We’ve turned to another dimension of banking with E-banking. We never stop evolving every single day in terms of digitization. One such evolution is the E-banking services that we have today. So, here, let’s look in-depth at E-Banking and the types and importance it holds today.
What is E-Banking?
E-banking/Electronic banking, as the name implies, allows you to conduct financial transactions and other operations online. Say goodbye to banking headaches, long lines, and long wait times with E-banking. You wish to send money. You wish to alter the PIN on your ATM. You want your mini-statements. Whatever you want to call it. All of this is only possible due to E-banking.
For instance, let’s just say you hold an account with the State Bank of India. If you use a UPI or if you know how to open net banking in SBI, then these services come under E-Banking.
What are the Different Types of E-Banking?
Let’s look at the many sorts of E-banking.
1. Internet Banking: An online banking platform allows clients to access their banking accounts, check account activity, make payments, and transfer money.
2. Mobile Banking: Mobile banking is a sort of e-banking that allows consumers to use a smartphone or other mobile device to access their banking accounts, check account activity, make payments, and transfer money.
3. ATM Banking: ATM banking is a sort of e-banking in which clients use an automated teller machine to access their banking accounts, see account activity, make payments, and transfer money (ATM).
4. Direct Deposit: A sort of e-banking that allows consumers to have their paycheck, Social Security, or other money deposited straight into their bank account is direct deposit.
5. Electronic Funds Transfer (EFT): EFT is a sort of e-banking that enables users to make payments and move money electronically.
6. Electronic Bill Payment: An example of e-banking is electronic bill payment, which allows clients to pay their payments electronically.
7. Internet Investing: A sort of e-banking that allows clients to buy investments such as stocks, bonds, and mutual funds online.
Also Read: Why Does the Banking Sector Need AI to Establish Success?
What are the Perks of Using E-Banking?
Consumers that use e-banking services can save a significant amount of time and money. These services help improve the efficiency of client relationship management (CRM).
- Convenience: Making transactions and payments with e-banking has become very convenient without the need for visiting a bank or ATM. Keeping track of accounts, and non-transactional activities, such as ordering a cheque book online, updating accounts, and then inquiring about interest rates on various financial products, are greatly simplified by E-Banking services.
- Mobility: In recent years, e-banking has advanced with the introduction of mobile Internet banking, which allows consumers to complete financial transactions while on the go and offers them unrestricted mobility.
- E-Banking transactions: It can be conducted 24 hours a day, seven days a week, without the requirement for a physical visit to the bank. This saves time and increases comfort.
- Better Rates: This means that a portion of the bank’s savings can be passed on to customers in the shape of greater deposit interest rates and reduced loan interest rates. Most banks provide low- or no-deposit accounts, as well as lower penalties for early withdrawal of Fixed Deposits, to encourage users to use e-banking. This type of banking requires less physical effort and yields bigger profits.
- Discounts: Another big advantage of using online banking services is that users can take advantage of a variety of discounts. When people use their debit or credit cards, they can get a range of discounts at retail stores.
- Management of funds: Before performing any online transaction, customers can view their transaction history for multiple accounts and undertake their own “what-if” analysis. As a result, greater financial management is now achievable.
- Services: Technology has made it extremely simple for both the bank and the customer to obtain information by just logging on to the bank’s website. E-services include financial planning capabilities, functional budgeting and forecasting tools, loan calculators, investment research tools, and equities trading platforms. In addition, most banks provide online tax forms and tax preparation services.
Mobile and Internet banking can help you take charge of your financial life by providing tools and services that traditional banking methods may not provide. Yet, digital banking can provide benefits other than banking by linking you to a community and banking options tailored to your goals and needs.
Recall that digital banking is not an all-or-nothing proposition. You can bank digitally part-time and still visit a branch, ATM, or bank by phone to take advantage of its benefits. What matters most is that you pick a solution that works best for your banking habits and needs.