Banking & E-Banking and Internet Banking

Introduction to Banking

Banking is a financial system that accepts deposits from the public, creates credit, and lends money to borrowers. It operates under a well-defined set of regulations to ensure the safety and stability of the financial system.

Traditional Banking

Traditional banking refers to the physical aspect of banking services which includes face-to-face transactions, paper-based documentation, cash transactions, and using physical infrastructure like bank branches and ATMs.

Key Features

• Branch Services: Customers visit to perform transactions, get advice, or manage accounts.
• Paper-based Transactions: Cheques, deposit slips, and bank statements.
• Personal Interaction: Direct contact with bank representatives for services.

Electronic Banking (E-Banking)

E-banking encompasses all financial transactions carried out electronically. This includes various technologies like telephone banking, mobile banking, and ATMs.

Forms of E-Banking

• Telephone Banking: Conducting transactions over the phone.
• ATMs: Automated Teller Machines for cash withdrawals and deposits.
• Mobile Banking: Using mobile devices to access banking services.

Advantages of E-Banking

• Convenience: Services are available 24/7.
• Efficiency: Faster transactions and reduced need for physical visits.
• Accessibility: Remote banking services for customers.

Internet Banking

Internet banking, or online banking, allows customers to conduct financial transactions on a secure website operated by their bank.

Functionality

• Account Management: View balances, statements, and recent transactions.
• Transfers and Payments: Send money and pay bills online.
• Customer Service: Online support for banking inquiries.

Security Measures

• Encryption: Secure transmission of data.
• Authentication: Multiple layers of security checks.
• Monitoring: Continuous monitoring for fraudulent activities.

Internet banking has revolutionized the banking industry by providing a platform for convenient and efficient financial transactions, aligning with the digital era's demands.

Conclusion

The evolution of banking from traditional to e-banking and internet banking reflects the industry's adaptation to technological advancements. These changes aim to enhance user experience, accessibility, and security in the financial sector.