Online Banking

Topics: Bank, Financial services, Commercial bank Pages: 11 (3195 words) Published: February 4, 2013
Advances in Applied Economics and Finance (AAEF) Vol. 2, No. 2, 2012, ISSN 2167-6348 Copyright © World Science Publisher, United States


Analysis of SWOT on Internet Banking

Yan-Qin Su, 2Ying-Jun Sun

1 2

Yan-Qin Su, Business School, University of Shanghai for Science and Technology, Shanghai, China Ying-Jun Sun, Business School, University of Shanghai for Science and Technology, Shanghai, China Email:

Abstract –With the development of Internet, online banking has become a development trend of Bank. It also provides more opportunity for the profits. The advantages of the online banking draw attentions from each bank. Its convenience is helpful to develop the bank markets, but also can improve the bank's financial service level. So each bank searches for more innovative financial products to pursue the market share. The SWOT analysis-based method on the internal and external environment provided the theoretical basis for online banking. The strategic analysis shows the research value and has certain practical significance. Keywords –SWOT analysis; Internet banking; Strategic research

1. Introduction
The first internet bank in the world is the United States of "security first network Bank" (SFNB), is founded on October 18, 1995. The bank has no branches and the banking is operated through the Internet, after that the internet bank starts to be followed by national banks. Internet banking on the banking industry is very farreaching. It’s not only for existing banks to open up a new sales channel for providing its products and services, and copying the existing banking. But importantly It changes the traditional banking business model and business concepts. It promotes a new form for the bank industry and reflects the change of social system arising from the information technology revolution. Compared with the foreign internet banking China Merchants Bank (CMB) carries out the first internet bank in China in 1997. At present CMB has online business banking, online personal banking, online payment systems, Internet security systems and full systems included the above. After that The Bank of China, The Industrial and Commercial Bank (ICBC) and China Construction Bank (CCB) follow the internet banking. The rapid development of internet banking attracts attention other banks. With the pace of the E-commerce the internet banking becomes universal. After 15 years of development, Internet users increase rapidly in China and China's growing momentum in the online banking user is rendered. The data from 2010-2011 China online banking annual monitoring report through the IResearch indicates that China online banking transaction size reaches 549.5 trillion yuan and increases of 49% in 2010. In particular the online personal banking is the fastest developed part, has a sustained growth trend. The internet banking challenges the traditional banking. It takes advantages in the cost and convenience

compared with the traditional banking. If the bank services the users through internet, it will occupy the market share rapidly. This model on internet draws the attention of the bank. The main cause is that it has two main advantages. One is that can open a new channel for the sales of the bank products. The other is that it serves the clients friendly. Meanwhile, the entrance of the foreign internet banks gets attentions of the domestic bank. After the mature development the foreign internet banking it has shaped a perfect system. It consistently innovates in the technology and bank products, and impacts the extension of the domestic internet bank. So the study for the strategic ways shows the importance of the competition between the internet banks. On the background through the SWOT analysis it will find the manners to compete other internet banks and promotes the services on the internet banking.

2. SWOT Analysis on Internet Banking
SWOT analysis is a way for...
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