The new frontier of electronic banking is the online bank, where customers can access many banking functions via the Internet, including balance queries, transfers, automatic payments, and loan applications. For the consumer, online banking offers greater convenience and access to information than even the ATM, albeit without the ability to obtain cash. From the bank’s point of view, online banking offers a new way to reach and serve customers while relieving the strain on the ATM hardware and network. However, use of the Internet increases vulnerability to hackers and raises issues of privacy and the handling of personal information similar to those found in other e-commerce venues. In 2006 a Pew Center survey found that 43 percent of Internet users were banking online—a total of about 63 million American adults. Other surveys have found about a third of Internet users now pay bills online. There are also a relatively small but growing number of Internetonly banks, many of which are affiliated with traditional banks. A particularly attractive feature of online banking is the ability to integrate bank services with popular personal finance software such as Quicken. As impressive as it has been, the growth in online banking may have been inhibited by a perceived lack of security.
A 2006 Gartner Research survey reported that nearly half of adults surveyed said that concerns over the potential for information theft and computer attacks had affected their use of online services such as banking and e-commerce transactions. Gartner translates this to an estimated 33 million U.S. adults who do not bank online because of such concerns. (Banks are frequently impersonated in deceptive emails and Web sites—see phishing and spoofing.) In response, government regulations (FFIEC or Federal Financial Institutions Examination Council) guidelines issued in October 2005 required banks by the end of 2006 to provide detailed risk assessments and mitigation plans for dealing with data breaches. Large banks spent about $15 million each on this process in 2006. Much greater expenses are likely as banks find themselves compelled to purchase and install more-secure user authentication software. They face the multiple challenge of securing their systems while reassuring their users and not forcing them to go through complicated, hard-to-remember log-in procedures. Credit card issuers are also starting to turn to the Internet to provide additional services. According to the com- Score service 524 million credit card bills were paid online in 2006. By 2007 about 70 percent of all credit card holders had logged on to their accounts at least once. Many customers have responded to incentives to discontinue receiving paper statements.
Conclusion:
today, sophisticated of technology can not be stop, and can not be separate with this impact. for example in the banking world. The new frontier of electronic bankingis the
online bank, where customers can access many banking functions via the
Internet. For the consumer, online banking offers greater convenience and
access to information than even the ATM, albeit without the ability to obtain
cash. From the bank’s point of view, online banking offers a new way to reach
and serve customers while relieving the strain on the ATM hardware and network.
However, use of the Internet increases vulnerability to hackers and raises
issues of privacy and the handling of personal information. but many customers have responded to incentives to discontinue receiving paper statements.
Source: http://www.englisharticles.info/2012/10/02/online-banking/
