Module 3

E-banking is an electronic payment gateway which enables all the customers of a bank to do
banking transactions through their computers without the need to go physically to the bank.

Types of e banking

Banks offer various types of services through electronic banking platforms. These are of three
types:

 Level 1 – This is the basic level of service that banks offer through their websites.
Through this service, the bank offers information about its products and services to
customers. Further, some banks may receive and reply to queries through e-mail too.
 Level 2 – In this level, banks allow their customers to submit instructions or applications
for different services, check their account balance, etc. However, banks do not permit
their customers to do any fund-based transactions on their accounts.
 Level 3 – In the third level, banks allow their customers to operate their accounts for
funds transfer, bill payments, and purchase and redeem securities, etc.

Banking websites are of two types:

1. Informational Websites – These websites offer general information about the

bank and its products and services to customers.

2. Transactional Websites – These websites allow customers to conduct

transactions on the bank’s website. Further, these transactions can range from a
simple retail account balance inquiry to a large business-to-business funds
transfer. The following table lists some common retail and wholesale e-banking
services offered by banks and financial institutions:
Importance of e banking

Banks

1. Lesser transaction costs – electronic transactions are the cheapest modes of

transaction

2. A reduced margin for human error – since the information is relayed

electronically, there is no room for human error

3. Lesser paperwork – digital records reduce paperwork and make the process
easier to handle. Also, it is environment-friendly.

4. Reduced fixed costs – A lesser need for branches which translates into a lower
fixed cost.

5. More loyal customers – since e-banking services are customer-friendly, banks

experience higher loyalty from its customers.

Customers

1. Convenience – a customer can access his account and transact from anywhere
24x7x365.

2. Lower cost per transaction – since the customer does not have to visit the
branch for every transaction, it saves him both time and money.
 3. No geographical barriers – In traditional banking systems, geographical
distances could hamper certain banking transactions. However, with e-banking,
geographical barriers are reduced.

Businesses

1. Account reviews – Business owners and designated staff members can access the
accounts quickly using an online banking interface. This allows them to review
the account activity and also ensure the smooth functioning of the account.

2. Better productivity – Electronic banking improves productivity. It allows the

automation of regular monthly payments and a host of other features to enhance
the productivity of the business.

3. Lower costs – Usually, costs in banking relationships are based on the resources
utilized. If a certain business requires more assistance with wire transfers,
deposits, etc., then the bank charges it higher fees. With online banking, these
expenses are minimized.

4. Lesser errors – Electronic banking helps reduce errors in regular banking

transactions. Bad handwriting, mistaken information, etc. can cause errors which
can prove costly. Also, easy review of the account activity enhances the accuracy
of financial transactions.

5. Reduced fraud – Electronic banking provides a digital footprint for all

employees who have the right to modify banking activities. Therefore, the
business has better visibility into its transactions making it difficult for any
fraudsters to play mischief.
Internet Marketing

Internet marketing, often known as online marketing, uses digital platforms and
methods to promote brands by focusing on their target markets. Internet marketing is not the
only strategy for generating interest in and knowledge about a product. The goal of internet
marketing is to increase traffic to the advertiser's website through a number of methods.

The internet is a channel via which businesses can advertise, communicate with
customers, and make sales. The perfect Internet strategy can play a big role in the effective
marketing and sales of products. The importance of digital marketing for business success
comes from the fact that most businesses and customers have grown extremely reliant on the
internet. Because of this dependency and the value placed on having an online presence, it is
essential for businesses to practice structured internet marketing.

Internet Marketing to Attract New Customers

Paid social media can bring in new clients for your business or product, but before
spending too much money on one social media platform, you should carry out market
research and A/B testing. You also need to keep up a strong SEO presence if you want to
attract new customers. Online marketing strategies can be used to attract new clients

Internet Marketing to Cultivate Brand Loyalties

Through word-of-mouth, customers have a long-controlled brand perception. It has

always been up to the consumers, even while businesses can provide good items, advertise
those things, and make attempts to guide branding in a particular direction. Today, word-of-
mouth is considerably more widespread and has moved online. And it's accessible to
everyone via various social media sites

Internet marketing reaches individuals from various online locations by utilizing their
online activity to establish a connection with a business. The kinds of internet marketing a
company employs will vary depending on its business model, items it sells, target market,
available resources, and other factors.
Types of Internet Marketing

1. Website Content and Design

The method of creating and spreading content in order to bring in and keep customers is
known as content marketing. Instead of focusing on selling, it concentrates on client
communication, which is usually more well-liked.

2. Email Marketing

Email marketing is the process of sending direct marketing communications to consumers via
email in an effort to attract new clients and keep hold of current ones. It's one of the most
economical forms of marketing and may be used to target both a large customer base and a
highly specific one. When customers provide a brand with their email address, the company
can contact them for future marketing initiatives.

