Electronic Commerce in Banking Sector

Prepared by :-Jayesh Roll no:-37

E-COMMERCE
E-commerce stands for electronic commerce and pertains to trading in goods and services through the electronic medium, i.e. the Internet or phone. On the Internet, it pertains to a website, which sells products or services directly from the site using a shopping cart or shopping basket system and allows credit card payments. Ecommerce involves paperless transactions and usage of EDI (Electronic Data Interchange), electronic mail, bulletin boards, fax transmissions, and electronic fund transfers

Evolution of Web and E-Commerce:

1946 : The first electronic computer, ENIAC, is constructed at the University of Pennsylvania. 1957 : The Soviet Union launches Sputnik, the first artificial satellite. 1970 : First applications of electronic data interchange (EDI). 1983: Internet Activities Board (IAB) is created. 1987: Internet users exceed 10,000. 1988: Internet worm disables 6,000 of 60,000 Internet hosts. A Cornell University graduate student created the worm. Infected computers were connected through ARPAnet and other E-mail networks in the Internet loop. Some of the US's top science and research centers were affected.

 1989:Internet users exceed 100,000 1991: Sir Tim Berners-Lee, working at CERN in Geneva, develops a hypertext system to provide efficient information access. He posts the first computer code of the World Wide Web in a relatively innocuous newsgroup, "alt.hypertext." Later, people refer to the Internet itself as the Web. 1992: World Wide Web released by CERN. 1994: Pizza Hut sells pizza on its website. First Virtual, the first cyber bank, opens. 1997: Inception of business-to-business (B2B) e-commerce. US Postal Service issues electronic postal stamps. 2000: Internet users exceed 360 million. 2011: Internet users tally almost 2 billion. Users in over 200 countries are connected.

Categories of e-commerce
E-commerce, which primarily refers to buying, selling, marketing and servicing of products or services over internet is classified into four distinct categories of electronic commerce can be identified as follows: Business-to-business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Consumer-to-Business (C2B)

Category of e-commerce and its trendy uses in India

Today, E-commerce is an essence in Indian society and it has become an integral part of our daily life. websites providing any number of goods and services, which provide a specific product along with its allied services Multi-product e-commerce Single-product e-commerce Some Indian portals/websites deal in a specialized field, for example:

Automobiles and e-commerce: Online Trading in Stocks & Shares and e-commerceReal estate and e-commerceTravel & tourism and e-commerce-

Continue.
Gifts and e-commerceHobbies and e-commerceMatrimony and e-commerceEmployment and e-commerceOnline Advertisements and e commerce-

Forces fueling E-Commerce

There are three major forces fuelling e-commerce are as follows:-

1. Economic forces
2. Market forces 3. Technology forces

Economic forces
One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure, speedier and more economic electronic transactions with suppliers, lower global information sharing and advertising costs, and cheaper customer service alternatives.

Market forces
Corporations are encouraged to use e-commerce in marketing and promotion activities to capture international markets, both big and small. The Internet is likewise used as a medium for enhanced customer service and support. It is a lot easier for companies to provide their target consumers with more detailed product and service information using the Internet.

Technology forces
The development of ICT (information and communication technology) is a key factor in the growth of ecommerce. For instance, technological advances in digitizing content, compression and the promotion of open systems technology have paved the way for the convergence of communication services into one single platform.

Internet Banking
Internet banking refers to systems that enable bank customers to get access to accounts and general information on bank products and services through the use of the banks web-site, without the intervention or inconvenience of sending letters, faxes, original signatures and telephone confirmations.