E-Commerce: Dutsche Bank Case - Essay Example

? E-Commerce E-Commerce Communication is very important in society. This is because it helps to pass information and thus enableindividuals to understand each other. There are numerous forms of communication, both traditional and modern. The modern forms of communication are technological and began with the invention of the telephone by Alexander Graham, who devised the telephone, which has been the base for present communication. Since then, communication has been evolving in terms of technology with the changing times. Advances in technology are of great impact to the world, especially in business. Organizations use technologically improved communication means and the most notable one is the Internet. The Internet is a collection of universal interconnected computer networks that use common software, used for mailing services, and online communication (Seker, 2007). The recognition of internet all over the world has lead to the development of e-commerce, which is the exchange of goods and services from manufacturers directly to consumers over the internet. This direct link between the manufacturers and consumers has led to the disintermediation and hence the reduction in the final cost of a product. In this regard, this paper will describe a company that uses the Internet to communicate directly with its clients. The company to be addressed is Dutsche Bank, located in China. Additionally, the paper will describe the gains from using a direct-to-consumer internet strategy. Last, there will be a discussion of the disadvantages for the manufacturer as well as the consumer under this strategy. Deutsche bank has many branches and all of them have embraced the use of online banking to ensure they keep up with the advancing technology. The bank has been able to attract many clients with the many e-banking services it is offering as will be described in the paper. E-Banking in the Deutsche Bank Internet banking may be described as the deployment over the internet of wholesale as well as retail banking services. It entails individual as well as corporate customers, and involves payments and settlements, bank transfers, documentary collections and credits, card business, lending of both corporate and household among others (Deutsche Bank, 2011). E-banking did not start smoothly but it is now emerging as a rule instead of an exception. Some customers have feared to bank using the Internet because of insecurity but it is forecasted that in a period of two years, most individuals with Internet at home will bank online. Online banking has offered a solution to the long queues in banks and long distances that were covered for a client to get to their branches several years ago. The Internet has brought convenience in management of finances. This is evident in the use of automated teller machines and credit cards. This is why the Deutsche bank has adopted e-banking (Deutsche Bank, 2011). Deutsche bank claim that by 2020, shift to e-banking will touch on 60% of the European Union’s community. Security experts though warn concerning the privacy of data because of the presence of Internet hackers. However, Deutsche and other banks are ready to venture into online business but with strategic measures to fight insecurity. Deutsche bank has integrated online banking and offers numerous services (Deutsche Bank, 2011). To begin with, a client can view their bank accounts, which has many details pertaining to all the transactions one has made. For instance, a client can track their balances on the spot following every transaction and becomes aware of the balance that can be withdrawn. Additionally, one can view as well as download their desired accounts statements at any time. Similarly, details can be retrieved for all the transactions carried out by a mere click on the particulars of transactions (Deutsche Bank, 2011). Second, one can view the amount of fixed deposit in their accounts. For example, a client can obtain the schedule of deposits on their accounts of fixed deposits. Also, a person can view the rate of interest, the date as well as amount of maturity. Third, e-banking offers the ability to view loan accounts. An individual can view as well as download details of their transaction on their loan accounts. In Deutsche e-banking, the clients can access their account details like interest rate, sanction and disbursed amounts, and available amount among others. Additionally, of it provides a provision for obtaining current payment details as well as the next date of payment (Deutsche Bank, 2011). Fourth, the e-banking provided by Deutsche allows customers to view their investments. For instance, one can obtain a summary with views of all their investment holdings even from other investment firms. A full breakdown of the investment assortment and performance tracking are as well easily accessible through e-banking. Additionally, switching of joint funds, buying and redeeming of funds can happen by a mere click. Last, Deutsche e-banking allow customers to view their Demat account holdings. In this, the clients invest in Equities as well as F & O by consulting Sharekhan Ltd (Deutsche Bank, 2011). E-Bill Payments in Deustche Bank This is facility for paying bills such as utility and insurance premiums among others. One pays through their savings or current accounts. The bills are payable depending on the amount of money in the operative account. The method is easy and fast and enables individuals to pay their bills on time and at their comfort. The AutoPay feature is also available, which can be set to auto-debit accounts for the purpose of payment against bills issued by the biller (Deutsche Bank, 2011). The bank online billing also include tax payment either directly from the current or saving account. Deustche provide the service by collaborating with IDBI bank. These tax payments include those of income, advance, and TDS among others. Deutsche bank allows clients to make online purchases using its operative