Banking that relies on information technology to

March 4, 2019 Information Technology

Banking has always been an important activity that relies on information technology to acquire, and deliver information to customers. Information Technology is also critical in processing information, it gives way for banks to differentiate their products and service in the market so that people will know and see their products which are offered. Driven by the challenge to expand and provide more service to valued customers, banks approach to deliver their product to the market through the internet. There are many online activities which helped many individual, one of it is the online banking. Online banking started in the 1980s when the definition and the practice of online banking were far more different than what it is today. Online banking serves as a channel to depositors wherein they can have access to account information. This help customers manage their accounts through internet without visiting their calling their telephones or visiting their branch. It is essential to have this new feature of banking services to clients and to maximize their advantages for both clients and service providers.
Globally, New York City was the first place to try online banking services to four major banks namely the Citibank, Chase Manhattan, Chemical Bank, and Manufacturers Hanover, these four banks made home-banking access available to its customers. A year later, Presidential bank became the first bank in the United States that offers customers an access to their accounts online. Through online banking 80% of the United States Banks offers Internet banking. Online banking in the early 2000’s had made huge impact to customers 5% of internet users had conducted bank business online. For the year 2002, 10% of internet users had been conducting online banking business. (Fox, 2002). The convenience and perks of online banking became obvious to customers, the higher interest rates online than with the physical banks, greater access to accounts, and online money transfer.
In the Philippines, banks are working to compete against global banks that are looking to capture the market, given the increasing demand from the consumers to try online banking products and solutions that meet the needs of every individual. There is growing number of Filipino recently engage in online buying and selling by using the online banking for payments and other business transaction. Online banking in the Philippines grew by 39%. There are top banks in the country that provides excellent service in online banking, The online banking facility Ayala-owned Bank of the Philippines Islands (BPI) topped the list of websites most visited by filipinos (GMA, 2011).
Locally, Davao City’s economy has been steadily growing over the years, Based on income, Davao City is the biggest local economy in Southern Philippines and is consistently part of the top 5 local economies in the whole country, the only city outside of Metro Manila (Quilantang, 2016). With the level of income increasing and people demanding for easy access in making transactions at the bank, online banking had made banking transactions more accessible to the people of Davao. According to the study conducted by Quilantang probability estimation reveals that a depositor ages around 30 years old, with monthly income of P30,000, and expresses high degree of convenience on the services of a bank has 19% probability of becoming an online banking user, while a 35- year old depositor with income of P40,000 and has high convenience on the services of the bank has 23% probability of using online banking. Through online banking everyone can enjoy the convenience of initiating investment transaction through the internet anytime, anywhere. The study will be useful for Davao Commercial banks in order to see the impacts of online banking to customers. It could also help customer’s understanding of what attitude has towards online banking and what should actions take in order to benefit from the opportunities of the banks and on how to overcome the challenges of the banks. Another is the researchers will let the bankers notice about the problems right now in order to obtain the intended customers satisfaction as this service can be said it is at infant stage in the country. Additional, in this study it can be helpful to other researchers who finds references who wants to study the related area and it could serve as a reading material for anyone who is interested. The study can be used by management to improve on customer policy toward satisfaction as it looks at aspects that aid in the reduction of customer complaints, ensure the ease of access to services rendered so that the customer expectations are always met or exceeded. This will lead to better relations with the customers and boost company performance as well. Furthermore, this study also provides information to allow banks to make significance improvements so as to meet customers’ expectation towards their online banking portals. All the service providers should keep the importance of customer satisfaction in mind as business can only be expanded when customers are satisfied with the services offered.


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