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.
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