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Strategies to gain new customers via internet banking

1. Introduction

It includes the following topics: a. A clear statement of the purpose of the thesis b. Reasons for the study c. Statement of problems d. Purpose of the study

a. The purpose of the thesis:

If students have to write their M.B.A theses, which make a large number of significant errors, this is the main reason why their projects return for audit. Disappointed and falls, they need to proofread and to work for their dissertations. It has taken so much time for them to write their dissertations, and now they should start from the exact beginning. I shall show you how to avoid failure in the basic thesis and is, as you know about this failure. The most important thing about the dissertation writing is that you should understand clearly the purpose of the letter. The main purpose of writing of a dissertation is to provide a student with an opportunity to discover something new in the field of investigation. If the student can lead a deep, wise and profound Research, and can draw a clear conclusion about her research with any discoveries that present in the final dissertation, he reached the end. One more important thing is to writing a thesis that you should know about the latest discoveries in the field of investigation. That purpose, writing a dissertation, can be achieved through lectures and analysis of relevant sources thesis. A student should be aware of the position of the writer and should appreciate the critical position. There is no doubt that you will succeed in your dissertation, if you know the main purpose of writing a dissertation, which will be presented by me. Apply for M.B.A dissertation to get a piece of good advice. M.B.A dissertation is always willing to help you. For many courses forms part of a dissertation is to complete study for a degree. For some courses it is linked with work experience. It provides you with an opportunity to take a piece of individual research work and to really examine an aspect of the theme that you are studying closely.

b. Reasons for the investigation:

There are opportunities for the effective use of the Internet with regard to the banking industry. It is shown that may cause the appropriate application of today's cutting-edge technology at a significant competitive advantage for banks. This is illustrated by a scenario that focuses on the potentials of "advising on the Internet." For many consumers, electronic banking means 24-hour access to redeem with an automated counter machine (ATMS), or direct deposit of paychecks for the checking or savings accounts. But electronic banking now involved many different types of negotiations. Electronic banking, also known as electronic funds transfer (EFT), uses computer and electronic technology as a replacement for paper checks and other negotiations. EFTS is initiated through devices like cards or codes that you can, or that you authorize to accesses your account. Many financial institutions use ATM or debit cards and personal identification numbers (NEEDLES) for this purpose.

One uses other forms of payment cards such as those that require the most, your signature or a check. The federal Electronic Fund Transfer Act (EFT Act) covers some electronic consumer negotiations. Although Internet banking has been widely adopted in developed countries, there is a group of customers resisting the services. In other words, Internet banking, although proven to be a successful in novation is not yet adopted by the laggards have become, and therefore have all the expectations of banks did not hit. Therefore, the purpose of dissertation is to identify the reasons for the sales resistance to Internet banking. The special interest is to explore resistance among those who pay a customer who already has valid contracts for Internet, but preferably pays, pay their bills through ATMs. The goal is to identify the characteristics that generate resistance to Internet banking and their connections to values of individuals. To achieve the objective, 30 Finnish bank customers have used the detailed Central finished interviewing approach and the laddering interviewing process.

c. Statement of problems:

To develop strategies for banks is to get people to pay online which was drawn a sample of 369 consumers from two universities in Kwazulu-Natal. Universities were chosen because they are an untapped e-commerce market segment. Workers at universities fit the profile of typical Internet users. Data were collected a used tissue based on survey. Statistical analysis has revealed that more men have used Internet banking than females. Automated telling machines custom was far greater than Internet banking usage. A large percentage of Internet bankers have used the service for burying account transfers and balance test / statements. Safety was the main issue for not paying in-line. Potential customers who have wanted guaranteed safety and loyalty rewards to get them to pay online. Internet banking has the potential to grow among tertiary institution workers. Some of the problems are explained below:

Negotiation  Farms Explorers Risk

Negotiation / edited risk arises holdings of dizziness, the error, system interruption, or other unexpected events that result in the inability of the institution to provide products or services. This risk exists in every product and service offered. The amount of the negotiated risk is influenced by the structure of the processing environment of the institution, including the types of services offered and the complexity of procedures and supporting technology.

Credit Risk

In general, the credit risk of a financial institution to mere fact not equal, that a loan will be produced by an e-banking channel. However, management should consider providing an effective management information systems, including assuring the performance of portfolios produced bear pursued through e-banking channels.


The Funding and investment-related risks could increase with the e-banking initiatives of an institution that depends on the volatility and judgmental of the acquired deposits. The Internet provides institutions with the ability to bring to the global market their products and services. On Internet-based advertising programs can effectively yield-focused investors with potentially high-adapted resulting deposits. But Internet-produced deposits have the potential to attract customers, which may focus exclusively on rates, and a source of funding with risk characteristics that are similar to deposits has provided care. An institution may, by this potential volatility and its extensive geographical reach agreement and deposit account control to open the practice of personal meetings and involve the exchange of paper correspondence is expected.


Compliance and legal issues arising from the rapid growth in usage of e-banking is based, and the differences between electronic and paper methods. E-banking is essentially a new delivery channel where the laws and rules that may govern the electronic delivery of certain financial institution products or services to be ambiguous or even developing. Governing laws and regulations, consumers bargaining, require specific types of disclosures, notes, recordings or tours of conditions. These conditions also apply to e-banking and federal banking agencies continue to update consumer laws and regulations, the impact of electronic banking and online customer relationships to reflect.


