Introduction of E-banking Online banking, banking, also known as internet banking, banking, e-banking or e-banking or virtual banking, banking, is an electronic an electronic payment system that system that enables customers of a bank or bank or other financial institution to institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system banking system operated by a bank and is in contrast to branch to branch banking which banking which was the traditional way customers accessed banking services. To access a financial institution's online banking facility, a teacher with internet access would need to register with the institution for the service, and set up a password and other credentials for credentials for customer verification. The credentials for online banking is normally not the same as for telephone or telephone or mobile banking. banking. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. Technically, the customer number can be linked to any account with the financial institution that the customer controls, though the financial institution may limit the range of accounts that may be accessed to, say, cheque, savings, loan, credit card and similar accounts. The customer visits the financial institution's institution's secure website, website, and enters the t he online banking facility using the customer number and credentials previously set up. The types of financial transactions which a customer may transact through online banking are determined by the f inancial institution, institution, but usually includes obtaining account balances, a list of the recent transactions, electronic bill payments and payments and funds funds transfers between transfers between a customer's or another's accounts another's accounts.. Most banks also enable a customer to download copies of bank statements, which can be printed at the customer's premises some banks charge a fee for mailing hard copies of bank statements!. "ome banks also enable customers to download transactions directly into the customer's accounting software. The facility may also enable the customer to order a cheque book, statements, report loss of credit cards, stop payment on a cheque, advise change of address and other routine actions. Today, many banks are internet#only institutions. These $virtual banks$ have lower overhead costs than their brick#and#mortar counterparts. counterparts. %n the &nited "tates, many online banks are insured by the Federal eposit %nsurance Corporation F%C! and can offer the same level of protection for the customers' funds as traditional banks.
HISTORY First online banking services in the United States
(nline banking was first introduced in the early )*+s in -ew ork, ork, &nited "tates./01 Four ma2or banks 3 Citibank Citibank,, Chase Manhattan, Manhattan, Chemical 4ank and 4ank and Manufacturers 5anover 3 offered home banking services. Chemical introduced its 6ronto 6ronto services services for individuals and small businesses in )*+7, which enabled individual and small#business clients to maintain electronic checkbook registers, see account balances, and transfer funds between checking and savings accounts. 6ronto failed to attract enough customers to break even and was abandoned in )*+*. (ther banks had a similar e8perience. 9lmost simultaneously with with the &nited "tates, online banking banking arrived in the &nited :ingdom. The The &:'s first home online banking services known as 5ome link was link was set up by 4ank of "cotland for "cotland for customers of the -ottingham 4uilding "ociety -4"! in )*+7. The system used was based on the
&:'s 6restel viewlink 6restel viewlink system and used a computer, such as the 44C Micro, Micro, or keyboard Tandata Td);! connected to the telephone system and television set. The system allowed on#line viewing of statements, bank transfers and bill payments. %n order to make bank transfers tr ansfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the -4" who set the details up on the 5omelink system
<=>%=? (F @%T=<9T&<= @%T=<9T&<= Banks adopt E-banking as a means to replace their traditional deliver channel through branch banking mainl due to the cost of setting up of phsical branches and increased overheads associate !ith maintaining them " #hile adopting an ne! channel of service deliver$ service is one of the primar bene%t !hich a customer e&pects from the service provider" provider" The consumers compares the bene%ts b ene%ts and !eigh them against the costs associated !ith the service" E'Banking services are graduall replacing the traditional banking services" In order to gain competitive advantage over the competing banks$ the banks are continuousl improving their services through e-banking services" This paper has e&amined revie!s collected in the area of e-banking services !hich includes Internet Banking$ (T) banking$ )obile banking b anking etc"
