Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Studies

Bill payment services are being emphasized in online demos of retail banking services he same level of interest was not allocated to other key functions including fund transfers and self services says a new report from Corporate Insight.(2010) We were surprised that a number of financial institutions seemed to gloss over the multitude of services available in their customer service sections of their online demos. More attention was given to bill payment than any other service. This represents a distinct change from our last look at demos, back in January, 2001".said Erica Bensousson,. (2010) Retailers that offer walk-in bill payments give consumers multiple reasons to visit their store on a regular basis. Walk-in payment services have the potential to increase foot traffic and customer loyalty. (Harrison,2008) Cash-reliant consumers that do not have traditional bank accounts or credit cards, can now benefit from having a completely self-service bill payment option at their fingertips. The self-service functionality enabled retailers an opportunity to offer

additional services to their customers without added personnel hires. (Schuleman, 2008) New technologies may have a critical impact on our general understanding of bankcustomers' behavior. Consumers might for instance, with an easy-to-use and convenient Internet banking service, choose a bankthat offers the easiest, cheapest and most convenient Internet banking service. Karjaluoto, Heikki (2010)

Foreign Literature
Koch,(2007)Bank is a financial intermediary accepting deposits and granting loans: offers the widest menu of services of any financial institutions. The widest range of financial services like payment services led to banks being labeled financial department stores. Koch,(2007) The payment role of bank is carrying out payments for goods and services on behalf of their customers or such as by providing a conduit for electronic payments. Viewed as a whole, the impressive array of services offered by modern banks adds up to greater convenience for the customers.(Rose, 2007) According to Ms Eng(2007), Standard Chartered Bank has received a lot of positive feedback regarding the convenience of the Bill Payment System and would like to thank all of the Bank's valued customers for their support. Consumers are drawn to billers' sites because they can find their bills easily and the service is free. Banks must strive to provide more value with their online bill payment applications to attract and retain profitable customers as well as reap the

significant payment-related revenue. Bill payment will pay off for banks if it is done right.Litan (2008) In many industries the concept of full-service is on a rapid decline. Self service either aided by technology or otherwise is dramatically altering the way many services are created and delivered. While Banking and Financial Service Industries (BFSI) continue to invest heavily in technology, use of technology mediated self service is spreading rapidly to other industries also. (Jayasimha, 2007)

Local Studies
Bill & Melinda Gates Foundation (2010) launched a study with Bankable Frontier Associates to understand the demand for domestic payment services in the Philippines and to identify potential opportunities and unmet needs for mobile money providers to target. The study found the Philippines is an active and mature payment market, with a myriad of payment providers, including payment centers, banks and pawn shops to choose from. For bill payments, customers can pay in a bank or payment center. Both options have their short comings: although banks are trusted (especially with large amounts), they suffer from long queues, unfriendly and limited staff. Payment centers are cheap and closer to home than a billers office, but also suffer from long queues and delays to credit customer payments at the biller. In addition, neither banks nor payment centers are widely accessible, especially in rural areas. (Goss, 2011)

According to the National Statistics Office (2007), OFWs' leading modes of remittance are banks, their respective agency's local office, through friends or coworkers coming home, or through door-to-door delivery. With GCash, an OFW abroad can directly send the remittance to a beneficiary's handset through any of its 400 partner remittance outlets in 15 countries. Once the remittance is received, the beneficiary can use the GCash as payment in 6,000 accredited outlets for tuition fees, loans, bills, and retail products. Citybank has better mode of payment in cases where credit cards are not always accepted. Citibank Ready Credit can be used to pay for the children's tuition fee, make your insurance payments, finance house repairs, pay your taxes, settle bills, even purchase art pieces. (Bussinessworld, 2010) Not one bank offer all the services that customer want, we usually have accounts in more than one bank. BDO are one of the banks that offer a lot of services, including Internet banking, investment options and private and corporate banking, but we'll mention only part of those that interest us, or that are unique to one bank.(Woods, 2009)

Local Literature
Students now can pay tuition fees using bank's online banking systems. To enroll in BDO Internet banking, you need to have a BDO account. Enroll online at the BDO online banking website mybdo.com.ph, get your ATM activation code and then activate your enrollment at any BDO ATM. (Banks Philippines, 2011)

DLSU-Dasmarias, through the effort of the Accounting Office, has instigated a new, safe and an expedient manner of paying school tuition fees. In collaboration with the Security Bank students and their parents can practically employ an overthe-counter payment in Security Bank' South Luzon Branches. (Security BankDasmarias Branch) HSBC offer the students of Ateneo (Loyola Schools) a convenience and security of paying their tuition fee using HSBC's Online Bills Payment Facility.It goodbye the long lines and complete the payment in minutes.Pay online by debiting HSBC or HSBC Savings Bank Deposit Account or charging HSBC Credit Card. (hsbc.com) Colegio San Agustin - Bacolod is now accepting payments online. Philippine residents may course their payment through any BPI branch. For residents of Hong Kong, Italy, Spain, the United Kingdom and the United States, payments to Colegio San Agustin - Bacolod may be coursed through BPI's network of remittance centers. (csab.edu.ph)

OFW can now pay their loved one's monthly Meralco bill in the Philippines directly, from anywhere in the world.With expensive remittance fees. (Tawag Philippines, 2011)