A committee should understand the financial institution and manage the risks that are associated with e-banking services and the emerging risk management costs against the potential return on investment-bank Offered in essential services evaluated. Poor e-banking planning and investment decisions are to increase the strategic risk of a financial institution. Early adopters of the new e-banking services can be as forerunners who may expect to establish the needs of their customers, but by then incur higher costs and increased complexity in their decision.


One institution, e-banking services to offer, especially the more complex transactional services and significant increases in its level of reputation risk make risked. Some of the inputs, which e-banking affect the reputation of an institution may include, loss of confidence due to unauthorized activity on customer accounts disclosure or theft of confidential customer information to unauthorized parties(e.g. hackers), failure to marketing requirements, supply, failure to provide reliable service on the basis of the frequency, or duration of service interruption, customer complaints about the difficulty in e-banking practices and the inability of essential services desk to resolve problems, and confusion between services that are provided by the financial institution and the services which has been supplied by other businesses, which has been linked from the site.

d. Purpose of Study

E-Commerce revolutionized the way business is headed. New business models to replace outdated and organizations to think of business processes and customer relationship management strategies drafts. Banks are no exception to this transformation. This study examines the views of bankers on providing banking services to help customers use the tissue. Specifically, it speaks expenditure, such as the strategic need for Internet banking, its effect on client-bank relationships, and the experiences of customers in internet banking.

Advantages of internet banking to banks

I. Cost savings

Orr (1999) states, the electronic processing dramatically reduce the cost per procedure, according DiDio (1998), the average transaction cost at a full service bank about $ 1.07. It reduced to $ 0.27 an ATMS and falls to a penny if the same transaction is conducted on the fabric. Also, there are opportunities for banks to hand over customer invoices electronically. The cost to deliver invoices to be electronically much lower than when the bill was in paper form, which has been delivered through the mail. Irvine (1999) states, the electronic bill presentation costs 40% less than paper delivery. These cost savings can offer customer pays, and similar reduced costs of the banking system and still provides effective and differentiated services.

II. Loyal customers

Loyal customers have in a new study that was conducted by Forrester Research, 61% of respondents claimed that if their banks offered financial services that they wanted, they would prefer the service of the Bank use. With this knowledge of the Offering consumers interest in mind to move banks, a "hub" of financial services including bill presentation and payment, financial planning, estate planning, insurance, loans, and brokerage services. The Internet allows for these converging financial services not previously available in one central location.

III. Offer additional services

Do you offer additional services as mentioned above, to move many banks to offer customers a financial portal? This portal concept offers banks a new role in the business of serving customers. Simply an Internet presence has not supplied one income stream banks. However, by offering a wide array of products and services that can benefit from internet banking integration. By creating financial portal where consumers can manage a wide range of financial activities, such as stocks and mortgages, banks can benefit from offering Internet capabilities to help customers (Wah, 1999).

IV. Internet Profit Generation

E-commerce, if properly integrated into existing banking operations can lead to significant cost savings and higher profitability. Find cost savings due to automate customer negotiations, such as fund transfers, payments, account balance inquiries etc. Strategic alliances with insurance companies, mortgage companies and stock brokerage firms can lead to additional business opportunities that will otherwise go unfulfilled. In addition, banks can retain customers more effectively if offering services, the value-addition are. High-profit customers, which some studies suggest that entice the demographic of internet banking customers. Wells Fargo Bank online customers have an annual median income of $ 75,000 with higher education levels than the average wells Fargo customer (Hoffman, 1999a). Also this group of customers is more profitable than the bricks-and-mortar counterparts. They generate 50% more income than the average wells Fargo customer, holds a 20% increase in balance, yet uses 50% product, and its wear rate is 50% of the total wear rate. Furthermore, on average, it costs 14% less compared to those customers' bricks-and-mortar customers (Time well and Kung, wait 1999).

Advantages of internet banking to consumers

A. Cost savings

Cyberspace is cheaper to operate than brick and mortar structure, and this cost advantage can often be further passed to consumers. The Internet Banking cost structure allows consumers to receive cost savings, and financial benefits for depositing online. A comparison of the (e-banking) and depositing one (parent bank - a brick and mortar bank) offers an illustration of this point. For checking accounts Wingspan offers an interest rate of 4.5% interest, which is compared, one1%deposit.It also offers more options begins in the mortgage and insurance, with 60 loaning companies and 15 insurance salesmen. It also offers customers an advantage over to his parent in the field of electronic bill payment, which offers the service for no extra charge, while depositing, one invites $ 4.95 per month.

B. Access to additional services

On Basic transactional web sites allows customers to check account adjustments, possession and new banking statements. Systems that allow customers to initiate negotiations on-line, such as transferring money between accounts or making payments, provides customers additional benefits. These elevated sites allow customers to pay bills to request and review loans and mortgages, credit cards and checking accounts. The financial institutions that offer extensive online services, well, are set to be a leader (Hickman, 1999). By offering this great umbrella of the service trust of one who pays the institution, these companies can save a larger share of the financial transaction from a customer.

