Today, Information Technology revolutionized our life almost in every filed. One of among several blessing of information technology is Internet Banking services that brings ease and comfort for our banking activities. Over few years Internet Banking has evolved as convenient, self-serviced technology, cost-reducing and time saving channel. Internet banking is available 24x7 across geographies. In last few years, the number of internet banking users has been increasing rapidly. In present hyper competitive environment internet banking works as a competitive differentiator among banks. Internet banking has become an important revenue builder for banks.
Increased competition in the banking sector and customer demand is forcing banks to provide their services online (Southard, P. & Siau, K, 2004). Banks try to gain competitive advantages in technological atmosphere by adopting new technological developments in their area as soon as possible (Ozcan, 2007; Chang 2002). Information technology developments in the banking sector have speed up communication and transactions for clients. It is vital to extend this banking feature to clients for maximizing the advantages for both clients and service providers (Safeena, Abdullah and Hema, 2010, 2011; Qureshi et al, 2008).
In the past, internet banking has been adopted by banks mainly to decrease costs and increases revenue by reducing staff and branch networks. Today, banks are visualizing the internet banking as a strategic enabler of customer services and others view internet banking as the key to expansion. Internet banking has gained acceptance throughout the world as a new delivery channel for performing various banking and financial activities.
Internet Banking is an internet portal, through which customer can use different kinds of banking and financial services ranging from bill payment to making investments. In internet banking system every bank has a centralized database that is connected with other banking system through web-based environment. All the services that the bank has permitted on the internet are displayed in menu. Through that any service can be selected by the customer and further the demo or working manual is provided by the nature of service. It would be a borderless entity permitting anytime, anywhere and anyhow banking. The shift from the formal banking to internet banking has been a 'leap' change (Qureshi et al. 2008). Internet banking provides an ideal platform for commercial exchanges and financial transactions (Luštšik, 2003 and Calisir et al 2008).
Types of Internet Banking:
Internet banking has been broadly classified into three groups (Thulani et al, 2009; Yibin, 2003 and Diniz 1998):
This has been identified as the first level of internet banking. Typically the bank has the marketing information about the bank’s products and services on a standalone server. The risk is very low as informational systems typically have no path between the server and the...