Online banking might be just evolving. Is online banking just another channel to reach out to customers? Is it just a strategy to generate volumes? Is it a tool for cost-reduction? Banks need to answer all these questions before plunging into e-banking. That should help them chisel out a suitable e-banking strategy.Having sorted that out, banks need to invest in an open and scalable technology. And then banks should work out alliances for integrating all possible channels to make optimum use of infrastructure. Successful e-banking also involves beefing up back-office systems and having employees with the right e-orientation.
Alongside, clear regulations governing e-payment gateways, digital signatures, e-cash payments and security issues should be put in place. The Information Technology Bill should accommodate these concerns and banking regulations should be suitably amended to take care of future developments.
It is necessary to think long, if online banking is to have a hitch-less organic growth.