A Study of Internet Banking & Its Uses in Indian Economy

Abstract

The financial services industry plays a key role in the economic development of our country. One of the major developments in the financial services sector over the last five years has been the launch of internet banking services. Internet banking is still at infancy stage in India. It provides the wave for the future. The advent of Internet has initiated an electronic revolution in the global banking sector. Increased competition, changing business environment and advancement in technology are the main factors that have forced the banking and financial institutions to change their pattern of work according to the changed scenario. That is the reason why internet-banking, online banking and web banking are came into existence.It saves the precious time and energy of customers as they don’t have to wait in long lines in front of any institution to get their work done. It is easy as well as convenient Due to internet-banking, the banks are enjoying numerous advantages like wider and deeper reach to the customers, quicker time to market, ability to introduce new products and services quickly, greater customer loyalty etc.  Demand for financial services is changing rapidly and consumer behavior towards these things is also changing rapidly. Across the globe, countries have recognized Information and Communication Technology (ICT) as an effective tool in catalyzing the economic activity in efficient governance, and in developing human resources. Online banking provides a lot of benefits that adds to customer values with better quality offers and at the same time enable the banks to gain competitive advantage over their competitors. The changes in technology make the customers to cope with the changing environment. This study suggests that despite a high level of awareness of internet banking services, only a relatively modest proportion of customers use internet banking services.