Driving Forces Of Ecommerce In Banking Sector Information Technology Essay

Driving Forces Of Ecommerce In Banking Sector Information Technology Essay Ecommerce is the abbreviated form of the concept of Electronic Commerce. This concept was initially introduced as an alternate for onsite trading. Selling and purchasing of goods was done using electronic systems like internet. E commerce ha spread world wide with the increasingly use of internet technology. Now the ecommerce has also spread in other business environments like tourism, banking, employment, real estate and teaching. Ecommerce has become a more convenient platform for exchanging goods and services. E commerce has also broadened the sense of global market as people can buy and sale goods and services to or from a person sitting overseas. Ecommerce has helped the consumers in many ways. E commerce provides a better insight about the product and services offered by a company. All the major retailers of the world have entered the business system of ecommerce because of the increasing use of it. In the initial stage of the ecommerce the startup companies captured the market share of well established conventional retailers only by using e commerce system for selling there product. Now the ecommerce has improved the service of each sector which has implemented the idea in their system. Due to ecommerce tourism sector has improved because now people do not have to go to the registration counter to get tickets for some place they can book their tickets online using various ecommerce sites. Banking services have drastically improved after the ecommerce system. Customers do not have to stand in queue for hours for some small things like checking balance, fund transfer etc. Ecommerce has also eased the tasks of HR managers of companies as the websites of most companies now have a career section where the aspirants can view the current openings in the company and apply for the suitable job. HR managers can view job application on the website and contact suitable applicant for further conversation. Many ecommerce sites provide facilities related to real estate business where people can get information about the different lands. Many sites like amazon, ebay, rediff have implemented the ecommerce system in the field of teaching. Study materials, books, journals, magazines etc. are available online and people can buy or subscribe them. Knowledge management system is another form of ecommerce which has improved the knowledge sharing system and has been beneficial for the education system. (Concept: Ecommerce) Banking Ecommerce E commerce in the banking sector is also known as internet banking as various tasks of banks is being done on internet. Banks have enabled electronic services to improve customer services and reduce the work load of the employees. All the normal daily bank jobs can now be done using the banks web portal. Following banking service have been transferred to the ecommerce system of the bank: Financial transactions are now being performed by using the banks online banking system or ecommerce system. These transactional services include presentation and payment of bills, fun transfer from one account to other account, investment facilities, and application for loans can be submitted on the ecommerce system of the bank. Customers can generate the periodic financial statements of their bank account by availing the internet banking facility of the bank. Long queues at the cash counter can be avoided by using the fund transfer facility on the ecommerce system of banks. ATM service is also a form of ecommerce system to transact cash without standing in long queues at the cash counter. Other non transactional services like getting bank statements and checking balance in the account are also being performed on the ecommerce system of banks. (Silvain de munck, 2001) Driving forces of Ecommerce in Banking Sector Following are the three major forces that support the use of ecommerce system in the banking sector: Economic forces: This is one the most important benefits of the ecommerce system in the banking sector. Ecommerce system are economic efficient as the cost of communication is reduced, one time investment in the infrastructure establishment will be cheaper than appointing extra staff to attend more customers, electronic transactions will be faster and more economic and better customer services can be provided on comparatively low cost. Ecommerce system of banks will also enable effective communication between all the branches and a centralized database of customers and their information can be maintained by using ecommerce system in banks. Market forces: Internet banking facilities are proved to be an extra advantage for the marketing of banks. Internet banking provides better and enhanced customer services and support. Internet is he best way of marketing in todayà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s global scenario. Technology forces: Advancement in technology is another major force for implementing ecommerce system in the banking sector. In this competitive era every organization has to walk parallel with the latest tools and technologies otherwise they will loose competitive advantage in the market. There has been much advancement in the internet security which has made the ecommerce a more reliable and secures way of banking. (Silvain de munck, 2001) Conclusion Ecommerce is the technical way of selling and purchasing goods or services. Implementation of ecommerce in each sector has improved the performance and efficiency of that sector. The banking sector has taken huge advantage from the ecommerce or internet banking system. Ecommerce has reduced the pressure of employees of banks and increased the level of customer services. The customers of banks are now happier and satisfied as they are also feeling relaxed with the advanced ecommerce system of banks. Many economic, marketing and technological forces have attracted the banking sector towards the ecommerce system. The current advanced technology has made the ecommerce system a more secure, reliable and easy system for day to day banking tasks.