The term `virtual banking'
is associated with electronic delivery of financial services. Customers need not
interact with bank staff across the counter when carrying out
online transactions. Customers can use electronic delivery channels
and instruments like credit cards, telebanking, ATMs, retail
Electronic Fund Transfer (EFT) and electronic clearing services
to carry out their transactions.
Security First Network Bank, Atlanta, Georgia, US,
was the first bank to go online. The bank started
its operations on October 18, 1995. The growth of
virtual economies has paved the way to offer significant business
opportunity for banks to meet the demands of customers. Some of
the banks are now offering a unique set of new, exciting as well
as trustworthy and secure services to the users of virtual world.
Virtual banks, with speed, efficiency and effectiveness, have created
a new banking environment and have brought about
major changes in providing financial services. Virtual banks, all
over the world, are designing new service channels that are
completely safe, secure and function effectively.
Customers can easily access banks through these
channels. Virtual banking has become a powerful `value-added' tool
and focal point for the banks to attract and retain customers
globally.
Indian banking industry is witnessing an unprecedented
competition from other countries. To win in the competition and to
lure more customers, banks are offering a plethora of global
financial services. Services, such as 24x7 hours banking, service at
door steps, telephone banking, Internet banking, etc., are being offered
by the banks. Today, a large percentage of the transactions are
not taking in the physical premises of the bank. This clearly
indicates the growth of `virtual' banks. The initial success of Internet
banking services provided by traditional banks led to the
development of `Internet-only banks' or `virtual banks'. Though the
aim of these banks is to satisfy customers, there is a need to
understand customer's awareness, perception and the level of
satisfaction. Virtual banking services offered by Indian private banks
include Automated Teller Machine (ATM), telephone
banking, Internet banking and Integrated Voice Response System. |
