Electronic banking is a method of banking in which the customer can enjoy banking services without a physical presence in the bank and using secure intermediaries, in other words, using advanced technology of networks and telecommunications to transfer resources (money) in the banking system.
Online Banking allows the customer to perform a wide range of funds and information transfers electronically through the Bank Amel website. Online banking has different levels. The higher the level of complete electronic banking, the less manual operations, centralized computer systems, wider accessibility, fewer time and space constraints, and ultimately the greater the security of banking information.
Citizens are using banks to save their money, and now internet banking is helping people save their time using virtual banks. Time is the most precious human asset that can never be compensated and returned.
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Save time, reduce non-operating costs of banks and economic institutions, increase productivity, reduce social problems such as domestic and foreign travel, and as a result, reduce the opportunity cost and boost virtualization, and liberalize banks in providing some services and opportunities to offer new products. Online banking is like traditional banks, except that the customer does not go directly to the bank and does his banking with a personal computer connected to the Internet.
The benefits of online banking are examined from the perspectives of the customer and the financial institution.
From the customer’s point of view, its costs are saved; Save time and access to multiple channels for banking.
But from the financial institution’s point of view, we can point to features such as creating and increasing the reputation of banks in providing innovation, retaining customers despite the spatial changes of banks, creating opportunities to seek new customers in target markets, expanding the geographical area of activity and establishing full competition.
Focusing on new distribution channels, providing improved customer service, and using e-commerce strategies are the most important benefits of online banking. Equal competition, retention, and customer acquisition are among the benefits of e-banking in the short term, less than a year.
Integrating different channels, managing information, expanding the range of customers, directing customers to the right channels with the desired features, and reducing costs in less than 18 months or in the medium term.
Reducing transaction processing costs, providing services to target market customers, and generating revenue are also long-term benefits of e-banking.
Different Types Of Online Banking:
- Mobile-based banking
- Bank phone
- Internet bank
- ATM-based banking
- Sales based on sales terminals
- Electronic branch-based banking
Internet banking means performing banking and financial transactions using the Internet and its difference from other financial transactions of networks in the type of network that is used, that is, in Internet banking, the Internet is used as a global network. In general, the ranges of financial tasks that can be accessed through the Internet are:
- View accounts and bills
- Payment invoices
- Money transfer between accounts
- View the order in which accounts are processed
- View transactions
- Arrange checklists
Online Banking Services
Internet Bank has provided facilities such as receiving balance online, transferring money between all accounts in the bank, viewing bills, etc. to each bank’s customers. It is also possible to block lost or stolen cards by using these services.
Online Banking Services Are Reviewed At Three Levels And Include The Following:
In electronic banking services, information is the first level. In this section, the database introduces its banking services and operations through public or private networks.
At the interactive level of online banking services, it provides the possibility of a confrontation between the banking system and the customer. The risk in e-banking services is greater than the traditional method and requires appropriate tools to control users’ access to the banking network.
In the transaction part, the customer must use a controlled security system to perform activities such as issuing checks, transferring funds, and opening an account. This level of e-banking services has the highest risk.
Reasons To Visit An Online Banking:
The most obvious advantage of online banking is convenience. Unlike local banks, which are only open at certain times of the day, online banking is available whenever you need it.
- Direct control over your transactions:
In Online Bank, you can go directly to your bank’s website to do your transactions. Using Online Bank, you can pay bills and transfer, open a new account, change your account type, request a credit card increase.
- Reduce bank charges and further interest rates:
Reducing overhead costs associated with the virtual nature of online banking enables banks to provide more incentives for online banking with them.
- Advanced security:
Online banks guarantee your security and use a wide range of security tools to protect your information. If for any reason your account becomes a victim of direct financial loss, if you inform your bank, it will be refunded in full.
- Access to everything all in one place:
Using online banks you have access to the following:
- The current balance of each of your bank accounts in that particular bank (such as checking and saving)
- The current balance of each account borrowed at that particular bank (such as credit cards)
- Account transaction date
- Waiting for deals
- All payment invoices and bill payment dates.
In e-banking, financial services and information are electronic and there is no need to be physically present in the branch for the customer.
If people used to store their money in banks, using virtual banks would also save people time. Time is the most valuable human asset that can not be recovered in the short life of man on earth.
Some of the advantages of virtual banking are:
- Saving people’s time
- Reduce non-operating costs and overhead of banks and economic institutions and increase productivity
- Reduce social problems such as domestic and foreign travel and thus reduce opportunity costs
- Liberalization of banks in providing some services
- Create opportunities to introduce new products.
Online banking will play the role of current banks, with the difference that with the establishment of this bank, instead of the customer directly referring to the bank, he can easily do banking through his personal computer.
“If you have any feedback about what should I look for in an online bank that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”
NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.