In the present context banking takes place progressivelyonline, where traditional branch banking network has dropped whistle most ofthe financial institutions tend to deliver their services via variouselectronic networks. A standard shift in banking operations is gotten from theincredible developments in technology and the hostile infusion of informationtechnology (Gerrard & Cunningham, 2004).In the competitive landscape of the financial service industry technology hasbecome more and more dynamic. Completely new service concept and serviceenvironment has been created in current developments. Technology hastransformed the very nature of selling and buying financial services. Customermovement from traditional branch banking to more stand-alone banking is one ofthe most fundamental fluctuations in the banking industry. In other words,Internet, telephone and mobile phones in private banking (Lu et al.
, 2003) are the electronic delivery channels usingtowards this transfer. Internet banking is a new category of information systemthat uses the advanced resources of the internet to empower customers toinfluence financial activities in virtual space (Shih& Fang, 2004). Customers can use various kinds of banking servicesranging from bill payment to making investments through this internet bankingwhich is also defined as internet portal.
The deregulation of the bankingindustry joined with the occurrence of new technologies, are permitting newcompetitors to enter the financial services market speedily and competently. The rise of the Internet has had an importantinfluence on the diffusion of electronic banking. Bankingis no longer assured to time or geography with the help of internet. Consumersall over the world have comparatively easy access to their accounts 24 hoursper day, seven days a week. So that, both banks and customers get benefits outof internet banking (Karjaluoto, Mattila &Pento, 2002). Banks using online services is the probable savings in thecost of maintaining a traditional branch network is one of the major advantages (Shih & Fang, 2004). In addition Turban et al.
(2000) specified some of thebenefits of internet banking which enormously beneficial to customer such as,saving in costs, its quick response to complaints, time and space it offers,its delivery of improved services, all of which benefits make to have a betterbanking. Importanceof Internet Banking Today many of us guidebusy lives. The internet banking service is introduced in1994 and this servicenot only for banking service, this will also attract in the financial servicesand other business organizations (Frust, Lang& Noelle, 2002). So internet banking is becoming much more familiarto us. Before introducing the internet banking, banks offered number ofelectronic services to customers such as ATM, Mobile or SMS banking andtelebanking. As technology has been enhanced andpeople are more devoted toward performing their routine life activities with thehelp of the Internet, the banking sector has also enhanced the availability ofits services by expansion its extent of competition toward an e-environmentalong with the services of Internet banking (Raza,Jawaid & Hassan, 2015). And also Banks obtain the benefit like lowertransactional costs, efficiency, holding profitable consumer base and expandingthe market area.
Consumers also get different benefits of Internet banking likeconvenience, ease of use, ease of understanding and time and cost savings. Therefore, Internetbanking provides many benefits to both banks and their customers (Karjaluoto, 2002).Customer Point of View Before introducing theinternet banking customers had to wait long hours in bank queues for withdrawor deposit money and other banking transactions. It consumes time and money when compared tointernet banking. Consumers all over the world have relatively easy access totheir accounts 24 hours per day, seven days a week (Karjaluoto, 2002). According to a study theneed of Internet banking has been analysed to provide satisfactory services tothe customers who make them a delight (Rod etal., 2009).
Turban et al. (2000) indicatedthat Internet banking is extremely beneficial to customers because of thesavings in costs, time and space it offers, its quick response to complaints,and its delivery of improved services, all of which benefits make for easierbanking. And a similar study conducted in Indiadetermines that customers influence of the internet banking because of attitude,perceived risk, perceived enjoyment and trust determine the customers’behavioural intentions to use internet banking (Bashi& Madhavaiah, 2015). Generally, with internetbanking customers can maintain a variety of benefits at a low cost and enjoytheir privacy without any confusion.
Bank Point of View Today,the Internet is examined as a part of a strategic plan by the banks and thetechnological development in the Internet is helpful to change the way banksoperate, transport and compete (Sadeghi , 2010). From the bank point of view, oneadvantage of banks going online is the potential savings in the cost ofmaintaining a traditional branch network (ShihYa – Yueh & Fang, 2004). Also, theyintroduce eco- friendly environment by reducing paperwork. And it will reducethe number of branch network and try to minimize the employees of the bank. Sincethe technology has been improved and people are more addicted toward performingtheir regular lifestyle activity with the help of the Internet, the bankingsector has also improved theavailability of its services by involving its level of competition toward ane-environment along with the services of Internet banking (Raza, Jawaid & Hassan, 2015).