statements, check-book request, stop payment instructions, Electronic bill payment (EBP) etc. In Post Y2K era banks aggressively adopted variousservices such as Electronic Bill Presentment and payment (EBPP),customized reporting, account aggregation over multiple bank accounts,Investment banking, also portfolio / investment management,comprehensive money management, and trade finance etc. Y2k was also anera when few “Internet only” banks were established, and out of which theseonly Japanese have truly survived by now. Rest of the world is struggling tokeep this “internet only” concept alive.In the present regime of 2006 and beyond, the banks are concentrating ontargeting the incremental service-level in online banking value-chain e.g.developing creative ways of countering security threats, targetingcomprehensive supply chain management for entire life cycle of atransaction utilizing straight through processing (STP) , aligning internet banking with multiple channels to offer the best-in-breed technologicalupgrades to the customer including Electronic Fund Transfer (EFT) / bulk transfers using RTGS, mobile banking services etc, Targeting Internet banking as a medium to generate new business and attracting either offlineor fresh customer through effective ways of cross-selling, establishing cross border services for various corporate as well as consumer segment. InternetBanking is also been used as mode to create profile driven marketingcampaign for various banking products.
Research suggesting Internet Banking growth story
As per Pew Internet & American Life Project in 2005, around 53million Americans conduct majority of their banking online. This isapproximately a quarter of all adults and this has risen over 47% since2002.
Forrester predicts this online number to reach 74 Million household inUSA by 2011. The major factor promoting this number is GenerationY (those born after say 1980), as this segment of online banking isexpected to grow by 136% in next 5 years timeframe. EBPP isexpected to be a major driver for achieving this envisaged growth of e-banking volumes.