E-banking is a banking system which offers many services to their customers which includes accepting money, providing various banking services to customers, and providing loans to individuals and companies. As Compared to a traditional system of offering banking services through physical branches, online banking system uses the Internet to deliver traditional banking services to their customers, such as transferring fund, opening accounts and electronic bill payment.
The modern E-banking system is also known as Online banking or internet banking, is an electric payment system that allows customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website. To use online services provided by the banking institution, a customer needs to register his bank account with the financial institution for the use of services and set a password and other formalities for customer verification.
E-banking is the use of the internet to organize, examine, and make changes to your bank accounts and investments, etc. electronically, or the use of the internet by banks to operate accounts and services. E-banking is the automatic delivery of new and traditional banking services directly to the consumer by electronic means. Internet banking system includes the systems that enable financial institution, customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet.
ADVANTAGES OF E-BANKING
The using of banking services from home at any hour is one of the most common benefits of E-banking. Now you can transfer payments from one account to another even when the bank is closed. E-banking services allow a consumer to use their mobile apps to check their bank balances and perform their normal bank transactions. Also, with broader access to banks operating online, you can find lower fees and more favorable interest rates. We can also use E-banking to pay our day to day bills.
E-banking allows you to access your account history and transactions from anywhere. Many money applications will automatically sync with your online banking information. This makes sticking to your budget much easier. Many apps will work both on your home computer and your mobile device so you can stay up-to-date while you are on the go. It is also easier to track your spending for your budget if you are using one of these apps.
DISADVANTAGES OF E-BANKING
Even though there are many advantages of E-banking, but still some people prefer the old banking system over the modern banking system. There are many disadvantages of E-banking like not everyone can afford a stable internet connection, personal computer or laptop at home. Even for conducting a successful electronic banking transaction, like paying bills online or transfer funds from one account to another requires basic computer skills and knowledge of the Internet. Security issues are also one of the biggest drawbacks of doing E-banking. People worry that by using online banking services may their account can be hacked and can be assessed without their knowledge or fund can be transferred without their authority.