Essay on Electronic Banking (E-Banking): Meaning, Advantages and Disadvantages

E-banking is becoming bigger and better. Nowadays, very few people visit banks to do their transactions. This fact does not come as a surprise since people prefer online transactions which are less laborious and time-saving. Are you familiar with E-banking? If no, then this article got you covered. It will outline facts about e-banking. In addition to that, it will bring out the advantages and disadvantages of e-banking. Read on to find out.

What is E-Banking? – Meaning

E-banking refers to electronic banking. That is, it is an electric-powered payment system that allows online transactions through different financial organization’s website. E-Banking helps its users to withdraw cash, pay bills, pay taxes and so forth. This field is large. It is accessible via different forms. Forms of e-banking include internet banking, mobile banking, and telebanking. You can also own an Automated Teller Machine (ATM), smart card, debit card and an e-cheque. Choosing to opt for e-banking has its advantages and disadvantages. Check out the merits and demerits of e-banking below.

Advantages of E-Banking

  • E-banking is less laborious compared to the traditional one.
  • It goes beyond geographical boundaries which expands banking.
  • E-banking is efficient due to the paperless working,
  • This system guarantees better services and total customers’ satisfaction.
  • It saves on time since you don’t have to make long
  • E-banking allows first-class monitoring of your account.
  • Simple to operate.
  • This system is convenient for essential.
  • It is a day night service which makes it more reliable.
  • E-banking is fast.
  • It is a great medium where banks get to endorse its other services such as investments and loans.
  • Online banking offers better and more friendly.
  • Transactional errors are rare.
  • Online accounts are easy to build up and maintain.
  • E-banking allows paying of different monthly bills without straining.

Disadvantages of E-Banking

  • E-banking is prone to hacking and other illegal transactions since no system is perfect.
  • In case of information exposure, your account is prone to internet imposters.
  • Some transactions are slow and may cause hours of tension before the transaction is complete.
  • Some banks may have weak security policies which expose their customers to fraud.
  • Maintaining a stable internet connection is expensive.
  • Successful E-banking transactions require some necessary computer skills which are not one known by everyone.
  • Learning how to use e-banking may be challenging for some people.
  • E-banking requires security passwords which some tend to forget.
  • When your bank’s server is down, online transactions are impossible.
  • E-banking eliminates some critical banking services and features.
  • Some transactions requires direct communication to be successful.
  • E-banking may not entirely solve your account’s issues and problems.
  • It eliminates the face-to-face communication which is frustrating and feels insecure.
  • Different e-banking forms have limitations. For example, your ATM withdrawal cannot exceed a certain amount of cash.
  • With the high necessary resources and skills, not all banks can afford e-banking.

Final Words

Technology has its shortcomings and e-banking is no different. The above discussion highlights the advantages and disadvantages of e-banking. Weigh the above points and know if this is something you want to venture in. This article will help you settle for a wiser decision.

By: Maureen Muriuki