Economics
What is Online Banking
Online banking refers to the digital platform provided by banks for customers to conduct financial transactions over the internet. It allows users to check account balances, transfer funds, pay bills, and access other banking services without visiting a physical branch. Online banking offers convenience, accessibility, and often enhanced security measures for managing personal finances.
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6 Key excerpts on "What is Online Banking"
eBook - ePubDigital Finance, Bits and Bytes
The Road Ahead
- Vasant Chintaman Joshi(Author)
- 2020(Publication Date)
- Palgrave Macmillan(Publisher)
© The Author(s) 2020 V. C. Joshi Digital Finance, Bits and Bytes https://doi.org/10.1007/978-981-15-3431-7_5Begin Abstract5. E-Banking
End AbstractVasant Chintaman Joshi1(1) General Manager (Retd.), Bank of India, Pune, Maharashtra, IndiaVasant Chintaman JoshiThe term “Electronic Banking” (E-banking) could be defined as remote banking services provided by authorized banks or their representatives through devices operated under the bank’s direct control and management or under an outsourcing agreement. In other words, E-banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting his/her branch and includes the systems that enable customers of such banks to access accounts, transact business, or obtain information on financial products or services through a public or private network.A remote banking service generally covers under its umbrella the following:- Dedicated banking service for which the customer has explicitly registered and is so authorized
- Service supplied using devices that are under the control of the provider
- Service which demands the authentication of the customer
E-finance could be used as a generic term to cover banking, insurance, and so on. E-finance very broadly refers to financial services whether delivered online or through other remote mechanisms. They have spread very quickly, almost in all the countries across the globe. There may be differences among countries regarding the readiness and quality of infrastructure. There could even be questions regarding the regulatory norms. But there is considerable commonality and conversion in the spread of E-finance . In this context, it might also be useful to the readers if we define the term “E-money”. E-money could broadly be defined
eBook - ePub- David VanHoose(Author)
- 2011(Publication Date)
- Routledge(Publisher)
Issues that online trading pose for financial market regulators: The primary regulators of trading in securities, foreign exchange, and derivatives markets are the Securities and Exchange Commission, the Commodity Futures Trading Commission, and state authorities. There currently is no consensus among these regulators on adapting uniform rules for financial trading in the electronic marketplace. One perspective emphasizes the importance of strict regulatory oversight to risk containment in financial markets. According to another view, however, efforts to restrain online trading and related innovations in financial markets can prevent the achievement of greater market efficiency. Thus, proponents of this view argue that financial regulators should respond to online innovations that actually cause problems for investors.- What financial institutions do, and factors that led them to offer online banking services: Many financial institutions function as intermediaries that address problems arising from asymmetric information. These include adverse selection, or the potential for the least creditworthy borrowers to be the most likely to seek to wish to borrow, and moral hazard, or the possibility that an initially creditworthy borrower may become less creditworthy after receiving a loan. A number of financial institutions also take advantage of economies of scale by spreading costs of managing funds across large numbers of savers. Several forms of banking services offered by financial institutions can be performed online, including bill consolidation and payment, account transfers, and loan applications, and ways to transfer on the Internet are being developed. The main incentives for financial institutions to offer online banking services are to earn fee income from providing these services and to try to offset competition from other online banking-service providers.
- Current trends in online banking
eBook - PDF- Jessica Keyes(Author)
- 1998(Publication Date)
- Auerbach Publications(Publisher)
By choosing an innovative imaging solution, and using it along with complementary storage technology, many financial institutions will find that the difficult and time-consuming task of handling statements, canceled checks, and other records of account activities will become much easier. 33-7 Chapter 34 Internet Banking: Leveling the Playing Field for Community Banks Kim Humphreys THE IMPACT OF NON-BANK COMPETITORS entering the financial services industry over the last several years has been significant. As a result, the banking industry has had to reevaluate its role in the payment system and redefine goals in order to retain and grow its customer base. With the ob-jective being to retain current customers and attract new ones, banks are looking to provide improved customer service and convenience. Internet banking offers a viable delivery channel, allowing banks to meet these goals without increasing operating costs. The Internet also presents the opportunity to level the playing field for banks of all sizes, an increasingly significant benefit in view of the trend toward megamergers taking place in the banking industry today. By the year 2000, home banking and online brokerage will more than double current usage to exceed five million households, predicts Meridien Research of Needham, MA. Every day more than a thousand companies of all types, including financial institutions, go on line. What is happening is a revolution in the way individuals and companies do business. And unlike other technological advancements within the marketplace, the Internet revolution is being driven by the consumer. It took nearly 30 years for technology like ATMs to be widely accepted by the public, and screen phone technology never really took off. Even the first attempts at direct-dial PC home banking by some of the larger banks in the middle 1980s met with little success. Internet banking is different-0-8493-9981-51991$0.00+$.50 0 1999 by CRC Press I..LC 34-1
