The Internet is a vast network that connects computers and other electronic devices worldwide. People can share information and communicate from anywhere with an Internet connection through the Internet.
The Internet provides a powerful and general capability to be used for almost any purpose that depends on information. It is accessible by every individual who connects to one of its constituent networks.
The Internet has been very important to man since its inception, and it has helped in the communication of humans on earth. Much communication has been passed through the Internet from one region to the other.
The versatility of the Internet is so broad that it is being used in various ways. It is used as a form of communication and also a form of advertisement. The Internet has helped in various ways, but we would be talking about how effective it has been when it involves the financial sector, which brings us to internet banking.
According to the Merriam-Webster dictionary, a bank is an establishment for the custody, loan, exchange or issue of money, for the extension of credit, and facilitating the transmissions of funds.
The word bank was derived from the Italian word “banco,” which means bench because the Jews living in the country had benches in their marketplace to exchange money and bills. When a banker failed, his bench was broken by the populace, and from the circumstance, we have the word “bankrupt.”
Since its inception, the introduction of the bank has been pivotal in the handling of finances. Its introduction brought about the end of various means of keeping money, though some people from some parts of the world still maintain the old ways of saving.
Banking is a necessity in our world today that both the old and new generations are involved in every form of banking. The use of banks manually, whereby people go to the bank to make every type of transaction, used to be the norm before the technology or jet age where technology has played a major role in every aspect of life, including finance. The introduction of the Internet paved the way for many developments, and of the truth, life has never been easier.
From far and near, communication and business deals are being made even without seeing each other. Meetings are held through virtual platforms and audio platforms as long as you have a constituent of any internet network. The Internet has been used at companies, schools, homes, religious, airports, hospitals, and banks.
The introduction of the Internet gave birth to many things, including electronic business, which has made business less stressful and easier; even from the comfort of our homes or anywhere that we are, it can still be used anytime as long as the constituent of the internet connection is strong in that heterogeneous area. The Internet is all that is needed to make it work.
Electronic business uses internet facilities to connect, facilitate and empower business process activities and effective flow of communication and collaboration within an organization with its customers, business stakeholders, suppliers, and the outside world electronically.
E-business has transformed the traditional business practice, and practically all organizations presently use the platform actively.
The introduction of E-business brought about the decline in transactions held in the bank as a new process called “internet banking.”
Internet banking has given banks the opportunities to impress customers, encouraging them to keep their patronage. There are increasing demands for more profits, turnover of resources, guaranteed customer services, and a new vision for a strategic breakthrough in a competitive banking environment. As customers seek multiple service providers for broad selection and convenience, banks also seek for streaks of customers.
With the rapid and extensive increase in technology, innovation and telecommunications, new distribution channels in the financial sector are coming up rapidly, in numbers and form, from ATMs, telephone banking, with Internet Banking, is one of the latest in the chain technological wonders. Internet Banking was thought to signal a revolution in banking distribution. Banks invested heavily in the development of the Internet channel.
Internet banking uses the Internet as a remote delivery channel for providing services such as opening deposit accounts and electronic bill presentation and payment.
Internet banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. Online banking is also referred to as Internet banking, e-banking, virtual banking, and other terms.
This new channel has added a new dimension to customer satisfaction and how it can be affected positively. All organizations exist and strive to become an integral part of the lives of their customers and therefore always strive harder to keep satisfying their customers through better channels of delivering their offerings.
Many factors impact customer satisfaction, one of the most important being service quality. Due to the varying nature of the products offered in the manufacturing and services sectors, the definition and measurement of service quality could not be the same for both.
Especially in the present era, with the emergence of the Internet as a major service delivery channel, the need for a scale to measure the service quality in electronic media of services was felt strongly. Hence, service quality was taken up by the research scholars specifically in terms of the e-services, which led to the development of various models that helped measure e-service quality in the services.
Benefits of Electronic banking
Available statement of account
With Internet Banking, you do not need to wait for your bank’s statement to come in your mail, but you can face it in a flash by requisitioning it via your account. All you have to do is print it, and you can have your most recent statement on hand.
Pay Bills Online
Paying bills online is another quintessential benefit of internet banking. There is a list of companies in your banking account to pay bills, such as internet subscriptions, electricity, or utility companies.
Access To Online Products
Some products are only available via the Internet that is only available to business owners who are going to the bank directly.
These bank products presented to the Internet provide advantages such as instant funding and flexible repayment options.
Secure Online Transaction
In online banking, safety is very important because it involves money and confidential data.
Your account needs to be protected from online business fraudulent people. And for the security of this, IDs are created with passwords and sometimes On-Time Passwords(OTP), card security numbers and encryption sites. With all these, the security of your internet banking is on a high.
Records Are Easy To Find
In internet banking, you can easily find your records in your account, and all you have to do is go to your transaction history, select the date and the type of transaction that occurred on that date.
Customer Assistance Desk Always Available
When you experience problems or difficulties with your account, all you have to do is call the customer care number seen on the internet banking or perhaps send them an email indicating the particular type of problem you encountered, and it will be resolved quickly.
Send Or Transfer Money
The major benefit of internet banking is transferring money from any part of the world and whenever you choose to do it.
Money can be sent to another of you from that bank or perhaps to your business associate irrespective.
Easy To Update Information
In Electronic banking, you can edit your profile simply by entering into your online account.
Effect of Electronic Banking on customer satisfaction
Service quality has been recognized as a dominant factor in maintaining a competitive advantage and sustaining satisfying customer relationships. Service quality is one of the factors contributing to customers’ satisfaction judgments.
Service quality in banking websites may boost customer satisfaction because, in internet banking, a customer can access a variety of financial transactions.
Ma and some others analyzed website quality factors that could influence e-banking customer satisfaction in the Chinese commercial banking industry. They found that e-service quality dimensions: efficiency, interactivity, security, information, ease of use and content were the key factors to affect customer satisfaction in the e-banking service.
Ariff and others examined the relationship and impact of e-service quality and e-Satisfaction on e-Loyalty in internet banking.
Without further ado, let’s look at the effect of internet banking on customer satisfaction. Here are some effects;
The use and speed of accessing and using the site. Internet banking has a strong internet network that makes the service strong and fast in accessing, making it very accessible for the customer and easy to use.
There is a degree of privacy for customers. They can only access it, and no other person can access it without knowing the password, and as such, it protects the customer’s information from other people.
There is a free system available for the correct technical functioning of the site.
There is effective handling of problems, and it returns through the site when using internet banking. There is a quick response on anything you type or want to do, which helps the customer’s use of the platform quickly.
Internet banking helps with easy contact through the assistance of the bank representative or perhaps a robot that can be easily accessed without a representative.
The various dimensions of the internet banking service quality that were considered while making the study were: Efficiency, System Availability, Responsiveness, Privacy and Contact.
The study revealed that efficiency, privacy and the website design are the major integral determinants of internet banking services quality.
The empirical results show a direct relationship between internet banking service quality dimensions and customer satisfaction in the banking industry.
Understanding the factors revealed in the study allows bank managers and policymakers to undeviating efforts and resources most effectively and efficiently to increase the bank business in the long run and encourage new customers to adopt internet banking and retain the existing ones.