The advent of the Internet has dramatically changed the way people manage their money, and the methods by which financial management companies, notably banks, do their business. One such change is the development of the online banking system.
Online banking system refers to the management and delivery of core banking services and allied services (marketing and promotion) by assigning a link in the bank’s central network system to connect to an intended client base. The link may be in the form of a web site - virtual bank portal that lets account holders conduct banking-related transactions online, or in the form of an automatic e-mail generation program that sends thousands of electronic statements of account (SOAs), replies to inquiries and standard bank correspondence to many clients at the same time.
Before the Internet became available in 1995, many national banks have attempted to link certain segments of their client base to their active (online) network. An early form of online banking include utilizing telephony systems and cable connections such as cable TV so that select clients can access their accounts remotely. However, this forms of online banking, which was attempted in the 1980s, proved very expensive to the account holders due to interconnection fees and resources needed, and did not gain popularity. Now, with the seamless and affordable connectivity provided by the Internet, the online banking system finally flourished.
Online banking system facilitates banking processes such as conventional bank transactions, and also performs allied banking operations like marketing and promotions and customer service. With this modern banking system, bank businesses are able to expand their operation, level up their customer service efficiency, develop bank brand awareness, and explore potentials to expand their products and earn more profit.