E-bankinng/Electronic Banking, Types and Its Importance

The activities of the banking industry in underdeveloped, developing, and developed economies can not be overemphasised. They control the supply of money and see that funds are channeled from the surplus units to the deficit units of the economy thereby influencing the economy. 

As the banking industry began to expand, its activities started expanding simultaneously thereby making the banking functions difficult to be carried out efficiently and effectively by the bankers, hence the need arouse to introduce electronic banking. 

Electronic banking is an online banking in which transactions are carried out through an electronic means rather than performing transactions through physical means. 

let me explain further to you guys! 

You know, instead of you to rush down to the bank before you can carry out any banking transaction, you can just do that through your smartphone, tablet, laptop, desktop, or your ordinary call making phone through using any of the types of electronic means such as Mobile Banking, Internet Banking, Smart Card, and Interswitch. 

Now that you have had basic knowledge about what we mean by electronic banking, can we  now discuss its types and importance? I know your answer is yes 

 

Types of Electronic Banking 

Electronic Banking is divided primarily into 4 classes/types namely:

• Mobile/Telephone Banking 

 It is a product that allows you access services as you go. 
 
You can make transactions anywhere with your mobile phone such as account balance, Transaction enquires, Bill payment, Account verification, Electronic Funds Transfer, Updates and history. 

• Internet banking 

 When you make use of internet to perform transactions. Internet banking allows you to perform different financial transactions through your bank mobile application.
 

• Interswitch

This is a chip technology that guarantees that information stored on it is not accessible to unauthorised persons. 

• Smart card banking

This is when you use your electronic card to perform transactions. There are different types of this smart card which are:

• Value Card
• Verve Card
• Naira Credit Card
• Master Card. 

Other subdivisions are:

• Automated Teller Machine (ATM) 

This is an electronic device that you have access to in order to make transactions without necessarily needing your banker's help. 

All you need is go to where the ATM is and insert your card, then enter your 4 digit pin to proceed. 

• Point of Sale (POS) 

A POS is known as Point of Sale and is a payment device on which you can use your credit or debit card to make payment at sales or purchase outlets. 

You can perform cashless payment, airtime vending, Loyalty redemption, printing mini statement of account and cash back enquiry. 

• Western Union Money Transfer 
  

This product allows you to transfer money from Diaspora to any where in the world. 

If you have a relative abroad, they may transfer money to you through Western Union. 

• Electronic Web Collection  

This product allows the bank partner with Universities and other higher institutions to handle Electronic admission, Electronic School fees payment, Automated Registration, Examination and Results Publications. 

• Electronic Recruitment 

This is an online recruitment services to all kinds and categories of clients such as NAVY, ARMY, Police and the Paramilitary through customized web portals and the use of scratch cards for prospective applicants. 

Now that we all know the various types of electronic banking, let's talk about its importance. 

 

Importance of Electronic Banking

• It reduces the stress you face with normal banking.

Using electronic banking reduces the stress you go through with normal banking activities cos you have all it takes on your mobile to transact without needing your banker's help. 

That's called "do it yourself" 

• Security 

Nigeria is using a cashless policy and with the help of electronic banking, we can say that our money is secure since we don't have to load money in our pocket or bag before banking with our bank. 

Also, your transactions through e-banking is highly protected from the hackers and you can rest assured that your account is secure from being tampered with.

• It enables you to control your money conveniently

You can control your money anyhow you like cos you have all the necessary instruments to be in charge .

• Fast Validation

You can validate your payment or receiving of funds as soon as possible provided you have a stable network in your domain.  

• Payment of Bills

You can quickly pay for your bills on your phone such as electricity bill, water bill, cable, without necessarily going to your merchant or payment outlets.

• Mini Statements of Account

You can get your mini  statement of account promptly from any of the e-banking products.

• Update Your personal Info

It is now easy for anyone to update their personal information on their account without going to the bank thereby saving them the stress which they may go through.

 

Knowing all these importance of electronic banking, you have discovered that electronic banking makes our transactions easier and secure. 

 

 Add your own importance that you think I should have included in my write up by commenting below.

Your comments are highly appreciated.