The Infosys Labs research blog tracks trends in technology with a focus on applied research in Information and Communication Technology (ICT)

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Is online banking going to be easy for banks to manage?

Banking has changed a lot with the advent of Internet banking as a channel for reaching customers. Customers are seeking more comfort in accessing banking facilities as well expect their banks to deliver value added services through channels like Internet banking. With customers expecting more return on investments, many banks are offering pure internet banking as a solution which gives more earnings to the customer. The overall banking landscape is changing as banks opt to provide pure internet banking facilities as part of their strategy to meet customer demands along with existing regular internet banking facility tied up to their other channels - branches, mobile banking and phone banking. How to make internet banking (pure and regular) more profitable for banks and competitively attractive?


Not stopping there, retail banking over the net has changed with the mushrooming of many online banking applications which help customers in managing multiple bank accounts, account aggregation, manage loans, categorize transactions, plan spending and earning, analyze finance pattern, help in switching banks and in a nutshell manage finance effectively. Few of the famous online banking applications include Xero, Wesabe, Mint, Money Manager, Expensr, and Smarty Pig. How banks can leverage these online applications to support them to reach customers effectively?


The answer to these questions lie in how banking firms are banking upon these online applications for online accounting and financial management services which add value to customers - in short how to leverage cloud computing for success in performance of internet banking. Internet banking is not simply funds transfer, bill payment and other vanilla services any more; but having an all encompassed internet banking application on their own is also out of scope for banks. These things make it is necessary for banks to take the services of online applications through cloud computing.


It will become essential to understand two important aspects to become competitively ahead in online banking: 1) Classifying online banking cloud based applications available and how to leverage these applications for providing customer focused functionalities and 2) Is it possible to have a 'Composite' banking application services/services provider who shall provide basic banking functionalities as well value added functionalities through the cloud wherein the service provider shall become the internet banking face for all competing banks.


Banking is going to be easy for customers but not for banks/service providers/application developers unless they leverage technology and adopt themselves to become a superior value provider!

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