E-Commerce Explained

There are many financial services that are transacted online. Most common ones are as follows –

  • Internet Banking – When banking was offline there was a gap between the content and the reach. This gap has been filled up by internet banking. Institutions can now cover a wider audience. Private sector banks have benefitted a lot by introducing Telephone Banking and Home Banking. Customers can now apply for products like loans and insurance without standing in long queues. The time has shifted from basic net banking like NEFT (national electronic funds transfer) and RTGS (real time gross settlement) to economical E-Wallets.
  • E-Brokerage – E brokers provide value and intelligent services to customers which poses a threat to regular brokers. Banks are now getting into tie-up with these e-brokers to expand their customer base. Banks have recorded E-trading business and sourced e-traders so customers can buy or sell stocks online and also pay via the net.
  • Bill Payment – The Electronic Bill Payment (EBP) has been a significant tool to attract customers. Even though it has affected the Cash Management services and the revenue generated by processing in the physical form, it is considered as an integral part of services to customers. There are online platforms for payments and recharge which saves the customers a lot of time and from the hassles of late payments and issuing cheques
  • E-Insurance – The entire insurance process starting from searching for insurance to applying to claim settlement has been digitalized by online insurance companies thereby saving time and efforts of people.
  • E-Delivery of Financial Services – The banks have come up with the delivery of services like checking account status on fund transfer, writing cheques and demand drafts through the internet. Applications for car loan, personal loan and mortgages are all processed online, even bonds and mutual funds are offered through service portal of banks.
  • E-Insurance – The entire insurance process starting from searching for insurance to applying to claim settlement has been digitalized by online insurance companies thereby saving time and efforts of people.
  • E-Delivery of Financial Services – The banks have come up with the delivery of services like checking account status on fund transfer, writing cheques and demand drafts through the internet. Applications for car loan, personal loan and mortgages are all processed online, even bonds and mutual funds are offered through service portal of banks.

Drivers of Online Travel Industry:

  • Booming travel industry – The global economic growth has led to the increase in the incomes of families and hence to more spending on travel.
  • Shift from Desktop to mobile computing – This is one of the most noticeable trends. The general tilt in the population towards mobile usage is having a market impact on the online travel industry and the growing tendency of digital apps to foster consumer to consumer transactions will also influence the industry in the near future.
  • Reduced air travel costs – Expansion in the online travel industry has occurred in tandem with the falling cost per mile of air travel to consumers, as airlines have revamped their fleets with lighter, more fuel efficient aircrafts and focused on lowering fixed costs and increasing profitability.
  •  Air Travel is vital to online travel industry because it not only drives sale of flights but also hotel stays and rental car bookings.

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