The banks are a type of financial institution whose main purpose controlling power and properly manage their clients ‘ money through a number of different services. Today, thanks to technology and innovation, it is possible to enjoy electronic banking , a virtual platform that gives bank customers access to process a series of procedures .
The electronic banking is a service type telematics offered by different banking institutions in order to allow customers to carry out their banking operations and transactions in real time and in a secure , independent and quickly without having to go to the bank office .
- Characteristics of electronic banking
- What is it for
- How electronic banking works
- Importance of electronic banking
Characteristics of electronic banking
Among the most notable characteristics that are present in electronic banking are the following:
- It can be used by both individuals and companies .
- They are very easy and comfortable to use.
- It gives the client the option to carry out the same banking operations that they would do in a physical branch .
- It can be used anywhere in the world and at any time of the day.
- It has a series of alerts which offer greater security to customers.
- Most customer banking can be paid for using the internet and electronic banking.
- It gives the ability to configure payments by having the money automatically debited from the account.
- They provide technical customer support and personalized service .
- They work effectively and quickly giving your customers more comfort.
- It is also known by the name of online banking , e-banking or virtual banking .
There are several types of electronic banking, among them we mention the following:
- Internet Banking : this is the kind of banking service that makes it possible to perform various types of financial and non – financial transactions through the use of the internet either from a cell phone or computer laptop or desktop.
- Mobile banking : This type of electronic banking works for mobile devices and is used to carry out different types of banking transactions. You just need to download the application and start using it. In it you can transfer funds, pay services and credits, pay bills, and more.
- ATM : ATM is also a type of electronic banking and is in fact one of the most popular. In it it is possible to withdraw funds, deposit money, you can change the PIN of debit cards.
What is it for
Electronic or online banking is a type of online bank that is used to carry out a series of different banking operations without the need to attend the banking institution to carry them out. In it you can make inquiries about balances, deposits, account payments or entities that provide services, you can make transfers of funds and can even be used to request credits and credit cards.
How electronic banking works
The first step to make electronic banking work is to download the application if you use a cell phone or open the banking page on the web . Subsequently, you must choose a username as well as a secure password . After entering the bank’s page, the client will be able to look for the different options to make their payments or any other type of banking activity that they need to carry out, such as checking balances or making money transfers.
Regarding security, it is important to mention that electronic banking has brought, in addition to many advantages, a series of acts related to cybercrime that takes advantage of small technological failures and excess confidence on the part of customers to have access to bank accounts of customers. customers.
Some banks require the use of a device or virtual card by means of which they issue a key , with this, it is possible to increase the security of the account notably preventing it from being hacked. It is a form of authentication for the client that gives greater security at the same time.
To have good security and keep money safe, it is important that a series of recommendations given by banking entities are complied with, including the following:
- The passwords of the access accounts, nor the access code or pattern should not be shared at any time with anyone, not even with people who work in banks.
- It is recommended that the automatic lock option be activated when using the mobile device.
- Public networks should not be used to access banking pages or applications as they are open and there is a greater possibility that data can be trafficked.
- It is important not to choose to save passwords on mobile phones or computers.
- You should never give personal or financial information over the phone , this is generally a scam.
- Reporting to the bank in case suspicious movements are observed in the online account is extremely important.
- When you are going to enter the bank’s page it is important to do it from the address bar of the browser starting with “https”, you should never put the bank’s name directly in the Google bar.
There are many advantages that bank customers can have thanks to electronic banking, the most important of which are:
- They provide greater efficiency in carrying out operations since they can be carried out at any time of the day using any type of device that has a good internet connection.
- They make banking more simple as websites and mobile apps are very easy to use .
- In general , they save money as they do not charge commissions for the transactions carried out.
- They are easy to access , anyone can open an account in an online bank and also have no cost to the customer.
- They also promote cost reduction for the bank , as they can save on personnel and facilities.
- All transactions can be carried out from the comfort of home , work , or even if the person is traveling .
Electronic banking also has a series of disadvantages that must be taken into consideration, among them we mention the following:
- There is mistrust on the part of customers because being connected to the internet, some data confidentiality problems may arise .
- They are exposed to various types of computer viruses and scams .
- An important distance is created between the customer and the banking institution .
- When there are internet connection problems , electronic banking may not be able to function properly.
- For customers who do not have any knowledge of the internet, it can be a bit difficult to use.
Importance of electronic banking
Electronic banking is an innovative invention that has turned out to be of great importance for both the customer and the bank . Thanks to it, it is possible to carry out many of the banking transactions that previously could only be carried out in the physical bank. It is one of the best means for users to have immediate access to their accounts , either to obtain information or to make their payments .
Some examples of electronic banking are:
- Online banking
- Mobile banking
- Credit cards
- Mobile wallets
- Debit cards