Electronic banking is a virtual platform that financial institutions implement for their clients.
The idea is that people use their electronic devices (cell phones, tablets, computers, among others) instead of physically approaching agencies. That is, the objective is that they can perform various operations remotely and automatically.
Among the most common operations that are available under this modality are: Check balances, money transfers , payment of services, among others.
Three concepts related to electronic banking
It is important to differentiate between three concepts related to electronic banking:
- Electronic banking:Refers to all types of services by electronic means. This includes, in a broader sense, ATMs. Some even consider the attention provided by telephone.
- Onlineor Internet banking : Includes all transactions that can be made from the computer or mobile device using an Internet connection.
- Virtual banking:A virtual bank is one that has no office. It is confused with electronic banking, but it is not the right term if we want to refer, for example, to bank transfersthat can be sent from the smartphone.
Advantages and disadvantages of electronic banking
Among the advantages of electronic banking include:
- It allows customers to complete transactions quickly. This saves time and transportation costs.
- There is the convenience of being able to operate from anywhere.
- Less people are expected to approach the bankas the use of electronic banking increases. Consequently, attention in the face-to-face mode should be more agile.
- Avoid the risk of using cash(theft, loss, among others). Which implies greater security.
- In addition, it allows customers to have more comprehensive control over their accounts.
However, there are also some disadvantages:
- Entry barriers are high in certain market segments such as the elderly or without access to the web. This is relevant, especially in developing countries where Internet penetration is relatively low.
- There is always some distrust of some users regarding the security of their information when they share it online.
- Not yet many personalized services can be provided from electronic media, for example, in terms of financial advice.
- The same security that prevents theft, creates the possibility of hacking.
- In line with the first disadvantage, there is a greater disinformation regarding the possibilities offered by electronic banking.