Authors : M. Abu Bakar Siddique , Mohammed Shahedul Quader and Akhter Jahan
Abstract: The banking industry is currently in the midst of a major revolution. The forces of technological innovation are changing the banking landscape, and the ability to harness technology will decide the new winners and losers in the industry. The most important technological driver is the increasing use of the Internet as a distribution channel by banks to reach their existing and potential customers. The proliferation of PC technology, together with the emergence of a low-cost, world-wide communication network, is affecting how banks reach customers, how they compete, and how they remain viable. This cultural shift in the provision of banking services means a distinct change in the manner in which banks develop and sustain customer relationship. The aim of this article is to examine the evolving online banking environment and for this reason, Porter’s five forces’ model has been used for industry evaluation and the impact of the Internet on the banking industry has been assessed. The reasons for the growth of Internet as a strategic delivery channel for financial services have also been examined. The transformation of the value chain model, from physical to virtual, is also discussed briefly. Here the key external issues, namely legal, regulatory and security also been identified, which affect the growth of the online banking.
M. Abu Bakar Siddique , Mohammed Shahedul Quader and Akhter Jahan , 2004. The Evolving Online Banking Environment in the Globe. Asian Journal of Information Technology, 3: 1196-1202.