E-Banking

Electronic Banking Definition

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The concept of electronic banking systems began when the first ATM machines were installed.

Electronic banking, also known as e-banking, virtual banking and online banking, is a service that allows customers to access their bank information, conduct financial transactions, make deposits, withdrawals and pay bills through the Internet without having to physically visit their bank. It provides the convenience of accessing banking facilities from the comfort of their home or office.

History

The concept of electronic banking systems began when the first automated teller machines (ATMs) were installed in the 1970s. ATM machines allowed deposits to be made from remote locations—a convenience for customers who otherwise would have had to withdraw cash personally from their bank. According to D. K. Murthy and K. R. Venugopal in the book “Indian Financial System,” the advantages offered by ATM machines quickly spilled over to encompass other areas of bank services, computerizing manual systems for greater efficiency and time savings. The concept behind ATM machines gave rise to smart cards, intranet and Internet banking, EFT (electronic funds transfer) and POS (point of sale) systems, phone banking and other electronic services.

Registration Information

Electronic banking facilities can be accessed by existing bank customers and new customers alike. Existing customers are typically required to forward their request and inquiries to their personal relationship manager or bank support staff. To access electronic banking features in the United States, new customers are required to provide their Social Security number. A customer is issued a personal identification number (PIN) and access details once his Internet account is verified.

Features and Services Provided

Electronic banking services and solutions fall into a few broad categories, including transactional services, non-transactional services,...