Technology has allowed banks to conduct transactions over the intern

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Technology has allowed banks to conduct transactions

over the internet, also known as eBanking, and to more

easily merge into larger banks.Traditionally, bankers and

their customers dealt in face-to-face transactions that

allowed the assessment of trust on the basis of physically

observed information.

While some banks have resisted change due to the

traditional personal relationships they have had with

customers, electronic commerce dramatically reduces

transaction costs, use of paper, and the need for personnel

to deal with customers face-to-face.The recent financial

crisis in the banking industry required billions in

government bailouts to banks considered \"too big to fail.\"

Some have argued that the loss of smaller banks with

personal connections to customers and local business

operations led to the crisis.

Do you think that eBanking\'s efficiencies are worth the

reduced personal contact with banks and work force

reductions?

Do you think that there is a connection between the

demise of the local bank and the banking crisis? If so,

what are the implications for the future?

Solution

The face of the business has entirely changed due to the

advancement in technology and there are always certain

advantages and disadvantages. This technological

advancement cannot be blamed for this loss in business

because it is the key driver of the global economy. It has

provided numerous benefits to the customer as they can

carry out the banking activities anytime and anywhere. On

one hand, it has reduced the social contracts and on the

other hand has provided numerous benefits. The reason of

this inefficiency is that the customers still does not trust

the banking on internet. Moreover, the transactions and

websites are made in such a way the person who is

technology savvy can understand; it is difficult especially

for the illiterates. Moreover, the normal person still resist

in carrying out the banking activities on internet because of

unsureity if the money transfer button is pressed twice.

Thus, the fear for online banking of the common man has

still not eliminated. In order to improve the business, the

banks needs to focus on e-CRM activities so as to stay

connected with the customers.

No, according to me, there is no connection between the

demise of the local bank and the banking crisis. This is so

because small banks are not able to grow in the same

manner. This demise is due to certain other disabilities

which are referred as banking crisis. The big players in

banking definitely are to blame nonetheless and this

includes government.

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Technology has allowed banks to conduct transactions over the internet, also known as eBanking, and to more easily merge into larger banks.Traditionally, bankers and their customers dealt in face-to-face transactions that allowed the assessment of trust on the basis of physically observed information. While some banks have resisted change due to the traditional personal relationships they have had with customers, electronic commerce dramatically reduces transaction costs, use of paper, and the need for personnel to deal with customers face-to-face.The recent financial crisis in the banking industry required billions in government bailouts to banks considered \"too big to fail.\" Some have argued that the loss of smaller banks with personal connections to customers and local business operations led to the crisis. Do you think that eBanking\'s efficiencies are worth the reduced personal co ...
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