In today’s world e commerce is fast expanding its presence and Amazon, Flip Kart, Snap deal etc are playing a major role. As the potential of e commerce is growing more and more companies wants to get their hands on it. The banks that have nothing to do with e commerce retailing directly are now looking into it too. The banks who only act as a medium for transfer of money in e commerce are now looking into encouraging their customers to shop through banks website. Special discounts are been given to the customers to support it. Banks are walking into customers mind through user friendly apps
Banks have an important reason to pursue the conduct of business on-line. If they fail to respond to the opportunities offered by the technological advances of high-speed Internet and seem less connectivity, they could be consigned to a largely secondary role as commerce shifts toward electronics over time. In that event, they would process payments for buyers and sellers engaged in e-commerce only and would have little chance to engage independently with buyers and sellers or to offer their own products in the electronic marketplace. Long gone are the days when banks occasionally set up a website but actual banking transactions, took place at the branch, through the mail, by telephone, or over the automated teller machine (ATM) network.
Banks have not just begun to use the Internet as a supplementary channel for delivering traditional products to consumers and businesses, but are also racing to find new ways on how they might expand their current service offerings to include some products designed exclusively for e-commerce. Tripathi feels regulations have to evolve in response to the disruption; else banks will become irrelevant over time. How much to allow and how slowly are questions that need to be thought of and addressed. Regulations already permit corporate to set up payment banks.
Many banks have established transaction web sites where individuals and businesses can perform many basic banking functions such as checking balances, transferring funds, or applying for credit cards. A number of banks are launching special Internet portals, “supersites” where many sellers will display their product offerings and large numbers of buyers will visit. Indeed, mobile wallet companies which are banking on their ease of use to drive adoption may suddenly find a new rival in banks that are shedding their stodgy image and behaving more like startups with little time to lose.
