Internet Banking Master Assignment Example | Topics and Well Written Essays - 2000 words

Internet Banking Master - Assignment Example The present form of online banking finds its roots in the pioneering initiative launched by four of the major banks of New York, Citibank, Chemical Bank, Chase Manhattan and Manufacturers Hanover bank. These banks simultaneously, yet individually, offered home banking services that allowed bank customer to maintain records as well as carry out transactions without leaving the comforts of their home (Mary J.C., 1997) Internet Banking received a major boost with the rapid development and penetration of banking activities conducted over the internet. Activities like money transfer and securities trading can be done through internet banking. It's a virtual bank in itself which is often an extension of its brick and mortar model. With expanding information technology it is wise for the banks to adopt and leverage it, for expansion of business and better and faster delivery of services to the customer. Some of the benefits of internet banking are: Internet banking is being used both in B2B (business to business) and retail banking. There are also some banks which only have a virtual presence, for example Nexity Bank. Generally bigger banks tend to offer internet banking. This is because smaller banks often find the cost of the service unprofitable before they expand to a certain scale (Gup B.E., 2003) Lloyds TSB is the largest retail bank in UK serving over 30 million customers. Being one of the largest banks in UK and the world, it has taken to internet technology in a big way and offers an array of services to its customers over the internet. Some of the internet banking services offered by TSB are like payment of bills, management of direct debit and standing orders, online application for savings account- over draft - credit card -personal loans, online travel money (without commission),online statements and so on. They also provide online banking guarantee and free weekly text alerts and the best is that registration for such services comes free of cost. (Lloyds TSB Bank Plc., n.d.) Internet banking has different stages. The very fundamental or basic stage is about 'information'; it offers information about the bank and its offerings. The next level is 'communication' which offers interaction between the customer and the bank's information or IT system. 'Transaction' is at the core of the next stage, where customers virtually transfer money/funds, pay bills and so on. (Ravi V., 2007) Internet bankin