When was the last time you went to a physical bank branch to modify your personal information or registered mobile number? When was the last time you made any kind of financial transaction at a bank? If you can’t think of a response, e-banking is to blame!
What Is E-banking, Explained
You've experienced the advantages of e-banking if you've ever made an online money transfer, updated your ATM PIN via an app, or received an email copy of your account statement.
We may easily complete financial transactions and other Internet operations with the help of e-banking or electronic banking. The Internet has greatly improved the efficiency and accessibility of banking. Let's talk about how.
What Services Does Online Banking Offer?
E-banking includes using ATMs, swiping debit and credit cards, and making online money transfers. The list of different e-banking service types available now is as follows:
Internet and mobile banking
You are using internet banking whether you transfer money via the website or mobile app of your bank.
With merely a dependable internet connection, users of online banking can easily pay bills, view personal information, and perform a lot of other tasks! It is referred to be mobile banking if you perform all of these tasks via your bank's mobile application.
ATMs
Do you urgently need to deposit or withdraw cash? In only a few seconds, Automatic Teller Machines (ATM) enable you to accomplish this smoothly. The earliest type of digital banking to be introduced was through ATMs. You just need to input your ATM PIN, the amount to be withdrawn, and your card or account details, and you're good to go.
Debit or Credit Card?
It's time to pay for the clothes you're purchasing in the mall. You ping after swiping your card! The deal has been completed successfully!
This transaction would have taken a long time and required tiresome tasks like counting coins, calculating balance, and exchanging currency before debit cards.
Transactions can now be finished in a matter of seconds thanks to the introduction of debit cards. Users of credit cards can take advantage of several incentives in addition to being able to borrow money up to a pre-approved limit.
What Is Electronic Data Interchange?
Electronic Data Interchange, or EDI, is a computerized method of sending money between organizations.
To reduce errors in manual processing, EDI, a standard electronic format, is increasingly being used to replace firm paperwork such as purchase orders and invoices. It lowers transaction costs throughout a supply chain in this way.
A digital method of transferring money is called an electronic fund transfer, or EFT.
There are a few different payment methods available to you when you transact online.
- Real-Time Gross Settlement (RTGS)
- Immediate Payment Service (IMPS)
- National Electronics Fund Transfer (NEFT)
Are Internet Banking and E-banking the Same Thing?
Any digital fund transfer method is under the direct purview of electronic banking, or "E-banking."
Electronic banking includes, for instance, mobile banking, internet banking, and various online fund transfer methods including RTGS, IMPS, and NEFT.
There was a time when customers and businessmen needed to visit banks hundreds of times just for routine financial transactions. Obtaining basic personal account details and other financial services, such as loans and investments, were very time-consuming because they were not easily accessible.
The development of e-banking has changed people's lives. The convenience of having banking at our fingertips is amazing, and we no longer have to deal with the inconvenience of traveling to banks for even the smallest of needs.
Types of E-Banking
Many e-banking branches have been established as a result of the financial and banking industries' integration of computers and the Internet.
- Online Banking: Through an online platform, clients can access their banking accounts, check account activity, make payments, and transfer money. This is a form of electronic banking.
- Mobile Banking: Using a smartphone or other mobile device, consumers can access their banking accounts, check account activity, make payments, and transfer money through mobile banking, a sort of online banking.
- ATM Banking: This kind of online banking enables users to check account activity, make payments, transfer funds, and access their banking accounts through automated teller machines (ATMs).
- Direct Deposit: Direct deposit is an electronic banking feature that enables users to have their money, such as Social Security or paychecks, transferred straight into their bank account.
Electronic Funds Transfer (EFT): One form of online banking that enables users to move money electronically is electronic funds transfer (EFT).