DoBanksBenefitmorethanCustomersforOperatingEbanking？

　　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.

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