The Real Value of Electronic Banking

Abstract

In this paper we will argue that Internet has a transformational impact on the business of retail banking. The primary objective of this study was to identify the ways value can be created. We compared the perceptions of the new value preposition from the perspective of the bank’s customers — users and non-users of Internet-banking. These perceptions were related to the changes in their banking behavior. The results imply that Internet-banking creates new value for the customer and also represents a powerful marketing tool capable of utilizing information about and for the customer. The shift from transaction-oriented to a information-oriented business model is behind the transformation of retail banking.