The main reason behind this success is the numerous benefits it can provide, both to the banks and to customers of financial services. For banks, it can provide a cost effective way of conducting business and enriching relationship with customers by offering superior services, and innovative products which may be customized to individual needs. For customers it can provide a greater choice in terms of the channels they can use to conduct their business, and convenience in terms of when and where they can use E-banking.
The evolution of electronic banking (E-banking) started with the use of automatic teller machines (ATMs) and has included telephone banking, direct bill payment, electronic fund transfer and online banking. According to some, the future direction of E-banking is the acceptance of mobile telephone (WAP-enabled) banking and interactive-TV banking. However, it has been forecast by many that online banking will continue to be the most popular method for future electronic financial transactions. Electronic funds transfer (EFT), refers to the computer-based systems used to perform financial transaction electronically.
The term is used for a number of different concepts including electronic payments and cardholder-initiated transactions, where a cardholder makes use of a payment card such as a credit card or debit card. Card-based EFT transactions are often covered by the ISO 8583 series of standards. Keywords: E-banking, E-commerce, E-banks, E-marketing. Introduction: In order for customers to use their banks online services they need to have a personal computer and Internet connection. Their personal computer becomes their virtual banker who w...
ill assist them in their banking errands.
Examples of E-banking services that customers can get online are: ? Attaining information about accounts and loans, ? Conducting transfers amongst different accounts, even between external banks, ? Paying bills, ? Buying and selling stocks and bonds by depot, ? Buying and selling fund shares39 These services that are offered by E-banking are changing and being improved because of the intense competition between the banks online. Banking industry must adapt to the electronics age, which in its turn is changing all the time.
EFT transactions require authorization and a method to authenticate the card and the card holder. Whereas a merchant may manually verify the card holder’s signature, EFT transactions require the card holder’s PIN to be sent online in an encrypted form for validation by the card issuer. Other information may be included in the transaction, some of which is not visible to the card holder (for instance magnetic stripe data), and some of which may be requested from the card holder (for instance the card holder’s address or the CVV2 security value printed on the card).
EFT transactions are activated during E-banking procedures. Various methods of E-banking include: ? Telephone banking ? Online banking ? Short Message Service (SMS) banking ? Mobile banking ? Interactive-TV banking. Independent of location or time, you can execute your payments and stock market orders and you get detailed information on your accounts and custody accounts. What is E-banking? In its very basic form, E-banking can mean the provision of information about a bank and its services via a home page on th
World Wide Web (WWW).
More sophisticated E-banking services provide customer access to accounts, the ability to move their money between different accounts, and making payments or applying for loans via e-Channels. To understand the electronic distribution of goods and services, the work of Rayport and Sviokla (1994; 1995) is a good starting point. They highlight the differences between the physical market place and the virtual market place, which they describe as an information-defined arena. In the context of E-banking, electronic delivery of services means a customer conducting transactions using online electronic channels such as the Internet?
Many banks and other organizations are eager to use this channel to deliver their services because of its relatively lower delivery cost, higher sales and potential for offering greater convenience for customers. But this medium offers many more benefits, which will be discussed in the next section. A large number of organizations from within and outside the financial sector are currently offering E-banking which includes delivering services using Wireless Application Protocol (WAP) phones and Interactive Television (iTV).