Electronic Banking Essay

Electronic Banking or E-Banking also known as Virtual Banking uses electronic technology and computer in place of cheques and other paper transactions. E-Banking are initiated through devices like cards or codes that let the user access their account. Many financial institutions like banks use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other types of debit cards that require your signature or a scan. Virtual banking, which does not involve any physical movemnt exists in the form of ATMs, phone banking, home banking, and Internet banking. A virtual bank is a bank which does not need any branch that involves the provision of fully automated banking services.

E-banking is the name that signifies and encompasses the entire sphere of technology initiatives that have taken place in the banking industry. E-banking is a propriotory term making use of electronic channels through mobile phones,elephone, internet etc. for delivery of banking services and products. The concept and scope of e-banking is still in the transitional and progressive stage. It increases efficiency in the sphere of effective payment and accounting system thereby enhancing and improving the pace of delivery of banking services substantially and considerably. It allows customers to access banking services electronically through different mediums such as to pay bills, transfer funds, view accounts or to obtain any banking information and advice. E-banking also facilitates and avillieates new relationships with customers, regulatory authorities, suppliers and banking partners with digital-age tools. For example, customers and bank relationships will become more personalized and effective, resulting in new modes of transact...

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... new possibilities. Due to the absolute transparency of the market, clients (both business as well as retail) can compare the services of various banks more easily. The Internet has continued since the late 1960s but for most of that time it was only available to governments and for scientific groundwork purposes. By the mid 1990s, as web interfaces enhancesd improved, it became available to the public and E-commerce developed, allowing businesses to offer their products and services on the web. For example, on the internet, if clients are not happy with the products, services or prices offered by a particular bank, they are able to switch their banking partner much more easily than in the physical or real bank-client relationship. From the banks’ point of view, use of the internet has significantly reduced the physical costs of banking operations and transactions.