Virtual Banks
Table of Contents
Introduction……………………………………………………………….……….p.1-3
Virtual Banks Defined……………………………………………….….….p. 1 Brief History…………………………………………………………..……p. 1-2 Competition………………………………………………………….……..p. 3 Major Players……………………………………………………………….p. 3 Use Amongst Canadians: ……………………………………………….….p. 4 Some Statistics
Benefits vs. Drawbacks of Virtual Banks…………………………………………...p. 4-6
Advantages ………………………………………………...…………….... p. 5-6 Disadvantages………………………………………...……………………..p. 7-8
Implementation of Virtual Banks in Canadian Banking System………………...….p. 9-10
References……………………………………………………...……………………p. 11
Introduction
Continuous innovation in technology has altered the way in which business is conducted in each industry. This is especially true for that of financial services or banking. The banking world has evolved tremendously since its inception with most recent trend being towards the development of an online platform. Most Institutions currently offer financial solutions via branches as well as over the Internet. The appeal of online activity has in turn led emergence of online only or “virtual” banks.
Virtual Banks Defined A virtual bank is one that exists online only in which nearly all financial transactions are conducted over the Internet. The differentiating factor for online banks is the absence of physical branches and ATMs. Also referred to as direct banks, these entities offer identical products and services to its compared to traditional “brick and mortar” institutions. This includes opening checking and high interest savings accounts with which bill payments, transfers, deposits and withdrawals can be made. Client’s can access money via partner ATMs or attain cash back at point of sale at certain merchants. Deposits are made directly, by mailing a check, and partner ATMs. Moreover, investments, lending products and professional advice can be acquired through the respective website.
Introduction……………………………………………………………….……….p.1-3
Virtual Banks Defined……………………………………………….….….p. 1 Brief History…………………………………………………………..……p. 1-2 Competition………………………………………………………….……..p. 3 Major Players……………………………………………………………….p. 3 Use Amongst Canadians: ……………………………………………….….p. 4 Some Statistics
Benefits vs. Drawbacks of Virtual Banks…………………………………………...p. 4-6
Advantages ………………………………………………...…………….... p. 5-6 Disadvantages………………………………………...……………………..p. 7-8
Implementation of Virtual Banks in Canadian Banking System………………...….p. 9-10
References……………………………………………………...……………………p. 11
Introduction
Continuous innovation in technology has altered the way in which business is conducted in each industry. This is especially true for that of financial services or banking. The banking world has evolved tremendously since its inception with most recent trend being towards the development of an online platform. Most Institutions currently offer financial solutions via branches as well as over the Internet. The appeal of online activity has in turn led emergence of online only or “virtual” banks.
Virtual Banks Defined A virtual bank is one that exists online only in which nearly all financial transactions are conducted over the Internet. The differentiating factor for online banks is the absence of physical branches and ATMs. Also referred to as direct banks, these entities offer identical products and services to its compared to traditional “brick and mortar” institutions. This includes opening checking and high interest savings accounts with which bill payments, transfers, deposits and withdrawals can be made. Client’s can access money via partner ATMs or attain cash back at point of sale at certain merchants. Deposits are made directly, by mailing a check, and partner ATMs. Moreover, investments, lending products and professional advice can be acquired through the respective website.
References: Canadian Bankers Association. How Canadians Bank. November 9, 2012. http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/125-technology-and-banking. Accessed November 18th, 2012 Canadian Internet Use Survey, May 25th, 2011. Statistics Canada Web. http://www.statcan.gc.ca/daily-quotidien/110525/dq110525b-eng.htm, accessed November 18th, 2012. Gordon, Elaine H.; Gordon, Edward E. (2003). Literacy in America: historic journey and contemporary solutions. New York: Praeger. p. 255. ISBN 0-275-97864-8. Investopedia. The Pros and Cons of Internet Banks. April 14, 2011. http://www.investopedia.com/articles/pf/11/benefits-and-drawbacks-of-internet-banks.asp. Accessed November 18th, 2012 Weisbaum, Herb. Looking for Better Rates? Visit a Virtual Bank. July 29, 2009. http://www.msnbc.msn.com/id/32206206/ns/business-consumer_news/t/looking-better-rates-visit-virtual-bank/#.UKRTuxzok1A. Accessed November 18th, 2012