ATM Haidar Khan :The world is moving towards internet, most things in these days are getting digitalised, electronic commerce (e-commerce) has changed the way of trading in almost every sectors of business. The e-commerce has been implemented in banking industry in many countries. This study is to show the difference of e-commerce practice or use in banking industry between developed and developing countries. I have chosen the UK as developed country and Bangladesh as developing country. According to a report of the Office of National Statistics, 80% people in Great Britain have access to the internet. In the UK, internet banking is very much rich and available to the people and 12 internet service providers are providing internet banking to the customers. The Egg is the example of one of the internet banking service providers. A report indicated that more than 150,000 customers visited the Egg website during Oct 1998 to July 1999. In the United Kingdom, the internet service providers have experienced a growing demand for cross border payment transactions for even a for little sum of cash and payment over the web. A good number of UK banks nowadays are developing and lunching new internet banking service to satisfy and meet the requirement of their internet banking user-customers. Banks are nowadays strongly maintaining the security and privacy of their customers. In the year of 1999, United Kingdom along with 8 other Western European countries became the leading countries of providing internet banking in Europe. Those 8 other countries are Germany, Swaziland, Holland, France, Portugal, Spain, Luxembourg and Scandinavia. The rank of Germany in providing internet banking service was also remarkable. Though, in the United Kingdom the number of internet banking site was lower than Germany, but the UK was rated the highest excellence and functionality at no-extra-charge to their beneficiaries in the Europe. However, there were 2 banks in the United Kingdom that charged extra for internet banking service. Those two were NATWEST Bank and NPBS. In Scotland, The Bank of Scotland does not offer 24×7 service through their website. Customer cannot access to internet banking during a certain period of a day. When the internet banking is not available, a back office maintenance is performed security and accuracy. In the United Kingdom, most of internet banking user customers use internet banking to make inquiry about their account balance, transfer of money, pay their bills and purchase goods and services and banking on online became a daily and essential activities of bank’s customers. This is why bank reduced the operating cost and made online banking for 24 hours.A recent study conducted by analyst Forrester Research has uncovered conflicting opinion about the security of internet banking. The study was conducted on 11,300 UK internet clients and it was found that while a good number of internet banking users are satisfied about their online safety, a minor number left internet banking service as the straight result of security fears.There is an awareness in almost every UK net user of security threats like and keystroke logging but they are unfazed by this type of risks and have an expectation from their bank to deal with these kind of problems, although this variety of harassment are terrified against the clients personal computer rather than the system of banking. Ideally almost every bank customer expect the bank to provide the layer assurance against fraud. According to the response to the research, Forrester came onto a decision that an approximately 600,000 from total of fifteen months users have abandoned internet banking as the straight result of safety fears. He believes those customers are not confident about the internet banking also. Bank needs to educate their customers about security fraud. Additionally, people who decide to leave internet banking for the fear of security, another fifth of internet users say that security fear will stop them from ever banking on the internet. Incessant innovation is seen as the core marketing model in developing countries. e-commerce in developing countries are relying on innovative technology to create new market or penetrate existing market. Nowadays, e-commerce in developing countries are building unique ways to marketing their product and service by combining existing facilities with modern internet technology. In banking sector, innovative product and service (digital) such as internet banking, ATM banking are not only seen as innovative technologies for providing financial service to active banks’ client but also the basic technologies are expending the stipulation of financial goods and services to poor customers who are not generally with any bank. Particularly, the internet is seen as a significant technology in developing the provision of banking service to “Unbanked” population. The finance and banking products are mainly information services and the delivery form of such services is digital. It is more digital in developed countries and less in developing countries. The fundamental information and communication technology based ambitious procedures are subject to stable change not at least due to new distribution channel like internet banking. Shifting client preferences at a time with describing loyalty is a new challenge financial institutions which have to deal with. Customers who use internet are better informed about the products and they are more price-sensitive than offline customers. It is beyond doubt that computer and internet usages have created a customer surplus especially in the field of internet banking service. The numbers of internet users around the world are increasing rapidly and this development has created a momentum and opportunity for the world’s electronic commerce. However, with Web, different characteristic of infrastructural, socioeconomic and socio-culture have developed an important level of difference in the acceptance and growth of electronic commerce in developing countries. But the nature of internet banking and e-commerce are not fully different from the developed countries. Bangladesh is a South-Asian developing country. Bangladeshi business institutions are facing problem to start full swing electronic business. Network is the main mode of communication with the computer. There are several types of network that exist in Bangladesh such as Local Area Network and wireless network. According to a media report Bangladesh ranked 118th in the Global Network Readiness Index in 2009-2010 and it was 130 in the year of 2008-2009 and India were ranked 47th and Pakistan were in 72th respectively. Another report published by World Economic Forum on 03-04-2010 said that Bangladesh has to go a long way to develop internet networking. The government of Bangladesh has set a mission to digitalize the country by 2021 and companies and strategic alliance is needed to develop e-commerce system in the country. e-payment system for electronic commerce is characterized by broad geographic presence and adoption by a large number of buyers or programmers. The amount of e-payment in Bangladesh is very little and growing rather slowly. The internet service started in Bangladesh by a private company in the year of 1996. Even till now all the internet service providers have their server outside the country. For this reason people and companies in Bangladesh are facing competitive disadvantages, as cost remains very high. There are high security problem also.The concerned authorities of Bangladesh are not quite aware of the benefit of e-commerce and e-banking products. They do not put importance on correct and systematic development of electronic commerce. In this connection it may be said that Bangladesh Bank -the Central Bank is trying to apply automated clearinghouse by utilizing MIRC Procedure. But in developed countries like United Kingdom, the MICR has been replaced by more sophisticated procedure such as Cheque Transaction process. There are 47 banks in Bangladesh. On the basis of utilization of electronic devices and processes these banks in Bangladesh can be divided into 3 groups. 1. Foreign Commercial Bank and Private Commercial Bank 2. New Generation Private Bank3. Nationalized Commercial Bank Among the 3 groups, only few banks foreign commercial banks and private commercial banks are operating low grade Internet Banking. At present, the banks in Bangladesh are offering very limited internet banking service. It is suggested that Bangladeshi banks can attain more revenue by introducing online banking system. Bangladeshi people are not used to use the internet service, as the education rate in Bangladesh is low and majority of the people are not literate in computer. Moreover, it will take time to make people aware the benefit of e-commerce and Internet banking. Moreover, there is proper tele infrastructure in the country.The banks in Bangladesh are offering following e-commerce Products and services :Wholesable product and service Retail/ product and service Wire Transfer, Fund transfer Automated Clearing House/ Transaction Downloading/ Transaction info. Facility Bill Presentation and Payment/ Presentation of bill and payment Cash Management/ Balance inquiry Credit Card Online Banking provides good Customer service 61%Anytime service 56Bank personnel behave properly 52Better E-business Environment 67There are lots of problem that had been identified relating to Internet Banking in Bangladesh. The major problems are:Inadequate knowledge of Banking Management and Online Banking, Lack of the communication channel that meet international standard,The cost of system establishment is very high,Inadequate office management,Lack of proper strategic plan, Inadequate internet facility, Computer literacy rate is very low Server security problem, Lack of trusted software developer, Lack of public awareness.In overall examination, the policy implication for electronic commerce involving is that that most of the important changes adopting by banks are already subjected to existing rules. Furthermore, most of the transformation in this industry regarding electronic commerce are related in different ways to edge issues like consolidation and internalization that. It emphasizes on regulatory reform programme at home and international levels. By considering the overall issues and statistics, it can be assumed that e-commerce plays a great role in banking industry and has bright future in both developed and developing countries.
