A Study on the Supply Chain of E-commerce Transaction in the Banking Industry

As the Internet continues to develop rapidly, the applications of e-commerce extend to an ever wider range. Yet, in the smaller scale supply chain system, small-and-medium enterprises (SMEs) are limited by talents, funds, techniques, etc, and feel insecure in regard to online fraud cases. These shortcomings comprise the major obstacles for SMEs fully participating in e-commerce. The transactions of raw materials and merchandise usually involve a huge amount of money. If one side of the buyer/seller relationship violates the contract or causes a dispute, it could entail a substantial loss of funds, flow failure and low efficiency. This study aimed to provide SMEs with an e-commerce platform through the unique role played by banks in regard to financial intermediation and fund saving, so as to help SMEs to develop a safe, fast and fair environment for capital flow as well as transparent data. We confirmed the relevant problems through a literature review and conducted surveys on suppliers and purchasers. With the help of Analytical Hierarchy Process (AHP) analysis, we determined the most valuable factor for companies engaging in e-commerce, proposed solutions and provided plans for the banking industry concerning an appropriate e-commerce platform.