C. A good shopping stop:

Banks, adds real time loan applications, added the ability to make IRA investments, the opportunity to trade shares through their websites. The tendency for flocking that is pays predicted to shape the future of Internet banking on. This concept of "one-stop" shopping is convenient and leads to more satisfied customers.

Critical Review of the literature:

Paying online or Internet offers consumers and business like the convenience of managing banking and financial responsibilities of home A. Online banking can also be a lifeline for those who can not leave his house, or may live in rural areas where access can be restricted to banks. To be able to check your bank, savings and justify Digital Banking customers have a range of internet banks have to meet those needs to ensure customer loyalty. Consequently, change Internet banking services in general, and on finding feedback paid online services are important to this book. Our investigations of online banks allow you to compare internet banks and to find the best service that is available with investigations of Lloyd internet banking, a paid online, a HSBC and Barclay's internet charges among others. If you are Internet banking, please send us your internet, the review and makes known repaying us your thoughts and experiences of the personal Internet banking


 Checking your balance and statements online ii. Fund Transfers iii. Bill Payments iv. Managing savings and current account v. Cards service vi. Order cheque and books request vii. Please ask for stop cheque payments viii. Fixed Deposit accommodation ix. Requested by the Statement Internet distribution strategy decisions These are the key strategic decisions for e-marketing with strategic choices for traditional marketing. They engage in selective target customer groups and giving, how to deliver value to these groups. Segmentation that aim is to have differentiation and positioning of the entire key to effective digital marketing; the main thrust of the e-marketing strategy is takes decisions on the selective targeting of client groups and different forms of value delivery for online channels. It is a similar issue with e-buyer strategies - see link at the footer of the article. In an e-marketing context, we can say: a. E-marketing strategy is a channel strategy. Specific e-marketing objectives must be set adoption rate of e-channels have been compared to other channels for different audiences.  E-channel strategies thrive on creating a different value for all parties to a negotiated.  But E-channel does not exist in isolation, so we still need to manage channel integration, and acknowledges that the adoption of e-channels will not be suitable for all products or services or generates sufficient value for all partners.

Thus E-marketing strategy is defined as we should:  Communicate the benefits of using e-channel. Guide Put priority on public or partners for e-channel adoption of third targeted. Set priority products and has sold through e-channel purchased.  Achieve our goals through e-channel tactics for online customer acquisition, conversion (conspiracy) and retention. A strategic option exists to replicate offline segmentation, which aims at a differentiated manner, and in the online channels. While this is relatively easy to run the company will likely lose market share, compared with more nimble competitors who modify their approach to online channels. An example of a strategy makes no grocery shopping, where some pet shops have released to all parts of the country or not, not providing the service in general. These supermarkets will lose customers to the most enthusiastic adopters of online channels, such as Tesco and Sainsbury; the victory will be difficult to be back sides in future.  Segmentation - strategy aimed at - company online customers have different demographic characteristics, needs and offline behavior to its customers. It follows that different approaches may be required to segmentation, and specific sectors may be choosy need to be targeted. The manner  the online product differentiation strategy - competitors and service offerings are often different in the online environment. Develop a suitable online value proposition is as below describe an important aspect of this strategy. Has many examples of online information is based on the lower costs achieved distinction in and retaining online customers, which are then passed to customers.

Examples include:

Retailers offering lower prices online. For example Tesco (price promotions on selected products), Comet (discounted when compared to in store on some products)  Lower cost airlines offers flights to online bookings. Examples: easy Jet, Ryan air, BA.  Financial services firms offering higher interest rates on savings products, its lower interest rates on credit products such as credit cards and loans. Examples: Nationally, federal and Leicester.  Mobile phone network provider or Utilities, the lower cost of fares or discounts offered for customer accounts that are managed online paperless billing. Examples: O2, British Gas. Other options for differentiation are available on-line for companies where their products are not suitable for sale online, such as high value or complex products or FMCG brands sold by retailers. These companies may use online to add the brand or the product value by provide additional value services or different types of experience.

1. Online CRM strategy:

It will focus on various aspects of the customer life cycle for online customers in terms of:  Acquisitions - Strategies, attract new customers to a company, and existing customers about online channels, to migrate. Separate targets should be set for each. v Retention - using online channels proliferate, retention, and value of the customer company.  Reactivation - encouraging continued use of online channels from customers that have passed, for example, had online or home shopping service, buys the service, but has now stopped. This may be driven by setting targets for active customers. Customer knowledge (familiarity) - learning more about the customer through profiling and monitoring of behavior.

2. Online value proposition strategy:

It defines the value proposal for the acquisition and retention, engage with customers is online. Close communicative and promotional incentives which use to encourage trial. Program also defines the value creation through time - for example, white papers are available for example monthly or seasonal sales promotions made. 3. Online has targeted range strategy. Objective: Communicate with relevant online audiences to achieve communication goals. The communications typically include: building brand awareness and favorability build impulsive online purchase, growing offline purchase intent, list or migrating existing customers to online channels.

