E Banking
Koskosas I.
THE PROS AND CONS OF INTERNET BANKING: A SHORT REVIEW
THE PROS AND CONS
OF INTERNET BANKING: A SHORT REVIEW
Ioannis KOSKOSAS
University of Western Macedonia, Kozani, Greece ioanniskoskosas@yahoo.com Volume 1 Issue 1 / December 2011
Business Excellence and Management
Abstract
Bank fees often strike fear in the heart of the average banking customer. According to a survey by Bank-rate, a company that reports on banks and banking, customers continue to get smashed with higher fees, ranging from
ATM charges to minimum-balance fees. In addition, some customers are even charged a commission fee just to speak to a real live bank teller! In a recent checking account pricing study, it was found that interest-bearing checking account customers charged the worst. The average interest charging checking account earns only 0.27 percent interest while account holders pay $10.86 on average in monthly fees. This review in internet banking seeks to show an alternative to banking through “bricks and mortar” and provide an understanding of the pros and cons of going online. Many traditional banks offer some online services, but the very cheapest choices some will find are internet-only banks, which operate specifically online. Customers can get the same services online that are used to from traditional banks, such as checking and savings accounts, CDs, and other financial products and services. Those who are interested in paying lower fees for better customer service, they should investigate internet banking.
Keywords: Internet banking, E-commerce, Financial engineering, Online economic review.
1. INTRODUCTION
As commercialization of the internet evolved in the early 1990s, traditional “bricks and mortar” banks began to investigate ways of delivering limited online services to reduce operating costs. The success of these early efforts led many banks to expand their internet presence with improved websites that featured the ability to open new accounts, download forms
THE PROS AND CONS OF INTERNET BANKING: A SHORT REVIEW
THE PROS AND CONS
OF INTERNET BANKING: A SHORT REVIEW
Ioannis KOSKOSAS
University of Western Macedonia, Kozani, Greece ioanniskoskosas@yahoo.com Volume 1 Issue 1 / December 2011
Business Excellence and Management
Abstract
Bank fees often strike fear in the heart of the average banking customer. According to a survey by Bank-rate, a company that reports on banks and banking, customers continue to get smashed with higher fees, ranging from
ATM charges to minimum-balance fees. In addition, some customers are even charged a commission fee just to speak to a real live bank teller! In a recent checking account pricing study, it was found that interest-bearing checking account customers charged the worst. The average interest charging checking account earns only 0.27 percent interest while account holders pay $10.86 on average in monthly fees. This review in internet banking seeks to show an alternative to banking through “bricks and mortar” and provide an understanding of the pros and cons of going online. Many traditional banks offer some online services, but the very cheapest choices some will find are internet-only banks, which operate specifically online. Customers can get the same services online that are used to from traditional banks, such as checking and savings accounts, CDs, and other financial products and services. Those who are interested in paying lower fees for better customer service, they should investigate internet banking.
Keywords: Internet banking, E-commerce, Financial engineering, Online economic review.
1. INTRODUCTION
As commercialization of the internet evolved in the early 1990s, traditional “bricks and mortar” banks began to investigate ways of delivering limited online services to reduce operating costs. The success of these early efforts led many banks to expand their internet presence with improved websites that featured the ability to open new accounts, download forms
References: Cronin, M. J. (1997), Banking and Finance on the Internet, Toronto: John Wiley and Sons. Deutsche Bank Research Report (2006), Online banking: What we learn from the differences in Europe, retrieved September 10, 2011, from <http://www.dbresearch.com>. Gersovitz, M. and Stiglitz, J. E. (1986), The Pure Theory of Country Risk, European Economic Review, 30(1), 481-513. Goldsmith, R. W. (1987), Premodern Financial Systems: A Comparative Study, Cambridge: Cambridge University Press. Kaufmann, H. (1985), Germany’s International Monetary Policy and the European Monetary System, New York: Brooklyn College Press. Wallich, H. C. (1983), World Money and National Policies, New York: Group of Thirty.