Here is Importance of Electronic Banking.E(Electronic) Banking is an important modem banking facility. All most all the banks are providing this facility to their accountholders and customers by using computer technology. E Banking has brought remarkable changes not only in the methods of traditional banking transactions but also in their systems of record keeping.
Importance of Electronic Banking In Business And Life
The evolution of electronic banking started with the use of automated teller machine (ATM) and has included telephone banking, direct bill payment, electronic funds transfer and online banking. It has been forecast that online banking will continue to be the most popular method for electronic financial transactions. E-Banking system enables the banking customers to access the accounts, withdraw amount from accounts, bill payment and obtain information about the banking products and services during 24 hours through network.
DEFINITION:
“E-banking can be defined as the automatic delivery of banking products and services to customers through interactive electronic communication.
Importance of Electronic Banking And Its Benefits To Society
The perspective of E-banking is based on the following factors:
- Communication Perspective:
The motive of communication is to get familiar with the client and help the client getting familiar with you. Communication leads to information which is an important commercial weapon. E-banking has made the information about a product more important than a product itself. The new I.T products like internet, web advertisement, online system have increased opportunities to inform the world about your products.
- Business Perspective:
The commercial purpose comes next that the use of I.T products for business dealing and operations makes the business easy. With the help of I.T products the businessmen can record the transactions and genet ate required reports immediately.
- Service Perspective:
Think of the best can get out of I.T products. Don’t just think about business. Let your mind go to factors like customer satisfaction, customer support, reputation etc. All these factors illuminate the service perspective
4. Online Perspective:
It means doing online business where there is no physical coula. i between customer and bank. It makes the banking business cross all borders and boundaries.
ADVANTAGES OF E, BANKING
The benefits of E. banking can be explained under following three head-.
Advantages of E-Banking
Benefits to customers
Benefits to bankers
Benefits to economy
[BENEFITS TO CUSTOMERS]
- Customer can with draw cash at any time through ATMs.
- Besides withdrawing cash customers can also have mini bank statement at these ATMs.
- Through Internet banking customer can operate his account while sitting in his office or home.
- E-banking has also greatly helped in payment of utility bills. Now there is no need to stand in long queues outside banks for this purpose.
- The growth of credit card usage also owes greatly to E-banking. Now a customer can shop world wide without any need of carrying paper money with him.
[BENEFITS TO BANKERS]
- The growth of E-banking has greatly helped the banks in controlling their overheads and operating cost.
- Now, the customers can make payments, obtain bank statements and information about different bank schemes through ATMs and web sites of the banks, which help the banks in improving their performance.
- E-banking provides not only modem banking facilities to the people but also helps in making their business tasks easy. Due to this, the dealings of the people with banks have increased to a great extent and led to the growth of banking industry.
- Electronic banking has greatly helped the banks to reduce paper and manual work. Due to this, now the banks can keep their records more accurate and up to date.
[BENEFITS TO ECONOMY]
- E-banking greatly serves both the general public and the banking industry. This has resulted in creation of a better enabling environment that supports the growth of productivity and prosperity.
The people are getting more employment opportunities due to the growth of economic sector and banking system in the country. Moreover, the standard of living of the people is also improving due to increase in their incomes.
Final Recommendation on Importance of Electronic Banking.
Electronic banking, also known as online banking or internet banking, has become increasingly important in today’s digital world. Here are some of the key reasons why:
- Convenience: One of the most significant benefits of electronic banking is its convenience. Customers can access their accounts and perform transactions from anywhere at any time, as long as they have an internet connection. This saves time and effort that would otherwise be spent traveling to a physical branch.
- Cost savings: Electronic banking is generally less expensive than traditional banking because it requires less infrastructure, staff, and other resources. As a result, banks can offer lower fees and better interest rates to customers.
- Speed: Transactions can be processed and completed much faster with electronic banking. This is because there are no physical documents to be signed, scanned, or mailed, and everything can be done electronically.
- Security: Electronic banking is generally secure and protected by encryption and other security measures. This reduces the risk of fraud, identity theft, and other forms of financial crime.
- Access to information: Electronic banking provides customers with instant access to their account information, including transaction history, account balances, and other details. This allows them to track their finances more easily and make informed decisions.
