Why Banks Want to Participate in E-Commerce
Wireless technologies, globalization and wireless collaborations have led to competition in the market. As a consequence, commercial or public banks want to adopt the use of e-commerce products and services in their delivery of services to their valuable customers.
Today, thousands of banks have already adopted the use of e-commerce in their services. However, many people are not taking significant advantage of this innovative collaboration.
Many research studies have also been carried out regarding the participation of commercial banks in e-commerce.
In recent studies, it was revealed that despite using a meaningful and simple structure of adoption of e-commerce, many banks face various challenges in adopting the use of e-commerce in their products and services. A similar study in Kenya showed that the mean of online banking in Kenya was as high as 4.43 despite the fact that they do not use e-commerce as much.
In fact, e-commerce is one of the rising trends in the banking world.
E-Commerce Banking is a Thing
E-commerce in banking generally refers to a commercial activity that deals in trading services and goods through an electronic communication medium. The general activities of e-commerce in banking might include informational communication, payment management, trading and negotiations of financial instruments and transport management.
E-commerce in banking is a part of the electronic banking business and the utmost reason why banks want to participate in E-commerce is that it generates enough profit and revenue. E-commerce, in general, has improved business processes. While banks are currently facing e-communication challenges, it is crucial for them to participate in e-commerce for smooth banking processes.
Reasons Why Banks Want to Participate in E-Commerce
Here are some of the reasons why commercial and public banks want to actively participate in e-commerce to gain e-commerce services and products for their banking processes:
Improved Customer Service
Customer service is important to any business – including banks where the main motive is to gain revenue out of safe-keeping the money of the public. Banks are generally ranked according to their services and customer services. For instance, when a bank entails cutting-edge technology for quick banking processes, it is likely to be more approachable by the public. Great customer service matters when it comes to banking and handling the financial matters of the public.
However, e-commerce upgrades or improves the customer service of the banks,
the main reason why banks want to actively participate in e-commerce.
E-commerce improves the payment management systems, information communication system, trading, and negotiation system, financial instruments and transport management system of a bank. With these services improving, the customers and consumers will have great experience with the bank. It would not only improve the internal business processes but customer service of the bank as well.
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