Page 29 - Banking Finance October 2019

ARTICLE

What is electronic banking?

E-Commerce
Conducting business through electronic networks

E-Finance E-Money
Providing financial services Stored value of prepaid
through electronic channels payment mechanisms

E-Banking Other financial
Providing banking products and services and
services through electronic products
delivery channels
Insurance, online
brokering, etc.
Internet banking

Telephone banking

The difference between e-money and e-banking
Other electronic is that, with e-meony, balances are not kept in
delivery channels financial accounts with banks.
Imf.org

While virtual banking was once a novel idea, today you might its personal computer banking service in 1989 and was the
be hard-pressed to tell whether a bank is virtual or first bank in the world to offer internet banking services.
traditional simply by viewing its website or mobile app. ICICI was the first bank to initiate the internet banking
Many traditional banks now offer a full range of online revolution in India as early as 1997 under the brand name
products and services that match those offered by virtual 'infinity'.
banks. A virtual bank doesn't have to pay for physical
branches nor the employees to staff those branches. This is Now let us find out, how it works:
a tremendous cost saving and the savings are usually passed
along to customers in the form of higher interest rates on
their deposits, lower interest rates on loans and lower
banking fees.

In other respects, virtual banks and traditional banks with
an online interface offer many of the same features,
including FDIC insurance, account management, electronic
transfers and payments, and even remote check deposit
capabilities. In some cases, virtual banks offer additional
online tools for financial planning, budgeting, investment
analysis and even tax preparation but there is no reason a
traditional bank can't offer those services online and some
have already been doing.

Virtual Banking dates back to 1980s'. Wells Fargo launched

BANKING FINANCE | OCTOBER | 2019 | 29