ROLE OF ONLINE BANKING AND SOCIETY

Internet banking enables customers to save time, take control of their personal finances and even help the environment by opting to receive electronic statements. For Internet banking users, online banking services are the third most important driver of financial institution selection, falling just behind rates/fees and customer service. These days, its not good enough to simply offer online banking services. However, To maintain existing customers and attract new ones, financial institutions need to keep their offerings up to date with the latest features. Online banking doesnt just appeal to the young and the hip; it appeals to the more educated and affluent segments of the population as well. Eighty-six percent of individuals with incomes over $75,000 have used Internet banking and 62 percent of these users have done online banking in the last seven days. Online bankers fit the profile of customers that financial institutions want to attract. In addition to their appeal as consumers of finance services, they are also systematically easier to serve.

The evolution of electronic banking started from the use of

automatic teller machines (ATM) and has passed through telephone banking, direct bill payment, electronic fund transfer and the revolutionary online banking (Alter, 2002). The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted that among all the categories, online banking is the future of electronic financial transactions. The rise in the ecommerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life (Papers4you.com, 2006). According to the latest official figures from the Office of National Statistics (ONS, 2006) indicate that subscriptions to the internet has grown more than 50% from 15 million in 2000 to 35 million in 2005 in the UK. It has also been estimated that 60% of the population in the UK use internet in their daily lives......

The fundamental shift towards the involvement of the customer in the financial service provision
with the help of technology especially internet has helped in reduce costs of financial institutions as well as helped client to use the service at anytime and from virtually anywhere with access to an internet connection. According to theorists (Walfried et al., 2005) customer evaluation of the electronic services is influenced by attributions of success and failure in inter personal service situations. The use of electronic banking has removed the banking personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. Although the use of E-banking is provided for the benefit of the customers but these changes require increased work or involvement on the part of customers. These and other factors might be seen as lesser service provided in terms of customer service. But these assumptions would be wrong if the customer knows the value of using the electronic service. The world is changing at a staggering rate and technology is considered to be the key

driver for these changes around us (Papers4you.com, 2006). An analysis of technology and its uses show that it has permeated in almost every aspect of our life. According to Tero et al (2004) many activities are handled electronically due the acceptance of information technology at home as well as at workplace. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions. According to Heikki et al. (2002), the transformation from the traditional banking towards e-banking has been a leap' change.

CONCLUSION:Thus it can be concluded that a fit between task i.e. the banking; technology i.e. the user interface and its reliability; and individuals i.e. the customers and their knowledge about using the service, is the key to successful E-banking services .

LEARNING:-As

we all are aware

about that hard cash banking transaction has its own advantages and disadvantages and online banking too.But the thing is online banking has solution for the disadvantages of hard cash transaction.As in USA 97% people prefer cashless economy.But in India ,society is not so flexible.Therefore,the online banking should made applicable entirely for the growth of society and by the support of society.