Concept of Ideal Banking and Realization of it using Ubiquitous Banking

Sreeramana Aithal and Suresh Kumar

MPRA Paper from University Library of Munich, Germany

Abstract: A bank is a financial intermediary and creates money by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed directly by loaning or indirectly through capital markets. After the advent of technology and its penetration to all business fields, the responsibility of banks is enhanced to provide better, speedy, and ubiquitous service to the customers so that it can create more money and hence profit. Banks are formulating various strategies in order to attract more deposits and lend it to genuine customers to get a better return and hence make more profit. Based on such objective of a general banking system, the ideal concept of the banking system is developed. The ideal bank is a system with ideal banking characters. In this paper, a model of the ideal banking system is proposed by considering the ideal characteristics expected under input conditions, output conditions, system requirements, and environmental conditions. The factors affecting these characteristics are identified using a qualitative data collection instrument namely focus group method. Finally, some of the possible technology supported models which support the concept of Ideal banking are identified and analyzed. It is found that electronic banking using mobile devices called mobile banking or ubiquitous banking system has characteristics close to the features of the ideal banking system.

Keywords: Banking innovations; Ideal concept of banking system; Characteristics of ideal banking system; Mobile banking; Ubiquitous Banking. (search for similar items in EconPapers)
JEL-codes: G2 (search for similar items in EconPapers)
Date: 2016-06-10
New Economics Papers: this item is included in nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/72338/1/MPRA_paper_72338.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:72338

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().