E-Commerce With Special Reference to E-Banking

Electronic commerce involves a wide range of activities. The goal of electronic commerce is to improve the way in which business is conducted, through technology. This could be as simple as establishing a computer-mediated relationship between consumer and business, between business and supplier, or between supplier and manufacturer. It could involve automation of existing business systems, such as transaction or manufacturing processes. On the web, electronic commerce often means marketing, and online sales. Behind this though is a vast range of activities and technologies, powered by back-office systems. Electronic commerce is more than just sales. Initially, the Indian banking system was domestically oriented at the time of nationalization in 1969. National policy objectives where the guiding force and banks were primarily involved in mobilizing domestic savings, lending funds to specific sectors of the economy and raising resources for financing public deficits. Technology in Indian banking has evolved substantially from the days of back office automation today's online, centralized and integrated solutions. Once cannot think of ATM, Internet, mobile and phone banking or call centre services without the help of technology? However, the irony is that most of those products have more of technology and less of banking. Let us look of how banking has changed as a business over the last one decade. This paper begins with the definition of ebanking, Internet Banking, Mobile banking, ATMs, Debit card and Credit card and electronic fund transfer, anywhere banking and product and services. E-banking is a mix of services which include Internet banking, Mobile banking, ATM Kiosks, Fund Transfer System, Real Time Gross Settlement, Credit/Debit/Smart/Kisan Cards, Cash management services, and Data warehousing, Operational data for MIS and Customer Relationship Management. Latest innovations in technology like broadband transmission, internet access via mobiles (GSM) and Web TV will further provide impetus to digital revolution. Further, banks are looking forward to scan the image of a cheque which can be zapped to another bank, into the depository and back to customer's bank. Banking transactions can be carried out 24 hours a day using these methods. In fact concept of anytime, anywhere banking is making it easy for customers to access their money more conveniently. It has been established that increasing the role of technology in a service organization can serve to reduce costs and often improve service reliability. New information technologies and emerging business forces have triggered a new wave of financial innovation electronic banking (e-banking). This study utilizes an innovation model to analyze the impact of e-banking on the incumbent banks. The results indicate that the nature of e-banking innovation is disruptive, leading to drastic changes in both technological knowledge and business model. We further identify eight core capabilities that are necessary for the banks to cope with the change, each appearing to address either technical or business aspects of e-banking transformation. The findings have the potential to contribute to the understanding of impacts occurring in the change associated with e-banking and offer rich insights for the incumbent banks to exploit ebanking opportunities. KeywordsE-banking, bricks-and-mortar banking, core capabilities, innovate.