Definition of E-banking
E-banking is easy, fast, efficient and safe electronic service which enables people to get access to bank account and to carry out online transactions. This is basically a utilization of internet in order to organize, investigate as well as make some changes to the bank accounts and investments. Simply, e-banking is a use of internet by banks in order to operate bank accounts as well as services in more appropriate manner. The main purpose of e-banking services is to offer the bank customers effective and faster services at very low cost.
Significance of E-banking
E-banking has made banking quicker for banks as well as customers with so many benefits provided by it. Some main advantages of e-banking are mentioned below:
- It provides methods and ways for international banking.
- It enables the users to access banking services 24*7.
- It provides effective security to all the users through encryption and other security techniques.
- It offers an appropriate and well-organized cash management.
- It helps the banks to compete in market by taking advantage of different integrated banking services.
- It also saves the time of customers as well as bank employees.
What are the methods of E-banking?
There are different methods of e-banking as mentioned below:
Online banking is also known as internet banking that permits the customers to utilize all the banking services with the use of computer through internet. Online banking provides various features such as loan applications, bank statements, e-bill payments, funds transfer etc.
Interactive TV is a useful service that permits users to communicate with TV content as they see it. It is also known as idTV or iTV. After subscribing to cable television service, the user can perform various activities such as balance enquiry, bills payment etc. through TV only.
SMS banking is a service allowing banks to utilize chosen banking services from the mobile of users through SMS. SMS banking mainly involves pull and push messages. Push messages are the messages that are sent by the banks in order to alert its customers about new services, new offers etc.
Mobile banking is one of the widely used methods of e-banking. It refers to the utilization of smartphone or some other cellular devices in order to perform tasks related to online banking. The tasks performed through mobile banking involve bill payment, locating nearby ATMs, fund transfer, monitoring bank balances etc.
Telephone banking is another service provided by the banks in order to enable the customers to perform bank related transactions online. Telephone banking systems utilizes automated answering system integrated with keypad response or capability of voice recognition.
Some statistics related to e-banking are as follows:
- Many of the customers of banks are giving up before registering to online banking.
- In 2004, it has been identified that there were about ten million people use interactive-TV service in Europe.
- Total 10% users of internet banking gave up just because of poor usability and security concerns.
- Approximately 88% users of e-banking visit banking websites at least once a weak.
- There are different problems faced by disabled people and ageing population while using e-banking and these problems mainly involve physically impaired, hearing impaired, blind, partially sighted, cognitively impaired and age-related impairments.