The paper "Internet Banking Organizations" is a wonderful example of a report on macro and microeconomics. This report presents the issues faced by Internet banking organizations and the ways to deal with them. In addition, it would also include a marketing plan which would suggest how to best mitigate the existing deficiencies and market the financial products more effectively. Online bankingInternet banking relates to performing transactions, payments, etc. over the Internet through a bank, credit union, or building society's secure website. This allows customers to do their banking outside of bank hours and from anywhere where Internet access is available.
In most cases, a web browser is utilized and any normal internet connection is suitable. No special software or hardware is usually needed. ServicesOnline banking usually entertains its customers by providing such services as Bank statements, Electronic bill payment Funds transfer, Investment, Loans and advances, and Account aggregation, etc. Current ScenarioVirtual Banks are now growing in number and are observed to have low costs compared to traditional banks, hence, they have been able to offer higher interest rates. Some banks have both physical branches as well as online banking facilities while others only operate in cyberspace. There is one serious issue that is commonly faced by most organizations and it is that of security.
Though protection is provided through password authentication, safety still remains a major problem with the online banking system. It is also considered more vulnerable to fraud since a relatively small number of people use internet banking compared with the total number of banking customers worldwide as mentioned in the report (13% of the UK adult population in 2004). Problems with Internet BankingThe first and foremost issue related to Internet Banking has been that of an increasing rate of lapsing amongst Internet bank customers.
According to the Research conducted by Virtual Surveys in late 2004, there exist three key barriers which are holding the majority back from banking online. These include a general lack of awareness of the benefits of online banking, concerns about security, and lack of personal support in online banking.
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