Development of Internet Banking as the Innovative Distribution Channel and Turkey Example

The banking industry is one of the fastest sectors realizing the developments and changes in the field of technology innovation. Demand on web based banking products increased as a result of expanding customer focused service understanding, decreasing attainability cost, its competitive market structure and consumers’ wish to reach banking products fast, effective, productive way. Electronic banking provides an important competition advantage to the banks in terms of time, location and cost. Recently, it is concentrated on the advance technologies that are the source of the electronic banking in the interbank competition. On the other hand, internet banking is the most important element of the electronic banking. Besides being periodically diversified, the innovative banking tools attract fast increasing demand in years. This study examines the development of web banking tools used in Turkish banking industry and products of these tools, and consumer reaction in this development level in economic framework. The study also investigates the effectiveness of Turkish banking industry by means of innovative products and processes made by web banking product channels used in Turkey with a structural analysis. The study concluded finding out that the number of products used in web banking and consumers making use of these products noticeably increases in time. On the other hand, when comparing with other samples in the world, using the internet banking in Turkey has not reached to required level yet. When considering this position, in order to disseminate the electronic services, it is more than important to take some precautions. Overcoming clash between web infrastructure and banking industry security, diversification of banking products, strengthening the comprehension of tendency of using web banking, will be effective on speeding-up development of web banking increasingly.