eBook - PDF- S. Janssen(Author)
- 2009(Publication Date)
- Palgrave Macmillan(Publisher)
It could be conjectured that a clear legal definition of a bank and other financial terms as found in German law could impede the flexibility which appears necessary in the face of the ever faster changes in economic reality. Therefore, the much deplored absence of a clear definition of a bank in the United Kingdom and the tradition of common law (see previous remarks by the Review Committee on Banking Services Law) may have contributed significantly to the faster adaptability of the British authorities. Whichever legal system seems to better adjust to the fast changing economic reality, either tends to react to economic reality, although its reactions may in return have repercussions for that economic reality. Thus, an economic definition What Is a Bank? 15 of a bank should be applicable across borders. The next section outlines the widely accepted microeconomic definition of a bank. 2.6 Microeconomic definition of a bank The preceding sections showed that the varying banking traditions in Britain and Germany prompted different organisational structures in the banking sector. While in the United Kingdom a dual structure with clear- ing banks (DTIs) and merchant banks (NDTIs) prevailed for many years, banks in Germany have traditionally been organised as universal banks. One important issue which emerges from these different organisational forms are the capital adequacy requirements for investment banks and retail banks. The different capital requirements for different types of banks pin- point the most prominent aspect of banking business, namely dealing with risk, which is defined as the deviation from the expected, that is the vari- ance of possible outcomes (Black, 1997, pp. 406–409). Investment banks assist third parties in the management of risk. The bulk of an investment bank’s revenues comprise non-interest income, such as commission fees and trading results, which are not determined by its bal- ance sheet structure.
eBook - ePubCross-border Electronic Banking
Challenges and Opportunities
- Chris Reed, Ian Walden(Authors)
- 2013(Publication Date)
- Informa Law from Routledge(Publisher)
Chapter 6 Consumer Electronic BankingI. Introduction
The law relating to consumer electronic banking was until recently little more than a specialised branch of consumer law, which concentrated on account terms and conditions and their controls through sectoral legislation and self-regulation.1 This is because, in spite of the fact that banks2 were early adopters of computing technology, its use for communications with customers remained restricted for a surprising length of time. In the last few years, and in particular with the widespread adoption of the Internet by consumers as well as businesses, the consumer electronic banking scene has changed radically.It is now possible to detect six stages of development in consumer electronic banking:- The provision of facilities for account transactions through technology which is owned and controlled by the banks—e.g. ATMs and magnetic stripe cards. This stage began nearly 30 years ago.
- Allowing limited dial-up access to consumer customers, using software supplied by the bank, from the early 1990s.3
- Permitting access via open networks (primarily the Internet) and open software (e.g. Web browsers such as Netscape and Internet Explorer).
- Allowing accounts to be opened via the Internet.
- Providing facilities for non-account-transfer payment through electronic cash products.
- Selling other financial products via the Internet.
The banks had undertaken stages 1 and 2 at the time the first edition of this book was produced, but at that time the remaining stages were only possibilities for the future. Moving to these later stages would have removed the banks’ near-complete control of customer communications,4
eBook - PDFThe Internet Supply Chain
Impact on Accounting and Logistics
- D. Chorafas(Author)
- 2001(Publication Date)
- Palgrave Macmillan(Publisher)
The concept of the loans book itself will change to become online and inter- active. Most affected will be the databases at the two sides of Figure 5.5. All of them must be updated in real-time, as well as seamlessly accessed. This is better because real-time continuous settlement will be instrumental in driving out inefficiencies. To a considerable extent, inefficiencies will be driven out of industry after industry, through Internet-based transactions; but we are not yet there. What can be done to beef up the value-added aspect of banking services being offered (and to be offered) to Internet-based online accounts? To answer this query in a factual manner we should appreciate 112 Developments in the Global Economy that online services for investors can be distinguished into three main classes: • financial information; • aid to choices; and • aid to asset management. CLIENTS PRODUCT LINES CREDIT RISK MARKET RISK OPERATIONAL RISK SALES CHANNELS LOANS BOOK GENERAL ACCOUNTING BALANCE SHEET P&L STRGL IAMIS VIRTUAL B/S LOANS OFFICER BRANCH MANAGER REGIONAL CHIEF CHIEF CREDIT OFFICER CREDIT COMMITTEE INPUT FROM AND TOTHE FIELD Figure 5.5 Internet banking will force the integration of the loans book within the landscape of other databases Selling Banking Services on the Internet 113 There is no lack of financial information services on the Internet. There exist today some 70 000 sites (!) which offer news, commentaries and/or quotations. They get most of their value by expanding the geographic coverage of Internet surfers. Can there be value differentiation in financial information? A clear trend developing in the USA is the effort directed at upstaging a site’s credibility. Also in America, credit institutions who act as financial information providers have started offering some of the fruits of their bricks and click strategy without charge. This is not yet the habit in Europe, where companies try to make the consumer pay for the services he gets.
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