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Management 4322 Professor Chao, Chiang Jin Chung Tina Fogg Marie Desimone Richard Lee Claudia Rubino Francesca Vicari Online Banking (Citibank) INTRODUCTION The use of computers and Internet in today’s society makes life much more convenient for everyone. This case proves the point that online banking as services are becoming more trusted with the increase in popularity. Also, consumers are finding financial services more suitable with Internet banking. Thus, as result, online banking is spreading like wildfire. As the number of consumers using the Internet expands, banks have to keep up with the demand and provide quality products and services online. Along with this, many users of online banking feel a sense of freedom that these new services offer them. Due to some of its benefits, financial services have never been as simple as they are with online banking. One key advantage, among others, is that consumers can access their accounts from any computer with the Internet around the world. However, like anything else, online banking has its disadvantages as well as advantages. LITERATURE REVIEW What is Online Banking? Online banking is just what it sounds like. You access a bank’s web site over the Internet and enter a user ID and password. This gives you access to your account information over a secure server. Service for online banking is available 24 hours a day, seven days a week. You no longer have to rush to the bank at lunchtime or stand in line-ups in the bank or at the ATM, just to find out information about the availability of your funds. While a number of the largest banks have gone to the Web and introduced free online banking to attract new customers and allow existing consumers to manage accounts online, not much else has changed, according to Bankrate.com’s fifth semiannual Checking Account Pricing Study (Buckham). Some online banking services are free while others have a fee. These banks determine rates and fees for online accounts based on where you live. That is why these banks ask customers where they live in one form or another. Each state would have different fees and rates. You would be given the same rates that you would receive if you’d walked into your hometown branch of the same institution. In order to get started with Internet banking, you must have either an IBM compatible or Macintosh computer. You will also need a modem, an Internet browser, and access to the Internet. The recommended browsers include Microsoft Internet Explorer 4.01 or newer, Netscape Communicator 4.7 or Netscape Navigator 4.08 (O’Brien). In the near future it will be possible to access your online banking information from a Palm Organizer or Web TV. The most basic online banking sites let you see account balances, transfer money between accounts, view transaction statements, and pay bills electronically. Some online banking sites let you apply for new accounts and loans, order new checks and stop payments, and many other services. Due to the fact that many people work during banking hours, online banking is a convenient option for them. It is also a great time- saver. For instance, instead of going to each individual bank to find out about their banking information and rates, you can go online and find out about all of that information. Another online banking feature that many customers enjoy is paying for bills online. You would only have to type your payee’s account information one time. Once you instruct your bank to pay a bill, the bank will pay the merchant electronically if possible, or the bank will print and mail a check. Online banking is a great tool for checking your account transactions or figuring out whether a particular check has cleared. Many banks let you download transaction information, saving you several hours of data entry each year. Aside from the advantages and services online banking provides, there are also disadvantages to online banking. Online banking cannot do everything. Some of the disadvantages of online banking are that you need an account with an internet service provider (ISP). There is also an original setup for bill paying and is time consuming, but in the long run it will save you time. Switching banks can also be more cumbersome online than in person. In order to use online banking, the person must have basic computer skills and Internet knowledge, and also must be comfortable using the computer.
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