What is E-Banking ? Online Banking ↓
E-banking refers to electronic banking. It is like e-business in banking industry. E-banking is also called as "Virtual Banking" or "Online Banking".
E-banking is a result of the growing expectations of bank's customers.
Image Credits © Jochem Koole.
E-banking involves information technology based banking. Under this I.T system, the banking services are delivered by way of a Computer-Controlled System. This system does involve direct interface with the customers. The customers do not have to visit the bank's premises.
Popular services covered under E-Banking ↓
The popular services covered under E-banking include :-
- Automated Teller Machines,
- Credit Cards,
- Debit Cards,
- Smart Cards,
- Electronic Funds Transfer (EFT) System,
- Cheques Truncation Payment System,
- Mobile Banking,
- Internet Banking,
- Telephone Banking, etc.
Advantages of E-Banking ↓
The main advantages of E-banking are :-
- The operating cost per unit services is lower for the banks.
- It offers convenience to customers as they are not required to go to the bank's premises.
- There is very low incidence of errors.
- The customer can obtain funds at any time from ATM machines.
- The credit cards and debit cards enables the Customers to obtain discounts from retail outlets.
- The customer can easily transfer the funds from one place to another place electronically.