Dynamics of Online Banking: Prospects and Problems

Abstract

Banking plays an important role in countries economic development. The role of commercial banks has been drastically changed after Liberalization, Privatization and globalization. Public sector banks have to compete with private corporate banks. Advanced Technology is one of the major contributing factors for the rapid advancement of banking sector (ATMs, online banking debt and credit cards etc). Online banking is a new phase in retail banking services. With the help of online banking several types of services through which customers can request information and carry out their banking transaction such as balance inquiry, inter account transfers, utility bills payment, request check book etc., via a telecommunication network or internet without physically visit the branches. Customers are being facilitated by reducing their visits in banks and they can carry out their transactions via internet or ATM Machines instead of personally visiting the branches. The Promotion of online banking technology enabled the banks to enhance its operations with cost cutting effectively and efficiently in order to handle daily banking affairs via online banking channel. This Paper examines trends and dynamics of online banking.