E-business and JP Morgan Chase Essay Example
E-business and JP Morgan Chase Essay Example

E-business and JP Morgan Chase Essay Example

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  • Pages: 4 (827 words)
  • Published: February 9, 2018
  • Type: Case Study
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In the current economy, e-business has become the main way of conducting business and is even the sole method for certain organizations. E-business allows traditional businesses to establish an online presence, opening up new opportunities and previously untapped markets. This article will analyze the effects of e-business on JPMorgan Chase and Company (Chase), considering its advantages, limitations, and risks while emphasizing the benefits that Chase gains from implementing e-business.

Online Banking, made available through the Internet, enables businesses to connect and engage with a wide range of customers. While some businesses leverage virtual stores for selling products, others utilize the Internet for offering specialized services such as online banking. JPMorgan Chase, a well-known financial institution, stands as one of the leading players in this sector.

JPMorgan Chase (2010) states that Chase bank was established in New York

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in 1799 and now operates globally in over 50 countries. Originally, Chase bank served as a small traditional financial institution, granting loans to small businesses and providing private banking services to the affluent. However, they have extended their presence by establishing convenient locations around the world and creating an advanced online banking platform. This enables customers to opt for either visiting a physical branch or conducting banking activities from home.

JP Morgan Chase was impacted by the effects of e-Business in the early 80s when Bank One, which later merged with JP Morgan Chase, introduced an online home banking system named Channel 2000. With this system, customers could perform various banking activities such as viewing statements, paying bills, and transferring funds between accounts. Building on this foundation, Chase developed their own online banking system that provided customers with expanded options including

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stock trading, statement viewing, checkbook balancing, and budget tracking.

The implementation of this online banking system provided Chase with a competitive edge in the banking sector, prompting numerous individuals to switch their accounts to Chase. The introduction of online banking opened up new avenues for Chase to target customers who were previously out of reach, as it offered them more convenient alternatives for conducting their banking activities online. Additionally, these opportunities resulted in significant profits for Chase during the 1980s.

Chase has found success in the e-business industry through online banking, which has become a standard in today's world. With online banking, customers can access various services such as bill pay, money transferring, commercial banking, investment management, and credit monitoring. These services come with small fees that contribute to Chase's increased profits. Moreover, online banking has sparked technological innovation within the banking industry. As a result of this development, other banking services are now accessible through the internet or mobile technology, simplifying personal and commercial financial management.

Chase has experienced positive outcomes from adopting online banking, including an increase in new customer accounts, improved competitive edge, and the implementation of new banking standards. Nevertheless, these benefits also expose the company to certain risks that can jeopardize its operations. In today's digital environment, Chase needs to confront external threats such as hackers, malicious users, and security breaches since failing to protect against them could have a significant negative impact on their business.

Acohido (2010) stated that in September of 2010, Chase faced a three-day outage in its consumer online banking system which caused all online banking services to cease. According to Chase, this issue was caused by a system outage

from a third-party vendor rather than an online attack. However, cybersecurity experts argued against dismissing the possibility of a malicious attack. Regardless of whether it was a system outage or deliberate attack, these incidents emphasize the risks associated with e-business that Chase must defend against. Such events can harm the company's reputation and potentially compromise its security. As a result, Chase and other banks have had to develop new innovations to safeguard their business and customers from potential attacks like this.

The extent to which e-business is limited depends on the investment of capital by the business. If a business decides not to allocate funds to their e-business, its operations will have restricted functionality and fewer benefits for the organization. Nonetheless, Chase online banking provides customers with unrestricted access to all banking services. Furthermore, online banking has enabled Chase to gain customer insights, develop new marketing approaches, and expand their global customer base.

Today, businesses are using the Internet to maintain their competitive advantage. JP Morgan Chase has created a virtual banking world to attract more customers and increase their profit. The decision to open an online banking website has positively impacted Chase by providing more banking options for their customers. This paper explores how e-business has affected Chase, including the advantages, limitations, and risks it has presented, and how Chase is benefiting from their online banking platform.

Reference

Acohido, B. (2010, September 16). JPMorgan Chase's online banking outage sparks questions. USA Today. Retrieved from http://content.usatoday.com/communities/technologylive/post/2010/09/investigators-seek-specific-trigger-to-jpmorgan-chases-online-banking-outage/1

JPMorgan Chase. (2010). The History of JPMorgan Chase and Co. Retrieved from http://www.jpmorganchase.com/corporate/About-JPMC/document/shorthistory.pdf

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