Electronic (e-banking) or online banking is the way to go in financial institutions which has replaced the brick and mortar banking. It is a channel that banks are exploiting profitably. Financial institutions have to be alert and aware of new developments that affect e-banking and they have to be on the front pushing for the countries to develop the networks and internet connectivity. Staff and customer training is an urgent agenda item to make sure that the channels are used effectively and economically. E-banking products are mobile, short message (SMS) and telephone banking, Electronic funds transfers and Internet, ATM and POS banking, self-service (PC) and interactive TV banking and virtual or branchless banking.
The benefits listed below have made brick and mortar banking give way to online banking.
- You are able to transact twenty fours a day every day. For account holders who have accounts in other countries, this e-banking product offering is a very good solution. The customer can check their account information and transactions from anywhere in the world at any time of day or night.
- The customer is able to transfer funds from their account to someone else or another bank. You, the customer are able to transfer funds between your own accounts in the same bank. This is a solution for enabling savings and funds transfer occurs from transaction account to the savings account when required. Repeat transactions that run on the same dates are set to automatically run on online system platform.
- You are able to view your account balances, download and print statements. This makes reconciliation of your accounts faster and more convenient. You are able to tell when a fraud has affected your account and report the deed faster than having to wait for the monthly or quarterly statement.
- You are able to view your banks' daily exchange rates. You are able to make informed choices on the exchange rates specifically for customers who do international trade. The bank advertises new products on the e-banking channel. The loan repayment accounts and mortgage interest calculations are also arrayed in e-banking channel.
- E-banking is very easy to set up. Since you already have an account with the financial institution, you just have to complete forms to ask for this product. In some banks the e-banking account is offered as a bonus depending on the account held by the customer. You will find online or e-banking user-friendly and secure. A personal identification number (PIN) is used. You have user support from highly trained and experienced service teams in case of any challenges in using the service.
It is true to say that brick and mortar banks are on their way out as e-banking or online banking has increased in popularity.