New customer acquisition:

Communication strategy with selected sections of online customers through media buying, PR, is to sending e-mail, viral campaigns and sponsorship or partnership arrangements. Driven by goals of the online audience is share and number of visitors placed in different sections. The strategy may involve: A. To drive visitors to the company office B. To achieves brand awareness and interactions on third sites. C. Building brand awareness, favorability and purchase intent on third may be a more effective strategy for low participation FMCG brands, where it will be difficult to encourage visitors to the site. D. Offline has targeted range strategy. Encourage Target: Potential customers who use online channels that Visit site and performed where relevant. Focus: New customer acquisition and migration of existing customers online. Strategy to communicate with selected customers, divide by offline direct marketing, media buying, PR and sponsorship, driven by goals of the online audience share and number of visitors placed in different sections. E. Offline Sales Impact Objective Strategy: Use on-line communications, sales achieved by offline channels. Focus: Achieving sales off-line (new or existing customers may be defined) strategy, such as on-line communications through the website and the e-mail offline sales i.e. influenced by phone, mail or in-shop can. F. Online Sales Efficiency Strategy Objective: Job visitors turn to buy Focus: Achievement sales online (may encourage new or existing customers to be) For transactional e-commerce jobs, a strategy that point visitors to purchase online - mercantile, promotions, etc. For other types of agencies multiplying conversion factors leads. As part of this strategy options to convert visitors to action, exploring reduce (or attribution installments) is, i.e. first-time buyer promotions, job design improvements, website and landing page optimization. Triggered event, has e-mails are used automatically to convert potential sales to sales.

1. This shows the changes in the strategic orientation:

Which are apart from walking organization structures by individual banks and different characteristics of national markets? The operating authority and the capitalization of banks play an important role in the selection of a suitable banking strategy. Country-specific factors include customer benefits, the degree of competition and informal legal framework, among other things, a. This article focuses on retail banking strategies. The emphasis is on retail banking in the broadest sense of the word. In fact, many banks have re-discovered in the retail cost, which pays for the collapse, charges of operating and investing activities and the fall in stock prices over the last few years. In section two we begin with a brief summary of known trends in banking. Sections three to four focuses on domestic and international banking strategies, respectively. Both sections have the same statement. The first part describes the retail banking strategies in general. The second part of the business with strategic positioning of the Rabobank Group and explains how Rabobank Group with these general trends and challenges overcome.

2. General trends in European banking

Which will be depositing the Europeans who pays the countryside, continue to experience dramatic change over the next few years (see McDonald. Trends affecting the banking industry include privatization, regulation and supervision, demographic factors, a technological innovation - yet - the EMU and the importance of propagating sustainable banking. The privatization of banks is high on the agenda in France, Germany and Italy. As the influence of government relations in competitive weight loss financial sector, and in the banking industry in particular, is experiencing significant change. Developments in regulation and supervision affect the banking industry through various Channels. It was not until deregulation of the financial sector will continue to eat away the barriers that deny access to the market for new suppliers of financial products. On the other hand, we see an increase in national legislation, particularly in the area of consumer protection. Regarding supervision, the new BIS capital adequacy rules, tremendous impact on the all banking business have. The combination of an aging population in Europe and financial constraints on state pensions will be a surge in filling retirement benefit plans to produce. These various developments are the implications for traditional forms of saving and, therefore, for the financing activities of banks have. In this respect, an analyst strong growth among institutional investors, including pension schemes before. 1. Does German bank Research for an analysis of banking strategies in European countries. 2. Argue that technological developments are fundamentally changing the cost structure, output mix and distribution channels of banks. Actually, he goes too far say that the developments in information technology the most fundamental force for change in the financial sector. Those procedures for deeper and more liquid markets resulting from EMU main euro will continue for some time.

These will increasingly cheaper and easier for medium and large corporate do, raise money directly in these markets instead of borrowing from banks. Finally, the growing importance is sustainable banking is a tendency that can not be denied. Banks will judge on their apparent social and selected environmental responsibility by customers and investors. 3. All these driving forces behind the structural changes in the Europeans, pays the industry not only has an independent effect on the structure of the market, but also acts on each other and thus enhance can. These factors include far-reaching implications for the market structure, the characteristics, such as: concentration, capacity, competition, efficiency and profitability. There is competition among banks but also between banks and other things, the new financial intermediaries to be strengthened. 4. Internal strategy of costs in retail banking. This section describes strategies in general. The strategic vision and the election of the Rabobank Group are discussed in section 3.2. 3.1 Inside strategic options, strategies Deposit, improve performance, and grow in domestic markets, can in three Main categories are divided:

To distinguish

A. Cost reduction B. Income growth or organic C. Associations, and acquisitions and cost reduction frets A. Different costs, the strategies can reduce as regular as thin down, multi channeling, and outside-in and co-sourcing. Thin down refer to the assessments of banks of ways to improve their internal cost structure, and to increase efficiency. This takes place when economic conditions are unfavorable, and happens every few years. New elections are on priorities and the bands of the working staff is close been investigated by the bank. Other companies, banks tend to "grow fat" in prosperous times, is usually compensated for in an economic downturn. An additional driver for cost reduction is the current trend of changing distribution channels that are caused by ICT innovations. Banks will be forced to invest heavily in ICT to stay competitive. Most banks now use a multiple approach in guiding the distribution of their products and the maintenance of their customers. Use branches, telephone, ATM and Internet all at once. The public has a massive shot to the new (direct) channels, which have reduced the number of visits to the bank itself, the development of customer and a blueprint for the future. This change provides customers preferred a great opportunity to reduce the cost of relatively expensive branch network to. Many banks are therefore currently re-examining their distribution processes.

