.com Yip, P. (2000, October 9). Net banking not for all lifestyles, comfort levels key to online accounts. Sun Sentinel. Retrieved March 9, 2005 from the World Wide Web: http://proquest.umi.com