Pricing Component Paper
...ows you to obtain up to date information, pay bills or transfer funds between accounts. By moving your money between current and savings accounts you might be able to improve the overall interest earned by your money. An alternative or complementary service to online banking is telephone based banks. These banks conduct all their business via the telephone, and like the online banking systems, they have no branch network. The demand for online banking is relatively price inelastic. The main reason online banking is inelastic is because competition prevents suppliers from raising rates higher than the normal. USAA online banking is free and they obtain most of its money off of interest from its customer’s money. If they were to start charging fees for its online banking, then they would drastically lose customers. One of the main issues that affect consumer demand for online banking is Internet security. Internet security is always an issue and a major concern for customers. The Internet is still a developing technology and accordingly is constantly changing and undergoing development. There are individuals out there that prey on online banking victims. They use false websites and Internet ploys to trick people into giving away privacy act information to include social security and checking account numbers, addresses, phone numbers, and so on. However, there are a number of steps you can take before using any online banking services to protect yourself from the risk of being a victim of fraud. They are as follows: • Never give them to anyone else • Never send them via email (email is NOT secure or private) • If given the option to set a password for your Internet banking service, never use an obvious password or a password that someone who knows you might guess • When you have finished with your Internet banking session, always close your browser so that someone else can't access your account details after you leave your PC. • Never write down your ID, password or PIN number Overall if you bear these guidelines in mi...