However, ICT investments are high and therefore it is increasingly important for banks to organize their back offices in the most effective way. Sufficient scale to reduce unit, or transaction costs are the key. Banks can choose from several strategies to optimize their back office activities: co-sourcing, in sourcing to stock and white labeling off. Co-sourcing is the caterer of back office platform with another bank. In sourcing means the back office operations for other parties running in order to realize sufficient scale. Outsourcing is the order of activities and buying them back from other companies. White Label states the production of products for others, mostly non-financial parties without a label. 5. within organizations, can set up to scale economies of shared customer service centers are met. Shared customer centers show the interlocking of back office operations of several subsidiaries. They can be seen as an internal coor in sourcing initiatives. 6. This strategy is described under the income increases, the strategies.

Technically speaking depend, is the preferred strategy Art sourcing mainly on the shape of cost curves for a certain product, the position of the bank on that curve, and the price of the option. 7. There are three hypothetical cost curves from the shape of the curves may differ for different products, because the relationship between fixed and Variablekosten varies per product. The curves do not necessarily show a continuous downward slope with wax volumes, since likely at some point need new investments to be treated, propagation, characterized scale. Theoretically, therefore, can lead insourcing, intuitive results counter: multiplying unit cost. The position of the cost curves can also differ between countries, which are the main driver behind the current trend of outsourcing ICT activities to low wage countries such as India. Expect 2 Hypothetical development of average cost Source: Rabobank is not a useful long-term cost reduction strategy. Constantly focus on cost reduction will ultimately affect the quality of products and services and the innovative character of the institution, its competitive position and would jeopardize continuity. Too much focus on cost reduction will lead to poor workers and suggested a diminishing capability to take advantage of new market opportunities when the economic climate improved. As income or organic growth than cutting costs, banks also need to determine what strategy to follow, they want to increase revenues. Earnings growth can be achieved: Pull in new basically two ways Customers or outside costs (curves) into account, sourcing decisions also depend on the legal framework, issues concerning procedural complexity and its impact on the competitive environment from. Why you would you help a competitor in the market by performing (part of) its back office activities

2 to remain longer sold at Existierenkunden.

The feasibility of these strategies largely depends on the characteristics of the banking market of the specific country. First of all, requires successful cross-selling used and loyal customers. If customers are not used, it would be advisable to focus on new customers rather than to Existierenkunden. Expect 3 shows the customer's requirement profile of several European countries. Interestingly, the commitment levels differ widely from across Europe. Customers in the Nordic countries are generally quite satisfied with their banks. On the other customers in Southern Europe, and less in Germany with their banks. Link 5 customer commitments with the level of cross-selling displays are pleased that countries with high customer commitment, the highest cross-selling ratios shows. One would expect the potential cross-selling to be highest in countries that actually have limited cross-selling, but that is not visible. Sell countries with low cross-actually has the potential cross-sell low. The requirement profile seems therefore to determine the potential cross-sell to. 5, which are the reasons for these differences beyond the scope of this study? 6. Which illustrates the diagram that the scope for individual banks to attract new customers, through different countries. One strategy to increase revenues is to increase the share of wallet 'of retail products from customers (to satisfy all financial needs of the customer), the selling can take the form of cross-selling or deep. This strategy appears to be difficult because customers tend to be less loyal to a supplier of financial services.

The Internet has the financial services market more transparent and therefore reduced fidelity made. However, banks that want to increase the share of wallet, must focus on customer satisfaction (as we have already) seen. Another way of improving the loyalty of customers is the introduction of loyalty programs accommodative loyal customer's special benefits. Cooperating banks may have a strong loyalty tool, the membership of the bank. Cooperating banks must find clever ways fully benefit from this strategically important mark. Good knowledge of your customers is another prerequisite for a successful increase in the share of wallet. CRM systems are a useful tool to recognize this. A good understanding of the customer and a suitable product range are very important. This is why some banks choose to adopt a niche strategy, and focus on a specific customer segment. Banks do not have to limit themselves to their existing distribution network and brand. There are many alternative distribution options, which is often referred to as multi-distribution. The attractiveness and feasibility of this option depends on the circumstances in the country.

These circumstances include elements such as concentration, diversification possibilities, synergetic opportunities and the attitude of the supervisory authorities. 8 Domestic M & A's can deliver both cost and income synergies. Cost synergies are mostly reached when two banks merge, since they both have the same type of support departments, ICT systems and distribution channels. Inter sectoral mergers (for instance banks with insurance companies) show less promising cost synergies, because of the complexity of the integration process and cultural differences. These inter sectoral mergers do show the potential for revenue synergies, because the different products of the merged companies can be sold through the distribution channels of both institutions. However, in practice, these synergies are hard to achieve and the costs of the merger often exceed the revenue synergies. Forming an alliance can be an attractive alternative. The alliance offers the possibility to achieve synergies income without the expensive integration process. Alliances are often complemented with cross-shareholding to underline the dedication to the cooperation. Alliances that work out well may eventually lead to full mergers.

