Which of the following is NOT a benefit of e-banking for banks?*1 pointa) Price savingsb) Customer base expansionc) Increased operational efficiencyd) Higher transaction fees
Question
Which of the following is NOT a benefit of e-banking for banks?*1 pointa) Price savingsb) Customer base expansionc) Increased operational efficiencyd) Higher transaction fees
Solution
The option that is NOT a benefit of e-banking for banks is d) Higher transaction fees.
Here's why:
a) Price savings: E-banking allows banks to save costs on physical infrastructure and personnel, leading to significant price savings.
b) Customer base expansion: With e-banking, banks can reach out to customers beyond their physical location, thereby expanding their customer base.
c) Increased operational efficiency: E-banking automates many banking processes, leading to increased operational efficiency.
d) Higher transaction fees: This is not a benefit for banks. In fact, one of the attractions of e-banking for customers is the lower transaction fees compared to traditional banking. Therefore, higher transaction fees would not be a benefit for banks, but rather a disadvantage.
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