Finance Banking

Online Retail Banking


The effect of technological advancement has been quite prominent in the banking industry. Online Banking has flourished. Almost all banks have online banking available, but more so than anywhere, retail banking has adopted online banking to the greatest extent. This article will look into what retail banking is, and how it has made use of online banking for its advantage.


It was during the early 1980’s when online banking became available. At that time four banks provided home based banking services to their customers. Banks set up electronic accounts for all the customers that opted for online banking. This was done through a dial-up network. Customers had to pay a monthly fee. In return they could maintain electronic checkbooks, manage funds and make electronic payments to various merchants. But during those times public adaption was quite low. Many retail banks had to shut down their online banking wings because they could not get enough subscribers to break even. Main reason for this was the lack of technological infrastructure available.


Nowadays online banking is a booming industry. It is considered as a norm for ever bank to operate online as well. There are some banks present that operate only online. Retail banking can be defined as a type of banking service that makes transactions directly with the public instead of companies and organizations. The types of benefits that online banking provides are best suited to retail banking as compared to other types of banking. Online banks provide a certain flexibility and convenience to its users. People can manage their accounts; make payments and transactions etc. from the comfort of their homes, offices or universities. With the mainstreaming of cellular internet access, online banking now has even more effectiveness. Anyone who has internet on his mobile phone can make use of online banking services of the fly and from anywhere. Online Banks also have an advantage that they do not need to make physical branches. This saves a lot of expenses.  Traditionally online banks promise benefits like higher interest rates as well. The technological systems are much more advanced. The whole process of online banking has been made much more streamlined and quicker. Better software, hardware and internet bandwidth are some of the contributing factors. Some consider online banking to be much more secure, as there is less of a risk of robberies which happen during the commute to the bank.

Tips and comments

Anyone who requires greater access to his/her bank account and wants to have control over transactions 24/7 then online banking is the way to go for him. All that is required is an internet connection and all of your bank account related dealings can be done easily. The nature of retail banking suits online banking, as its clients are many different individuals. This also means that there will be many irregular, small transactions made. To visit the bank every time would not only be a waste of time, but a waste of money too. Online Banking should save you of any such hassle.

By Sidra Rana, published at 12/31/2011
   Rating: 4/5 (10 votes)
Online Retail Banking. 4 of 5 based on 10 votes.


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