3.2 Domestic strategy of Rabobank Group

Overall strategy: The Strategic Framework

Rabobank's strategy is a mixture of cost reduction and revenue growth strategies. The actual implementation differs from competitors in significant ways. The strategic actions have to be in line with our cooperative identity. The main goal is to Maximize customer value instead of profit Maximization. Our shareholders are the members of the local Rabobank. However, a significant level of profitability is indispensable to survive and to FulFil the core objectives in the future. That is why financial targets are set for individual local banks and the subsidiary companies.

3. Methodology

they take on the use of the methods. g stated reasons are for Benutzentyp methods, appropriateness and the scope of application of negotiation / HOLDINGS RISK: In most cases, e-banking activities, the complexity of the activities of the institution and the quantity of his trial / holdings increase risk, especially if the institution offering innovative services which have not been standardized. Because customers expect that e-banking services are available 24 hours per day are available, 7 days per week, financial institutions should ensure that their e-banking infrastructure include sufficient capacity and redundancy to ensure reliable service availability.

Even institutions that e-banking, a critical financial consideration due to the availability of alternate channels not processed, it should carefully consider customer expectations and the potential impact of service disruptions on customer satisfaction and loyalty. The key to effective policing in adapting Kontrollierenverhandlungsrisikolügen, procedures and controls, the new risk suspensions taken to the e-bank are essentially introduced. Basic internal controls including segregation of duties, dual controls and reconciliations remain important. Information security controls, in particular, are more significant requiring additional procedures, tools, expertise, and testing. Institutions should determine, that have the appropriate level of security controls based on their assessment of the sensitivity of the information to the customer and the institution and the institution established risk tolerance level. Security controls are discussed in this publication are "risk management of e-banking activities" section under the heading "Information Security Program."

They CREDIT RISK: The following aspects of the online loan approval and development tend to make risk management of the borrower to process more challenging. If not properly managed, these aspects significant increase in credit risk. Authenticate the identity of customers for online loan applications and perform an enforceable contract; Monitoring and controlling the growth, pricing, guaranteeing the standards and produced ongoing credit quality of loans by e-banking channels; Monitoring and oversight of third-parties making business as an agent or in favor of the financial institution (for For example, an Internet) loans rise office or electronic payment processors; Estimating security and perfecting liens over a potentially wider geographic area; loans from individuals over a potentially wider geographical area, gathering, and Monitoring of some, and possible concentration, loaning out-of-field. LIQUIDITY, INTEREST RATE, PRICE / MARKET RISK The institution should modify his principles as necessary to address, bank financing essentially posing the following email: Potential increase in dependence on other fund or has very rate-sensitive deposits mediated; Potential acquisition of funds from markets where the institution is not authorized to deal in the banking system, especially if the institution does not set up to cover, and geographic limitations; Potential Impact consists of a loan or deposit growth from the extended Internet market, by including such a shock to capital market growth, and potential increase in volatility of the Fund should e-banking security problems negatively embark on customer confidence, or the sensation of the market.

4. Analysis

Presentation and analysis e.g. Description and placing the student; presentation of results, analysis of the results of Europeans, ONLINE STRATEGIES European Internet banking customers DEPOSIT determine 1999-2004 17,000 consumers in Europe, the current penetration and future predictions of the econsumer are likely to pay online business INSIGHTS Banks were the epitome of the solid, more relaxed wealth, secure behind its marble walls have been. But they have crisis after crisis in post-war face to face, challenge after challenge. Now they are the most serious threat to by all. Traditional banking system can not resist the onrushing impact of electronic commerce. A simple proof: the cost of a normal banking transaction in a branch are 100 times on the fabric. Anyone who doubts the willingness of customers to conduct financial business on the Internet, you need only look at the huge progress of online trading in investments. Led by Charles Schwab, upstarts have attracted huge traffic. Others deal is certain to follow these quick steps. Investment is an area where banks have hopefully set up, has sought to compensate for that lost business elsewhere. But they will not escape from Eherausforderung find anywhere.

Here, as in most markets, the Internet is a "disruptive technology". The phrase was used by Clayton M. Christensen in his book, the dilemma Des pioneer, has asked why so many successful companies - even the few that had met the challenges head-on - had been undermined by upstarts, use of new technologies. Mastleiter simply the threat, not out of stupidity, but ignored for sound economic reasons. Usually newcomers small or nonexistent markets, packaged functionality are offered below, have earned lower prices and smaller profit margins existent - and does not call for leaders, profitable customers had. The classic example is IBM and the PC. Although it has responded with enormous success for the small roast, led by Apple, has dealt with the giant small machines as a subordinate to his considerably more expensive, profitable and powerful mainframes. Its central processing unit-first strategy, Microsoft, Intel, Compaq, allowed, etc., to steal leadership in personal computers first, and then in computery at large. Appear during the millennium, appear the first few dutiful online banking even meaningless as the PC minnows have now made. But the newcomers are an IBM-style dilemma for banks to set up. Many are now setting up their own Internet banking operations, with various degrees of intensity. None has taken the enormous plunge scrapping of all existing branches, systems and processes and moving entirely into e-banking. Their strategies are partial, with traditional banking coming first and foremost. Enter the IBM-style dilemma.

