Concept of E-Banking -Information Technology


Today, there is a lot of change in the Banking Industry. It is growing continuously with new products and creative services.  As new products are introduced business conduct has transformed and made a competitive environment of business. This change in form and function has been tagged as a banking revolution. Concept of E-banking is the result of this revolution. Assignment Help online will discuss the same with this blog.

The fundamental foundation of the survival of banks in this competitive world is experiencing a consistent change in accordance with the client’s needs. Expanding competition from financial institutions that are not the bank, changes in social and demographic trends, improvement of channel strategy, information technology.

These days almost all of the banks are adopting the concept of e-banking to empower paperless banking. Online banking has opened a gateway for all clients to work beyond the limits. This enables individuals to do their banking transactions utilizing secure sites ensured by their banks.

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Rise of E-Banking concept

The process of using technology in banking began with the utilization of punched card machines, for example, Ledger Posting Machines or Accounting Machines. In earlier days, the use of technology just limited to keeping accounts.

Internet banking was further developed with the introduction of the real-time system, with broad improvement in telecommunications during the period of the ’70s to ’80s, it reformed the banking segment as a convenience banking. With the help of convenient banking, the banking need of a customer is available at a doorstep.

RDBMS (Relational-Database Management) and distributed computing technologies were conceived in 1990. The financial industry was simply waiting for these methods. Presently with distribution procedures, one can design dedicated machines called front-end machines for client administration and risk control, while on front-end machines communicates in bunches without interrupting on the reaction time. When it comes to the academic assignment, All Assignment Help gives you the best guide.

What is E-Banking?

Malhotra and Singh (2004) characterized the concept of e-banking as the arrangement of banking products and services directly to clients on the network of electronics and communication. Traditional individuals might be associated with such transactions, for example, opening a saving account or transferring money to various accounts, and presenting new banking services, etc.

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How to function internet banking?

Our experts have explained some vital functions of e-banking for you. You will have an idea about the e-banking system.

Electronic Information Transfer System

The framework gives specific information about customers such as transaction details, account balances and statement of accounts. Information is still basically in the ‘Read Only’ form. The personality and confirmation of the client are done through the secret phrase. Information is drawn from the bank’s application framework either in bunch mode or disconnected. The application system can’t be accessed directly through the internet.

Fully Automatic Transactional System

This framework permits bi-directional abilities. The exchange can be presented by the client for online updates. It requires a state of high-level security and control. The application system and web-server are linked with a secure infrastructure. It incorporates networking, computerization, and security, between techniques comprising of legal infrastructure and inter-bank payment gateways.

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See, the uses of E-Banking

No doubt internet banking made our life so easy. We do not need to stand in queue for long hours, we do not need to go anywhere for paying the bills, and much more work we can accomplish while sitting at home. This is possible just because of internet banking. Our experts have prepared a list of uses of internet banking, it will be helpful for you. Let’s have a quick glimpse of them:

  • Payment of Bills

You can pay the bills of telephone, cell phones, electric, cards, and insurance premium since each bank has tie-ups with different service organizations, insurance companies, and service provider all over the nation. To pay your bills, you simply need to do a registration once for each biller. You can set vertical instructions online to consequently pay your common bills on the web. The bank does not charge clients for online bill instalment.

  • Transfer of Money

In the current online banking system, a customer can easily transfer funds from their bank to other’s account.  Online Banking user can also transfer money to some other countries. All a user need to do is to mention the account number of a payee with his branch name. The time for money to transfer from one account to other generally depends on the type of transfer (Instant or Later).

Customers who are using credit cards can easily manage their cards, pay the bill, or lodge a service request with just on few clicks.

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The Pros and cons of internet banking: A short review

Assuming you are new to e-banking, there is no wondering if you want to save your time by using internet banking. Indeed, tons of people get benefits from internet baking but it is also a bitter truth everything comes with pros and cons. So, before adopting anything you should know all about it. Hence, we are going to explain the merits and demerits of internet banking.

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Let’s start with the merits first,

Pros of Internet banking

  • Clients can exchange any amount from one account to the next or another bank’s account. Clients could send money to anyplace in the World. When you enter your account, you need to make reference to the payer’s account number, its bank, and branch. The money transfer will occur either at the same time off in a day or two. While in a conventional technique, it takes around three business days.
  • With an online bank, you can take up to 95 per cent of your business on the internet. Apart from getting to your bank statement and account information, you can easily transfer money, utility bills, or apply for a card. The biggest online banks have simple platform access, so you simply need to associate with your most loved classes. You will be coordinated to the fitting page in a brief timeframe with the fundamental information.
  • Web-Based banking enables you to save a lot of money. When you utilize your services of internet banking, most banks ordinarily charge a lower expense. You additionally get the chance to know more interesting services and products by traditional banks.
  • Online banks offer top security to guard their user. They utilize the most recent encryption method to stop false activities, for example, identity theft and phishing. However, when it is given, users need to complete their role and also have recent antivirus, antispam, firewall and anti-spyware software installed on their PCs.
  •  The capacity of online banks to offer higher returns and more services is because of the way that they have less overhead cost.

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Cons of  Internet Banking

Online banking services give various advantages to the user. However, regardless of its favourable circumstances, there are some users who are looking to know its downsides as well. Regardless of the expanding popularity of online banking, it can not be expected that a few users are as still care about making monetary transactions.

  • Numerous individuals are hesitant to utilize Internet banking because of security risks. They still believe that online banking can lead to fraud after watching the news that hackers have done online robbery. But the reality is that banking institution that offers internet banking used to keep security on top priority. As these banking institutions respects its clients. They generally utilize the most innovative security to ensure their sites.
  • There are many people who still don’t trust in online banking. For new clients who have just acknowledged money-related transactions for some time. They may even now feel hesitant whether they have made the best decision or not, whether they have tapped on the correct key or not.
  • The user who is using online banking for the first time, directing through the Internet Bank site can feel the complexity.  It might require more time to open an account since certain websites usually request identification like personal identity, photo proof which can change the mind of a customer.
  • Not every person appreciates the advantage of having a steady and quick web association at home. Notwithstanding having a PC or PC, the utilization of free web at home is an essential condition for electronic banking. Individuals can generally utilize open PCs with web get to. However, the wellbeing of open PCs is dependably a worry.

From your PC you can check the balance of the a/c, make a purchase, apply for a loan, and get other a/c data. As of late, web banking is expanding in creating nations. The Things about have been done to see issues identified with their concept of e-banking throughout the years. Huge numbers of studies stress over other developing nations.

What do we conclude about the concept of e-banking?

In the end, it can be concluded that with the growth of wireless communication and internet technologies in the current decade, the nature and structure of financial and banking services have changed a lot.  If we talk about technological wonders, internet banking is the latest and prior to all, which included the utilization of the internet for the delivery of services and products of online banking. We also got to know that, now banking is just not restricted to going to branch for all the baking activities like cash deposit and withdrawal. Therefore, the concept of e-banking is an ideal rather than an exception in many developed countries. It is the cheapest way to provide banking services. For more guidance in your academic and scholarly topics, you can take help from assignment help, it helps in guiding you on how to write the best research reports, programming assignment help, essays, articles, and other academic topics that you will get.