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.

Mobile- banking

Mobile banking is whereby a customer can carry on his banking transactions by the use of a mobile device. This is a convenient method of money transfer and transactions especially with the technological world. The method is also referred as the SMS banking or the M-banking. Carrying out the service depends with the financial institution upon which a client is registered. Different financial institutions offer different options for their clients on their mobile devices as a means of alerting them on the processes to follow during the transaction. Text alerts on the mobile phones help the customers know the different activities already carried out in a given account. The process involves, logging into an account by the use of the mobile phone, then make the necessary transactions, which may range from, checking the balances, payments, money transfers between the different accounts, viewing of the monthly statements. The customer can also notify his banking institution about lost credit card or ceasing to pay for some services. Mobile banking is convenient to many customers in that it saves an individual the hustle of going to the bank physically. The service can be conducted while in a remote place and saves a lot of time and energy.

Other advantages of the service are; the whole process is user friendly hence easy to operate the system. The customer only needs to follow instructions to conduct a transaction. The whole process is cost effective. The standard costs set by most banks are cheaper compared to the real banking. Mobile banking reduces fraud in that; the financial institution alerts its customer on any transaction-taking place on the customer's account. In case, a withdrawal is done, the customer will be notified immediately. Mobile banking helps in reducing the costs of tele banking. This is advantageous to the bank and the financial institution. The fact that the customer can transfer funds immediately to a different account within the same financial institution by use of the mobile banking system makes it an advantageous and convenient system of money transfer.

Although the Mobile banking is considered an ideal system of banking, the system faces major concerns which maybe disadvantageous to some people. In some situations, experts warn customers against large transactions by the use of the mobile banking system. The challenges range from compatibility, costs, and the security of the system. Compatibility in that, Mobile-banking system is not available on all mobile devices. In some situations, the financial institutions do not provide Mobile banking. Security concerns about the mobile banking system have been raised in many occasions...

The cost of enacting the Mobile banking system is high. This restricts most financial institutions against the system.
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…