Do they run Internet banking as an incidental add-on, just one of the channels available to customers? Or do they heavily promote internet banking as a business rival, perhaps under a different brand, that will cannibalis©, but not replace, the existing bank? Christensen's evidence from other industries is overwhelming. Unless threatened companies embrace new technology whole-heartedly, and pursue it outside the mainstream business, with a full mandate to attack the latter, they will not win was the. Even the great IBM fell from 80% of PC sales to single s because the mainstream business dominated its thinking. But banks have even greater reason than IBM to embrace the new technology - because the old technology is causing so many problems, anyway. Above all, their internal systems are near-epidemic and inadequate. Microsoft Chairman Bill Gates has this issue on a bench facing roundtable in Canada. As he has stated in business @ the speed of thought, banks have incompatible databases. You can build a complete picture of their relationship with any one customer. He offered a simple solution, building you see a great interface for customers to data on the Internet, then use the same interface, data inside look '. Thus, banks can replace all other types of observation data '. You can move to improve the backend database to new technology '. As Gates said, the new interface, the Bank, both inside and outside '. There will be a new kind of bank, however. That is the stumbling block. People in the old bank may follow the old ways.

To obtain the anomaly (a true story) of the bank which has invested millions in a beautiful front, interactive website for customers, but still requires that people working 13 backend manually a single hearing, which is produced through the tissue. Electronic banking is not evolutionary but revolutionary - and revolutionary bankers usually have a contradiction in terms. The commercial promise of e-banking, but has already produced some radical responses. As in the examples of Christensen, though, most of them come from outside the traditional competitors. Significantly changed, trusting companies (much less conventional banking business, has defended) are good to have fear. Among insurance companies, has set a sensible person too. Early on it was the reprinting of the ice, his spectacular new venture into direct einzahlend by telephone shifted to the tissue. Even before the first all-electronic banks, with names such as eBank and had become BankNet, a significant presence, Halifax, the largest of the former building society, have decided to compete head-on. His independent Internet operation, codenamed Greenfield, will try to innovative technology combined with user-friendly online service to customers. It is easy to see the attraction for last: a service that it provides can watch new negotiations, and account adjustments, and activates a standing order details, pay bills, transfer funds and mandates is to internally through a single Web site. The forces of attraction with banks are also obvious. You can achieve true customer focus; replaced by rapid development and roll-out of the inevitable nowadays) of new products (is, and repeats the stroke of the few people models, such as wells Fargo. The California based on the Bankprahlerei, our most active banking business is invisible '. It adds 1,000 online customers are added daily to a site that has dealt with a doubled amount of 22 million, paying in meetings last year. Nothing else in the banking industry offers such a dynamic growth. There is no doubt that Europe will share the dynamism.

According to BlueSky International Marketing, which surveyed 863 Internet retail banking outlets in Europe and cost twice as many in the U.S., about half of the Europeans who have intermediate and higher 'had cyber banks. This has been compared with less than 15 percent of U.S. banks. But there are major changes within Europe. France and Spain have six times as many cyber banks higher than the United Kingdom had, even though they have had half the number of consumers. Almost all bank offices in the Netherlands were classified as higher. You could see this as an unexploited opportunity for British banks, or as a grave threat. Four years ago - an eon in Internet time - Forrester Research Group published a report which forecast the death of Financial institutions which lacked an Internet strategy. Like the later Bluesky report, Forrester's work emphasised the need for positive and quick action. By now all banks must have heard the warning. But hearing and reacting are two very different things. A defined strategy and quick implementation are both essential. However, another survey, by Ernst & Young, looked at 100 leading banks in two dozen countries and found an amazing contrast. The banks expected the millennium to start spending as much on Establishing online presence as they currently spend on branch networks. Yet almost all these banks - 96% - did not expect online transactions to add a penny to their revenues. Moreover, only a third of European banks, and just over a half of U.S. ones, believed that Web-banking would help them to retain existing customers.

The conservatism of traditional banks in the strategies of their competitors do not reflect outsiders - or supported by the last experience. Sunny Bank pays the United Kingdom, the arm of Sun Life of Canada. In the first six weeks of site operations, has Sonnenbank übernommen £ 11 million in customer deposits. The company hopes to generate about half of its revenues through the Internet within five years. Sun breaks down the strategy of banking close to business needs with technology is a win, both internal benefits (through improved knowledge management as information systems), and) external benefits (through improved customer knowledge and great interaction. Woolwich is another building society, which is transformed into a bank, which, like the Halifax, moved quickly and adventurous in the new digital world. Its Open Plan offers customers a personalized relationship that go far beyond, the banking standard. This has adjusted any time any place 'service operated via the Internet, call centers and traditional branches. Open Plan provides advice and planning, accessibility, and integrated financial services, which run from investment advice to Internet banking.

