What Is E-banking?
E-banking or Electronic banking allows one to carry out banking transactions/activities using the computer and telecommunications network rather than physically transferring cash, checks, or other negotiable instruments. By this, a customer conducts transactions (banking activities) at home electronically via the Internet.
Definition 2
Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology as a substitute for checks and other paper transactions.
How E-banking Works?
E-banking enables users to access their bank accounts and conduct numerous online or mobile transactions. The following steps are included in the procedure:
- Creating an Online Banking Account
Customers must first open an internet banking account with their bank before using e-banking. This usually entails entering personal information like their name, address, and account number and creating login credentials like a username and password.
- Logging In
Customers can then use their login credentials to access their e-banking account via the bank's website or mobile app once the account has been setup.
- Managing Accounts
Customers can then examine their account balances, transaction history, and other account information and conduct various transactions, such as transferring funds between accounts, paying bills, and setting up automatic payments.
- Ensuring Security
Banks utilize a variety of security measures, such as encryption technology, two-factor authentication, and fraud detection systems, to protect their customers' information and prevent fraud.
Using e-banking is straightforward. Customers can go to their bank's web portal or download the bank's mobile app to get started. They must create an account using their account number and additional personal information such as their name, date of birth, and email address. They can access all of their account information and execute transactions once they have logged in.
Benefits of E-banking
- Customers can access their accounts and conduct transactions from anywhere globally with an internet connection, eliminating the need to visit a physical bank branch.
- Banks can minimize operational expenses by providing online banking services, resulting in lower fees and greater interest rates for customers.
- Customers save time and effort by not waiting in long lines or filling out forms at bank locations.
- Because e-banking eliminates the need for physical bank branches, banks can reduce their carbon footprint and contribute to a more sustainable future.
- E-banking systems employ encryption technology and two-factor authentication to protect customer data and prevent illegal access, and e-banking systems use encryption technology and two-factor authentication.
Examples
Example 1
The most widespread type of e-banking is online banking, in which consumers access their bank accounts online. They can see account balances and transaction history, as well as complete various tasks such as moving funds, paying bills, and establishing automatic payments.
Example 2
Through mobile banking, customers can access their bank accounts using mobile devices such as smartphones and tablets. They can use mobile banking apps to conduct transactions and view account information.
In Sentences
- E-banking is becoming a more popular way for people to manage their accounts.
- As more consumers switch to digital banking, banks must continue to invest in their e-banking infrastructure and security measures.