The Indian Internet Banking Journey

About Internet Banking Contd...

When such trends are observed, steps are automatically taken to prevent that account from being used. The most significant benefit of Internet banking is the ready accessibility of bank accounts at all times. The inconvenience of visiting and waiting at the banks is also eliminated.

FIGURE I
INTERNET BANKING TRANSACTION MECHANISM

Source: ICMR.

This result in, enhanced customer satisfaction, reduced customer attrition and increased customer base. Internet banking considerably reduces transaction costs for the banks. According to a study conducted by consultants Booz-Allen & Hamilton, the cost of an average transaction on the Internet is as low as 13 cents, compared to $ 1.07 through the branch, 54 cents through the telephone and 27 cents through the ATM. The study also stated that Internet banking helped banks reduce the branch load and attract future customers. In India, the cost of one banking transaction through the Internet amounted to 10 paise to the bank, as compared to Re.1 through a branch, 45 paise through an ATM, 35 paise through phone banking and 20 paise through debit cards.

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Case Details

Case Code : ITSY003
Themes: EVA Financial concepts
Case Length : 5 Pages
Period : 1997-2001
Organization : L&T
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Construction - Building Materials & Equipment, Financial Services

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