These state-of-the-art users are approaching the Holy Grail of modern marketing - dealing with mass market customers (Woolwich has 4 million) as individuals, and doing so economically and swiftly. The overriding objectives are to attract new customers, retain existing ones, and motivate them to give more and more of their financial business to the company. That hinges on being truly innovative and forward-looking, in other words, getting there first. The latecomers, however large they are, could find that the richest opportunities have been seized by others. The e-challenge is essentially the same as that faced by other industries. Few, however, have the characteristics that make banks so eminently suitable for Web transactions: and which must make the 'invisible banking store' dominant early in the New Millennium. Marble halls are out: digital technology - cheaper, faster, accessible from anywhere and at any time - is in, for keeps. 

There is a logical sequence to build a business, whether online or offline. There are certain things that need to be made to see that your business grows. By following these eight steps of the INSERT, you can attract more customers and want the kind of income you can have. You striding One: Be Sure, based on the targeting you, Before you start any marketing, you have to find your target audience. Does your research and discover who your products or services can help the most. Without a clear understanding of exactly who you are targeting, your marketing can not be effective. Specialization Their approach will help determine your conversion factor. It should make you nervous to think Narrowing your options, but it is the first step in pulling in more long-term customers. Here is another advantage zuengen down your focus: each time a little more of a specialized, you can download more for your services. You striding Two: Understand What You Really Want Emotional and logical when you identify your best target audience, it's time to learn what they really, really wish. What do they dream of perfection? What she keeps waking up at night? There is no point in marketing your products, if you are not sure what your target market wants. Here is a key concept: people buy what they want, not what you think that they need. Get to know your market and you will find making sales much easier.

They stride Three: Repack, What do you offer on the desired outcome, because you know and understand your market so well, the desired outcome that they want to achieve. The closer you get to that desired outcome, the better you will do in business. Wrap your products to that result, so that you always meet the needs of your customers. If you are really tuned into the needs of your target market, You will learn the haste of Geschäftslaufens smoothly. You will need to push and push to stop doing business and see how it all flows together, the needs of a group of people and products that are packaged to take too, need. What's the takeaway? People do not buy because they understand something, they buy because they feel understood. You striding Four: Create an irresistible offer what exactly what you deliver your products, and give the customer must return?

To be effective at marketing, you must be able to answer that question in one sentence. Here's an example: "You have me giving is ten minutes a day and I'll give you the body you always wanted." You want to explain your offer in a compelling way, the people who raise their hands to say "I want this! Work on developing your offer single-rate, it will form the basis of your entire marketing others. You striding Five: Go find your target audience where people do most likely to buy your products, hang out? They gather in online discussion forums? What Publications they read? Which organizations close to them? If you've done good research in the previous steps, you will already know the answers. Now go out there and make your product irresistible to them in the classifieds, talk, comment on forums and whatever way you can, which makes them affordable, attainable. They stride Six: Practice Great sequel that you've done your research, created great products, it has to meet the needs of your target audience, packed and made your offer, where they gather. Maximize all the hard work you already did, you need more evenly. What is the best way is to make sure that happens? By automating and systematizing so much of your continuation as possible. Here's the rule: Keep on and on, and find ways to do it automatically.

They stride Seven: Close the sale, this one is replaced, walked around so often, and that's a shame because it is essential if you want to succeed. Learn how you ask for their business. For some firms, which should mean a personal meeting, and for many others, can All sales processes are automated. Unless money changes hands, you're not really in business. Close does not matter which path you have chosen you, you must give your prospects enough information that they can buy with confidence. Automate that information-sharing as much as you can with web pages, sales letters and brochures to help you spread your swing in less time. You striding Eight: Make Additional deals will be made to the main part of your profits from additional sales to satisfied customers. They have already built a relationship with them and they know that you can be trusted. Create products that you can offer them when you hear more and listen to what solutions they need. These long-term customers give your business stability, and you are not constantly in pursuit of new customers. Learn to make additional offers that will make the difference in whether your business takes. Following the eight steps you incur to provide the path to new customers and earning more income. Keep working through them until you have perfected your products and your offer. You do not automate as many of your methods as you can, and do not forget to contact satisfied customers additional products. By making so you will be on the road to the income you want.

5. Conclusion

eg analysis and discussion of findings with reference to purpose of study, issues from the literature review, practical application and areas for further research. This study follows up a study examining the effectiveness of Internet marketing, which found that only 22.6 per cent of respondents banked online. This study aims to determine respondents' reasons for not banking online, and to develop strategies for banks to get people banking online. A sample of 369 consumers was drawn from two universities in Kwazulu-Natal. Universities were chosen because they are an untapped e-commerce market segment. Employees at universities fit the profile of typical Internet users. Data were collected using a Web-based questionnaire. Statistical analysis revealed that more males used Internet banking than females. Automated telling machine usage was far greater than Internet banking usage. A large percentage of Internet bankers used the service for inter-account transfers and checking balances  statements. Security was the prime issue for those not banking online. Potential customers wanted guaranteed safety and loyalty rewards to get them to bank online. Internet banking has the potential to grow amongst tertiary institution employees.


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