account at numerous merchant websites with the db directdebit. The client only requires recalling his or her login details as well as transaction passwords. The db direct debit supports online purchases ranging from payment of bills to online shopping. One also can loan EMIs using the db direct debit. The db quickpay offers one-stop resolution to cater for utility payments, recharging mobile phones, insurance premia, card dues payments without registration hassles. Thus Deutsche bank offers a range of payment choices under a single umbrella service (Deutsche Bank, 2011). Online Fund Transfers from Deutsche Bank Accounts Deutsche bank through online banking has given its customers an opportunity to transfer funds to other bank accounts and to Deutsche bank account as well in more than 250 cities in India. Customers have the freedom to select from the following three types of funds transfers; Self account Transfer whereby a client to the bank can transfer finances to any of their accounts within Deutsche bank instantly. The second method of finances transfer is one whereby finances are transferred to someone else’s account with Deustche bank and this form of transfer is referred to as the third party transfer. The last mode of funds transfers is the transfer of funds to other banks other than Deustche bank, which is facilitated by finance transfers using RTGS and NEFT amenities to bank accounts of other banks (Deutsche Bank, 2011). In the process of external finance transfer, a client logs online to db online banking and selects ‘Transfer Funds’ after which they provide their bank details that is their banks, bank branch, and the city of location of the bank or use the IFSC code to register a beneficiary or payee accounts, after which personal details like the payee name, account number, and account type are provided and followed by confirmation of the transactions’ passwords and account number. Upon registration, the client selects payment option and automatically depending on the branch bank chosen and the time the transaction was carried out as well the amount of finances to be transferred, the system instantly gives the client both NEFT and RTGS or one of them (Deutsche Bank, 2011). In Deutsche Bank online finance transfers, clients have the option of instantly initiation of funds transfer or program the transfers for a later day .Clients can plan for Repetitive intermittent payments by a single order (Deutsche Bank, 2011). Repetitive Payments For all the modes of online financial transfers offered by Deutsche, the bank can put up repetitive payments. In this, a client selects the option of repetitive payment while transferring the funds via internet followed by keying in of the date the payment is meant to start. Additionally, the client indicates the frequency at which the payment will be done followed by the number of payments and finally the submission (Deutsche Bank, 2011). Online Fund Transfers to Deutsche Bank Accounts Deutsche bank through e-banking offers its clients the opportunity to transfer finances from other banks that have the NEFT/RTGS amenities to its accounts. The client follows the following simple steps. First, a client chooses Deutsche bank from a list of other banks followed by the selection of the bank branch and present the IFSC code, which is mentioned on all leafs of the clients’ cheque book and finally present the Deutsche account number (Deutsche Bank, 2011). Value Added Services Online banking in the Deutsche bank for example db online banking offers clients with services that are time and energy saving. For example in the case of any enquiries customers call up the customer care, this saves them the time to make a long drive to the branch. Deutsche account holders can through e-banking view and download statements of their operative and savings accounts as well as the cheque status. They can also forward requests for new check books and demand drafts. Any profile updates on the bank’s clients accounts profiles is done by a mere click (Deutsche Bank, 2011). Management of Client’s Cheques Clients can track the status and details of deposited and issued cheques through the internet. They can view complete details of issued cheques and track their status. Customers to the bank are also able to issue stop cheques orders for numerous cheques and receive messages for confirmatory purposes instantly. Customers forward their requests for new checkbooks through the internet (Deutsche Bank, 2011). db Alerts Deustsche bank clients receive alerts on all financial and non financial transactions such as utility bills and loan EMI on their accounts through emails and SMS’s. They also have the advantage of selecting the alerts that they wish to receive from their account through logging onto their accounts (Deutsche Bank, 2011). Other Services Deutsche e-banking services give the clients the opportunity to place orders for demand drafts through the internet across over 500 locations in the country and as well order for operative and savings accounts physical copy of statements. Updating of customers profile is equally easy for example change of contact information, names etc. The bank has offers exclusively meant for customers. This and other services are all an advantage of e-banking by Deutsche bank. Customers easily monitor the balances their accounts, manage to pay bills with ease, constantly receive alerts once a transaction is done in their accounts which is a strict measure of security, and last but not least it saves on the usage of paper (Deutsche Bank, 2011). Gains of using a Direct-to-consumer Internet Strategy in Deutsche As a result of e-banking, most of the Information and communication Technologies investors have substituted labor in many banks as a result of standardization of usual financial services (Seker, 2007). The customers are able to perform because of the standardization, thus cutting cost on employment of tellers although efficient man power is also required in the ICT investments. There has been