Telebanking and Electronic Banking

Around in 21 century computer and telecommunication and information systems were developed. This was lead to radical change in the way of human being’s live, work and think.  Rapid growth in computer and telecommunication systems helped to reduction in cost as well as transfer voice, data, images and videos around the world within micro seconds.  Developments in telecommunication were penetrated into banking sector to change physical branch network into digitalized and networked banking services units. Now it causes to change fundamental delivery systems to fulfill enormous requirements coming from the customers. It is expected to change further in banking sector with the development of technology.

The changes in new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. Advances in technology are help to deliver product and services conveniently and effectively than ever before, thus competition between banks cannot be avoided due to competitive advantage.

Young generation is not afraid of computers and technology and now they comfortable with personal computers and other electronic devices. They expect fast, efficient, and accurate service. The only way to provide instant, quality service to the customerscost effectively through intensive use of the most advanced information technologies and through good people trained in the use of these technologies.

Benefits of Systems

For the Customers

The banks have incorporated advanced technology to satisfy customer by providing Self-inquiry,Remote banking, ATM, Telebanking and Electronic Banking facilities. Furthermore as information is centralized and updates are available simultaneously at all places, single-window service becomes possible, leading to effective reduction in waiting time.

For the Bank

With the systems banks are able to easilyassist the bank in business development and follow-up due to availability of a wide range of inquiry facilities, Immediate replies to customer queries without reference to ledger-keeper, Automatic and prompt carrying out of standing instructions on due date and generation of reports, generation of various MIS reports and periodical returns on due dates and fast and up-to-date information transfer enabling speedier decisions, by interconnecting computerized branches and controlling offices.

For the Employees

Systems have increased the productivity of employees through the accurate computing of cumbersome and time-consuming jobs such as balancing and interest calculations on due dates, automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing the staff from performing these time-consuming jobs, and enabling them to give more attention to the needs of the customer, signature retrieval facility, assisting in verification of transactions, sitting at their own terminal and avoidance of duplication of entries due to existence of single-point data entry.

With the implementation of systems in the banking sector, itenables to provide efficient and convenient service cost effectively. Banking is more service oriented. Therefore customers seek human touch even though more sophisticated technology is implemented. The understanding of customer needs, comments, criticisms or requests for new products are difficult while interacting with machines. Moreover, when customers only contact with their banks through electronic interfaces, it prevents banks to sell additional products to customers through cross-selling and upselling. So it hinders the marketing as well.

It is true that systems add value to the banking industry through advanced telecommunication and related technology. But it is difficult to expect all the things done by the systems since still they are just machines. Systems cannot understand the human feelings and requirements.

Furthermore every person doesn’t have same level of education and the computer literacy to attract and grab the innovations in the industry. Therefore banks should address the requirements of their entire customer base. For thisbanks should balance both systems and people component together.  Even though systems add competitive advantage, the industry cannot solely depend on the systems. Therefore both systems and the people component are equally important in banking sector.