E-Banking Service of SBI Bank www.studygalaxy.com
IntroductionDefinition:-•The provision of banking service through electronic channels andthe customer. It can access the data without time and geographicallimitation.•Combination of the two term Electronic technology & Banking.•Process by which a customer performs banking transactionselectronically.
What is E-banking?•E-Banking denotes the provision of banking andrelated services through extensive use of informationtechnology.•Delivery of bank’s services to a customer at his officeor home by using electronic technology.
• Development of E-banking• Advantages of the E-Banking• Disadvantages of the E-banking
Development of E-banking1980s :• Rapid development of the Internet• TCP/IP system (communication system)• E-commerce
Development of E-bankingMay 1995 :•Wells Fargo - the first bank in the world to offer customeraccess to their accounts over the internet .•Allows customer to see their accounts online
Development of E-banking• ICICI was the first bank to initiate the Internet banking revolution in India as early as 1997 under the brand name Infinity.• ICICI Bank kicked off online banking way back in 1996 . But even for the Internet as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999-due to lower ISP online charges, increased PC penetration and a tech- friendly atmosphere.
Different services provided under e-banking• ONLINE BILL PAYMENT• SHOPPING• TICKET BOOKING• PRE PAID MOBILE RECHARGE• MARKET WATCH
Contd…• PERSONAL HOME PAGE• INVESTMENT SERVICES• ONLINE APPLICATIONS• PERSONAL UPDADATE
SERVICE PROVIDED BY SBI• Self-account funds transfer across India.• Third party transfers in the same branch.• New account opening.• Demand Draft requests.
Contd…• Standing instructions.• New Cheque-book request and much more.• Railway tickets booking.• Utility bill payments.
Contd…• LIC and other insurance premia payments.• SBI Mutual funds Investments.• Remit Subscription to PPF account.• Credit card dues payments.
Contd…• Deposit your taxes.• Donations to your religious inspirations.• Donations to Red Cross and such other organisations.• Setting up SMS alerts for transaction information.
CHANNELS IN E-BANKING• AUTOMATED TELLER MACHINE (ATM)• TELE-BANKING OR PHONE BANKING
Advantages of E-banking• Benefits for Banks• Benefits for Small to Medium Businesses• Benefits for Customers
Disadvantages OF E-banking• A need for customer skill to deal with computers and browsers. E.g. Elderly, Housewives → Inconvenient• Site change it will make the customer have some confusion or delay.• Security Risk
Benefits for Banks• Larger customer coverage• Reducing the costs of operations• Promoting their services and products internationally• Increasing the customer satisfaction and providing a personalized relationship with customers
Conclusion• E-Banking Enable Better Business Anywhere, Anytime.• E-Banking represent a tremendous opportunity in India.• However, Factors such as illiteracy in India, availability of cheaper labor force, reluctance to change by the existing staff of banks and slow growth of technology in India are responsible for slow growth of e-banking in India.
Contd…• Development and acceptance of standards by financial institutions will clearly have a positive impact on the level of security achieved by banks and bank customers.• Since opportunities foregone are opportunities lost, the banks have to rise ahead of time so as not to lag behind in the e-banking era.