One of the trends in banking is the transition from traditional to electronic banking. The development of electronic banking means dramatically change of the banks participation in business and generates new development opportunities for the banking system.
Electronic banking is not any additional field of banking, and the new way for its implementation is by means of electronic equipment and electronic networks in real time.
The idea for the creation of electronic banks has appeared in USA coincidence. One reason is the existing limit of detection by banks to their subsidiaries in other States. Specific U.S. high labor migration, which is why banks and their customers suffer certain losses. Banks lose their customers and clients lose all those privileges which they acquired in banks as regular customers. Virtual Bank enables clients to manage their accounts in real time from any state bank and saving costs for its services. For this reason, virtual banks often offer their customers a higher interest rate on deposits than conventional banks. That is why many of our clients translate their deposits from traditional virtual banks. Following the accumulation of specific experience in the establishment and operation of virtual banks in the market of banking services occurs very specific “internal” competition between traditional bank itself and its virtual branch. Subsidiaries virtual branch began to attract more clients from the parent bank, which in turn prompted banks to move towards the provision of new high-tech banking services, including in real time. The only “offices” virtual banks have their Web sites.
Different types of communication began to be used by the banks back in the 80s of last century. In 1983 was first implemented remote banking system Homelink through the joint participation of the Bank of Scotland and the telecommunications company British Telecom and tested by the construction company Nottingham Building Society1. In those years the optimistic forecasts for the implementation of the Internet and special electronic banking networks seem unreal. Has already started to create systems for remote banking (remote banking), receiving the name Banking home (home-banking). Remote banking system that is based entirely on electronic media and networks, is actually the e-banking, which covers only the part of banking activity that is related to the work of the bank’s clients (ie This is a virtual system “Bank – Client”) and includes electronic processing of internal documents and e-services for interbank payments. There are currently two models of distributed electronic banking:
- a) fully virtual banks, operating in a global, local or private electronic network and not having a ‘physical’ offices;
- b) traditional banks that are among the traditional and electronic banking services, called. channel banks.
The banking system has only multichannel commercial banks. Studies show that 91% of all commercial banks have a Web site, and 77% – provide customers with electronic banking services. Competition between these two models of electronic banking has a decisive influence on the development of the banking sector as a whole. So far, traditional banks earn in the competitive struggle for a strong starting positions:
- a) The experience of working with clients;
- b) created over many years of prestige;
- c) reliable ratings of these banks in the banking system.
Among the economic consequences for the banking system in the development of electronic banking are the most basic:
1) intensification of competition in the banking sector;
2) shift of the entire banking system to the practical implementation of the concept of multi-channel (integrated) model of the bank;
3) the possibility of diversification of banking operations;
4) banks to attract the most promising customers who get the opportunity to manage their finances and invest most profitably in real time;
5) increasing the concentration of capital in the banking sector;
6) providing real time to the globalization of banking;
7) international legalization of electronic banking;
The consolidation of the banking sector to non-contractors, who began to provide financial services in the field of electronic payment systems.