Abstract：It is widely accepted that e-banking leaves great impact on individuals and bank themselves in the past few years.E-banking not only enables banks to gain more flexibility and more services，but also contributes to the decline of overhead costs through alternative channels instead of physical branches.However，there could be more risks for banks than customers after balancing the benefits and these potential risks suck as electronic virus.The main aim of this paper is to discuss whether banks benefit more than customers when they operating Internet banking，and analysis the main benefits also emphasize on hidden risks.it is recommended that further comprehensive studies should be conducted with details about business operation of banks and methods for avoiding risks as well as to cover the topic from different perspectives.

1 Introduction

During the last few years，e-banks have revolutionized the bank industry to some extent.E-bank used to be an additional delivery channel for traditional banks.However，it turns out to be essential part of banking transactions（DeYong et al.2005）.According to his report，economies of scale have been largely expanded due to the automated technology and powerful functions of management from e-banking.

Due to advanced technology，Internet functionality could help banks reduce overhead cost and obtain new business opportunities.Customers tend to have a better time organization because it does not have cutoff times.On the other hand，there exists serious potential risks for both banks and users，such as hackers and phishing，which could make customers and banks suffer huge monetary loss.

The purpose of this project is to examine whether banks benefit more than customers for operating e-banks.The paper will be divided into two sections.Section one will discuss the topic from banks perspective，and then the perspective of customers will be examined in section two.

2 Why do banks operate e-banks and relative conditions

Many researchers argue that e-banks have positive impacts on banks’growth.The study conducted by Arnaboldi（2008：4）in Finland，Spain，Italy and Uk about internet banking indicated that compared with traditional banking，internet banking is more likely to promote the development of banks，and competitiveness in the market.Banks might see a decline of operational cost，since rent fee seems to reduce as there would be less physical branches.Banks tend to benefit from the saved cost，which could help improve banks’operation and management indirectly.However，in order to ensure normal operation of e-banking， technology should be the most fundamental factor which still cannot be achieved in many developing countries. This means banks need to constantly innovate service system and improve user experience regularly with changing customer needs and competition，which could increase financial burden，because of expenses on training and infrastructure.

Sullivan（2000）argues that‘Internet technology has the potential to fundamentally change banks and banking industry’.With the growing power of technology，banks tend to access more customers by providing them with unique services and products possibly through smart phones and PC applications，with no physical presence in the form of a branch（Georgios and Athanassios 2011：304）.Regarding payment issues，banks can even adopt their own payment system to applications on mobile phones or three-party softwares with authority，such as Alipay in China and PayPal which could become invaluable sources of profits for banks.Despite those advantages，there are a few potential or imposed risks that still need to be focused on and tackled.Once compromised，hackers’computer can surreptitiously download a code that can log a victim’s key strokes，giving an attacker a potential access to wide range of network leading to a huge loss for both e-bank users and banks.

3 Section 2 Why do customers usis e-bank and relative conditions

The emergency of e-banking changed customers’conceptions of banking and promoted users’business efficiency to some extent.Customers no longer have to wait in queues and all they have to do is to own Internet accesses.This is proved a real boon for disabled people，as banking transactions might be also effortless for them （Georgios and Athanassios 2011：303）.//While some researchers have found that the complexity of new technology may cause a negative impact on customers satisfaction.using e-banking as a normal tool still seems a difficult thing for customers who are less knowledgeable and lacking of Internet skills.

E-banking could not only enable customers with extension of banking services，but also the smarter interaction with integrated online system（Georgios and Athanassios 2011：303）.Traditional banking services have been extended after the appearance of Internet banking，which provides more flexibility to customers.Smart online system has been designed for customers to solve relative problems with artificial intelligence，which means they can interact with advanced troubleshooting functionalities（Shannak 2013：248）.Customers are also able to know and search more information which has been classified on the website.However，perceived risk may also arise when using e-banking.The information presented on the web might be ambiguous and complex，which requires individuals to gain sufficient information to avoid uncertainty.（Dowling &Staelin 1994：117）.Nevertheless，one of the most significant issue that customers concern about is security risk，because it affects their property directly.Regarding to the Internet，it is common to find cases about hackers，phishing attacks and malware relating to e-banking. Unless the security issue has been tackled，customers tend to suffer huge financial loss from diverse potential risk online.

4 Conclusion

E-banking has influenced customers and banks to a great extent in various aspects such as expenses，working efficiency and security.This paper supported the major benefits of both banks and customers and also some problems when banks operating Internet bank and when individuals using it.As for banks，e-banking is like a method to attract more business opportunities，enabling them profitability when establishing collaborate with electronic business companies，although they are likely to suffer more financial loss than customers when being hacked.

In the discussion of customers’perspective，it was concluded that although they could benefit convenience and efficiency，potential risks are not easy to avoid.Meanwhile，it should be recommended that developing a safer e-banking environment is increasingly vital，since the sharing of data and open nature of the Internet make safety a severe issue （Kesharwani&Tripathy 2012：193）.

参考文献

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[3]Sullivan，R.J.How has the adoption of internet banking affected performance and risk in banks？.Financial Industry Perspectives，2000，1.

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作者简介

乔心培（1993.05—），男，硕士研究生，贵州财经大学，550025，银行绩效 。

张天歆（1994.02.14—），男，硕士研究生，英国诺丁汉大学。