a significant impact on Banks with several physical branches. E-banking has enabled banks to cut cost by offering e-banking at a much lower cost. From econometric surveys, it is clear ICT is positively linked with restructuring of firms’ activities. Thus, enabling companies to redefine their organizational boundaries and by so doing gain competitive benefits. Prevalent changes in the bank branches structure is the dual banking combination with which traditional manual bank services can be performed through the internet. Complicated banking services are performed in the bank branches hence taking advantage of the e-banking low costs and enjoy the face-to-face advice from the bank personnel (European Union, 2008). The banking industry has benefited from the Internet in great ways, which has increased transparency, lesser risk of money laundering, access to newer markets and an increase of transaction across the borders (Seker, 2007). Unlike traditional banking where services were available for only five days in a week, and characterized by very long queues and long distances to the bank branches, e-banking has brought with it loads of advantages to the society. Key among them is convenience. Online banking is always available, the bank sites never close all the year through for twenty four hours every day of the week and the services are just a mere click of the mouse away at the comfort of clients (European Union, 2008). E-banking clients have the advantage of ubiquity whereby if a client is out of the state or the country and a money problem happens to arise, he or she simply logs into their online bank and their money problem instantly gets a solution at any time or day .E-banking transactions are very fast, the sites execute transactions and as well confirm them at very fast speed compared to automated teller machines. Efficiency is another key advantage whereby a customer can access as well as manage all of their bank accounts from a single secure site. Online banking is very effective. Most of the banking sites offer important tools that enable clients to easily manage their assets effectively, they include rate alerts, account aggregation, and stock quotes. These sites are well suited with effective managing programs for example Microsoft money and quicken that enable clients to manage their assets (European Union, 2008). Disadvantages of E-banking The start-up of an e-banking account takes time. For a client to register for online banking program, they are required to provide their identification cards and follow the procedures including signing forms at the bank branches. In the case of spouses, whenever they need to view and manage their assets together through the online, one of them may be required to sign a long-lasting power of attorney so as the bank can display all of their assets together. This protocol is time consuming and therefore one of the disadvantages. Online banking is difficult to go about for a first timer (Seker, 2007). An aspiring customer must schedule some time to read the tutorials of e-banking in order to fit in. This learning curve is time consuming but very important. E-banking is very effective and efficient but there are banking site charges. Online programs are periodically upgraded and addition of features in unusual places, which sometimes requires clients to enter account information again. There are a couple of trust issues that clients have with e-banking, the trust is the biggest impediment (Shah & Clarke, 2009). Conclusion With the growth in technology, many companies have embraced the use of the Internet to conduct business. The companies range from manufacturing companies to distributing companies, which include the Deutsche bank. Internet and communication technology has brought great developments in the society. Investment companies and many other businesses have brought their goods and services closer to the people through the internet. E-commerce has proven to be of great advantage both to the companies and customers. E-commerce has enabled manufacturers to cut cost in terms of minimal employment and for the customers; it has saved on time and energy. For instance, in Deutsche bank discussed above, the bank together with its clients has benefited from a direct-to-consumer strategy. This is in terms of both accessibility to services and the availability of the same. E-banking is very convenient in that the banking sites are always accessible twenty four hours and seven days a week by just a mere click of the mouse. Banking also gives the clients the opportunities of managing their investment accounts via online among other activities. Unlike in the traditional banking methods when clients had to visit their bank branches to access their bank accounts for any transactions, get their accounts statements, ICT has made it easier for clients to carry out these transactions at their comforts. E-banking is very advantageous but at some point it cuts on job opportunities for bank tellers but on the other hand creates jobs for the ICT departments. E-banking is very convenient, but it is faced by the challenge of insecurity from internet hackers of the bank software as well as the credit cards theft. There is dire need of proper security innovations to save customers the agony of hackers, which can be obtained through ICT innovations. Thus, advance in technology, particularly the Internet has brought about immense developments in all sectors of life. References Deutsche Bank. (2011). db OnlineBanking. Retrieved from http://www.deutschebank.co.in/online_banking.html European Union. (2008). ICT and e-Business Impact in the Banking Industry. Retrieved from http://ec.europa.eu/enterprise/archives/e-business- watch/studies/sectors/banking/documents/Study_06-2008_Banking.pdf Seker, Y. (2007). What effects does corporate governance have on the banking sector? Germany: GRIN Verlag Shah, M., Clarke, S. (2009). E-banking management: Issues, solutions, and strategies.USA: Information Science Reference Read More