3. Social Media

Social media marketing refers to the use of social media websites to promote a business and
its goods and services. It attempts to increase brand recognition, enhance consumer
interaction, build loyalty, and produce leads for sales. Paid advertising and organic marketing
are both components of social media marketing strategy. Organic social media marketing
places a strong emphasis on building a community and establishing relations with customers
in order to pique interest and encourage client loyalty. A paid social media campaign is a
collection of advertisements that can work together to help you use social media to
accomplish a goal or purpose.

4. SEO

SEO is the process of upgrading a website and digital content to increase its organic or
"natural" placement in search rankings. A website is more likely to be viewed by a potential
consumer if it ranks higher in search results. Effective SEO efforts need thorough keyword
research as well as the ability to develop high-quality, useful content utilizing the selected
keywords. Using relevant keywords, link-building, making your website mobile-friendly to
improve user experience, and voice search optimization are some best practices for SEO that
increase conversion rate.

5. Blogging

By adding posts and blogs based around specific targeted keywords, blogging enables you to
improve the SEO of your website. Customers are more likely to find and visit your website as
a result of an online search if you do this. They keep the website up to date and offer chances
for audience engagement. You can link to reliable websites, which increases client loyalty
and increases your audience. The most important benefit of blogging is that it can strengthen
your relationship with your audience. All of this contributes to the generation of more leads
and the expansion of sales.

Online Marketing V/s Offline Marketing

Challenges E-Marketing Faces :-

1. A bad reputation. A lot of money spent on Internet marketing over the past few years was
wasted. One big reason is that the stock market distorted company valuations and rewarded
(or at least failed to penalize) profligate attempts to drive traffic or acquire customers -- even
if only temporarily. Now e-marketing has a bad reputation. And half-baked metrics such as
click-through rates (CTRs) still paint a picture of inefficacy and failure.

2. Marketing integration. Most major marketing efforts utilize multiple channels, on- and
offline. Email, Web advertising, and viral Internet marketing should serve concrete,
measurable objectives as part of an integrated campaign. But coordinating e-marketing with
other marketing efforts is an underdeveloped art. Some companies have successfully linked
the Net to under-the-cap promotions or to teaser campaigns for new product launches. But all
too often the Internet is tacked on at the end of a marketing plan. Determining the strengths
(and weaknesses) of the Net relative to other channels is a project we all should be working
on.

3. E-CRM. Imagine recognizing the needs of customers as they enter your site. Over time,
through implicit and explicit data, you learn about the preferences of each and can serve
customers based on their habits, needs, and purchase drivers. You build deep loyalty, and you
increase your share of your customers' wallets.

4. Privacy. Things have quieted down somewhat since Double Click backed away from its
plans to merge its online data with offline Abacus data. But the industry's privacy issues have
not been sufficiently resolved. Most consumers don't completely trust Web companies and
shy away from offering information about themselves. Companies that collect data
responsibly are exposed to misguided regulation that spammers and scammers invite. Sound
policy, adopted industrywide, is imperative.

5. Traditional advertising dollars. The discrepancy between the amount of time people
spend online and the amount top advertisers spend there is enormous. According to a recent
Morgan Stanley Dean Witter report, the top six advertisers spend less than one percent of
their advertising dollars on the Web. With dot-com ad spending in decline, attracting
traditional advertisers (mainly by addressing the four issues above) is the key to the industry's
growth.
6. E-mail Address Churning As the giants of the Internet continue to scrap it out, a number
of new e-mail projects have been launched to help build and maintain online loyalty.
Facebook announced its vision for the future of messaging for its 500 million users.
Initiatives and incentives to keep e-mail addresses and profiles up to date will be critical. The
trick is to keep the issue top of mind with customers and make it easy for them to update their
profiles.

7. New Layer of E-mail Filtering Gmail's Priority Inbox and Facebook's Social Inbox may
result in mail ending up in folders that are rarely reviewed. This potentially has a knock on
effect on our opening rates and other performance metrics. Ironically, it is those same metrics
that will help us here. We will need to work harder to ensure that our customer is opening,
clicking, sharing, and forwarding our emails; this helps with complex relevancy scoring that
will ensure the message finds its way into a higher priority destination. It spells the end of the
one-way communication and opens up some exciting opportunities for on message
interaction with customers.

8. Increased Integration with Social Networks Many of customers are almost permanently
active on social networks. E-mail must be equipped for instant integration; sharing, liking,
posting, and linking. This is a huge benefit for the brand, getting exposure and endorsements
from trusted friends.

9. Trigger-Based E-mail "Right message, right person, right time" has been a maxim of the
direct marketing industry for years. The challenge is that "right time" now might be a window
of perhaps two minutes. In time, the role of triggerbased e-mail that can engage and interact
after a specific action, perhaps reviewing a promotional Web page, will be increasingly
critical.