​E-banking – Classifications, Significance & The Offered Services

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​E-banking
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Banks provide several bank-linked services and benefits to attract clients. These range from providing computerized monetary and banking services and issuing credit cards and debit cards to offering enticing personal services. Even so, one of the best present-day services presented by banks is net banking services. 

Net banking has several names like e-banking, web-linked banking, web banking, virtual banking, or online banking. It is nothing but the usage of electronic networks and telecommunication networks for conducting distinct financial services and offering several financial products. Via net banking, you as a client can get your banking record, and can easily manage your different exchanges using your personal computer or mobile phone. Still not clear? 

For instance, suppose you have an SBI bank account. With this bank account, you immediately want to transfer a sum of Rs 1 lakh to some other account on an urgent basis and you cannot visit the bank as you must visit during SBI bank timings for the transaction and right now is an inappropriate time to visit the bank. So, what can you do? What choice do you have? Here, you can just login into your SBI net banking account, search for the money transfer option, input the appropriate details where you want to transfer the funds and hit on transfer. Once you hit on the transfer option, your funds will be transferred immediately to the account you are required to transfer. The same is true for any other bank too, whether it is Canara Bank or Axis Bank. If you cannot visit the Canara bank timings or Axis bank timings to the concerned institution, then you can route towards net banking services. 

Classification of e-banking – 

Banks provide distinct types of services. These may be sorted into three types. Note that, net banking falls in the type 3 category. Read on to know the 3 types – 

Type no. 1 

This is an important service that banks provide you on their website. Here, banks provide you with data, details and information linked with products and services. Moreover, a few banks may respond to your inquiry via email too. 

Type no. 2

Here, the bank provides you with directions or apps for different administrations like checking your account balance, transactions, pending transactions, etc. 

Type no. 3

Here in this third category, the bank allows you to work or operate like making payments for your bills, investing in investment products, redeeming securities from the products where you previously invested, transferring funds and others. Most traditional banks provide e-banking administrations as an additional technique for providing support. Moreover, many banks may allow you to conduct banking administration via electronic conveyance platforms or channels. Similarly, certain banks may just be internet-only financial institutions with no proper branch anywhere, for instance, DBS bank. 

What are the services available under electronic banking?

Mobile banking

Mobile banking, even known as m-banking, is the name used for conducting transactions, making bill payments, applications for credit options, checking balances and other crucial financial exchanges using the phone. 

ECS (electronic clearing system)

ECS or electronic clearing system is a very creative provision for occupied individuals. Using this provision, your credit card bill payment may be consequently made if you activate this feature. The bill amount is charged to your bank account. Activating this feature frees you from the stress of remembering your due dates and even allows you to make payments on time without falling prey to late or missed payments.  

Smart cards 

A smart card refers to a card that stores crucial data in the microchip or the memory chip in lieu of the magnetic stripe that is found on credit cards and debit cards. These smart cards are not just used for moving or transferring funds, but even are a medium for identifying the individual who is the owner of the card. Exchanges conducted through the smart card are thoroughly encrypted to protect the details exchanged. Every encoded exchange cannot be easily hacked and does not transmit additional or extra data. 

ETFs (electronic fund transfers)

ETFs refer to the electronic exchange of cash that starts with a specific individual’s account to another individual’s account. These transfers are recorded by means of the personal computer-associated frameworks without any immediate intercession of the bank staff. 

Net banking

This is web-linked banking. This is help or assistance provided by the bank to you to get the record info by means of the internet or the web. Web-linked banking also called internet banking, otherwise known as online banking or web banking. Net banking empowers you to conduct various standard exchanges, for instance, make bill payments, request for the account balance, invest in financial instruments, etc. For all these transactions, you earlier had to visit the bank, which consumed not just a lot of your time but also effort. Now, with the introduction of net banking, you do not require visiting the bank physically for any of these banking-linked chores. In simpler terms, if you have an account with Canara bank, then you do not require visiting Canara bank during Canara bank timings to make your banking transactions. To conduct your banking transactions, you can simply log into your Canara net banking account, search for the appropriate option, and conduct the operation with just a click from any corner of the world. 

What is the significance of electronic banking?

Reduces the cost for every monetary exchange – As you as a client or bank consumer do not require visiting the bank branch for every monetary exchange, it saves tremendous time, and effort as well as money that you otherwise would have used on traveling. 

No topographical linked hindrances – In the conventional monetary framework, the geological distances hampered financial exchanges. Now, with e-banking, such geological hindrances can be better countered. 

Convenience – You as a client of the bank get all the banking access to conduct transactions like bill payments, investments, fund transfers, etc. using net banking from anywhere at any time.