Bankers' Perspectives on Internet Banking

In every industry, E-commerce is revolutionizing the way business is conducted. New business models are replacing outdated ones and organizations are rethinking business process designs and customer relationship management strategies. Banks are no exception to this transformation. This study examines bankers' views on providing banking services to customers using the web. Specifically, it addresses issues such as the strategic need for Internet banking, its effect on customer-bank relationships, and customers' experiences in Internet banking. Data collected from 75 banks show that most banks do not yet offer full-fledged Internet banking. However, most have plans to do so. Furthermore, bankers see Internet banking as a strategic opportunity that can reduce transaction costs, enhance customer service, increase the customer base and improve cross-selling opportunities. Also, Internet banking is perceived more favorably by banks that offer it compared to those that do not.