Virtual Banking

Virtual banking has been doing all our reconciliation of our accounts through online or by the internet. Traditional banking means that going physically towards bank when we have the banking requirement, such as the deposit. There we get the paper printout of our accounts on monthly basis which we are use for checking our out flow of the funds against for making sure that bank has not made the mistake. However with the virtual banking we call up our accounts anytime we want from the home. Therefore we may watch our bank activity all the days when you want to. We may know on daily basis what has been happening. What the checks have been cleared & if or not all is quite well. We can also save the paper & it saves the trees. Variations in the Technological Knowledge History of the automation of the banking records shifts in Information Technologyinfrastructure from the mainframe, to the Personal Computers, to the client or server, before emergence of an Internet. In past, networking of the branches has been largely dependent on wide area network architecture. The Traditional banking systems, have conducted with uses of the information technologies centring on the electronic data interchange over the valueadded networks which have been established through the vendors for delivering the services over & above these of the common carriers which have been licensed through the governments for providing the financial services to general public. In comparison with Internet, Value Added Networks gives the high security characteristics & quarantined bandwidths. The important aspect of the banking systems has been a mechanism to conduct the secure transactions. Traditional banking needs a lot of interaction with the physical facilities, processes & the payments. In this regard, the customers & the banks generally require of

establishing the physical presence in the geographical location so as to carry out the transactions there only. In comparison to that the virtual banking is the way of the online transaction through Internet. It builds the alternative channel through that the customers may easily make the transaction anytime anywhere & reduce its requirements for the financial intermediaries. Given an open nature of the virtual banking, security has been likely to emerge as a biggest concern in between the consumers (Cheung, 2003). Thus in virtual banking environment, consumers may have the complete access to the desired financial information, & requirements no longer for relying on service personnel in branch office. Variations in the Business Model Term business model has been used for describing major components of the provided banking business. Traditional banking requirements are needed for establishing the physical presence in the geographical location so as to serve the local customers here. However the customers may do the virtual banking over Internet at any point of time at any equipped locations, virtual banking also eliminates the physical & the geographic boundaries & time limitations of the traditional banking. It provides the customers with the efficient time savings & the high speed and also the financial services online. Additionally the consumers must be able for accessing the rich financial information & the services through Internet. In comparison to the traditional banking, virtual banking is quite cheaper & it handles the transaction process automatically, without weighed down through the heavy documents. Therefore use of the virtual banking has potential to order of the magnitude reductions towards cost of the processing & transmitting the information (Emmon, 1998). Additionally Internet has the lower networking fees, the application development costs & the free Internet costs. Virtual banking also gives the self-services.

Impact of Virtual Banking Impact of virtual banking consists of 2 aspects and change of the technological knowledge & the re-configuration of business models. First the Internet technology has overturned Information Technology infrastructure of the branch dependent networking & triggered changes in knowledge of the networking, the data transmission, the computing platform, the interoperability & also the system design. Virtual banking has also changed the traditional payment modes, the physical transaction processes, the service delivery channels, & also the security schema in the virtual environment. Lastly informational, the customized, & also the self-service offerings enhance available functions of the traditional banking. To conclude, virtual banking might reap the profits from successful exploitation of synergies of the innovative financial services & proper marketing & also the pricing strategies through the virtual channel. However the traditional banking is the technique of the person to person service delivery over a counter. It also sees customer as the passive participants in transaction process till time of transaction. Virtual banking services have been promising the customized services tailored to consumers requirements. These services delivery consider consumers as the active participant at all the stages of transaction process & as a co-producer of the financial products & the service offerings. In comparison to traditional banking services that focus just on the articulated requirements as stated through the consumers, or banks perception of the consumers demands, the customized services have focused on both the articulated & the un-articulated requirements through guiding the consumers profiles & the usage patterns.