In this tutorial, let’s learn different types of E-Banking. E-banking also refers to Electronic Banking. It is the financial and payment services delivered to customers using electronic devices and terminals on a computer network using Internet, Wireless networks, Automatic Teller Machines (ATMs), and Fixed telephone networks.
Types of E-Banking
The different types of E-Banking are as follows:
- Internet Banking
- Mobile Banking
- Phone Banking
- Debit/Credit Card
- Self-service terminals
- Contactless Payments, etc.
Automated Teller Machine(ATM) is one of the most popular types of electronic banking. The teller machine is also an electronic computerized telecommunication device that enables you to withdraw funds, deposit funds, change your Debit Card PIN(Personal Identification Number), and use other banking services. ATM eliminates the need of visiting a bank and doing these financial transactions through a human teller at the bank.
Internet banking refers to financial services delivered over the Internet to customers’ devices including personal computers like desktop computers, laptop computers, notebook computers, mobile devices such as smartphones or tablet computers, or other devices.
The bank hosts and runs the banking application on the bank servers. The customer visits the banking application online using a web browser with his/her credentials to perform financial transactions.
Mobile banking refers to banking services provided through a mobile smartphone application or m-website. Customers download the banking mobile application from the mobile application marketplace like Google Play store or Apple Store.
Phone banking refers to banking services provided through a fixed telephone line or mobile telecommunication network, covering both manned and Interactive Voice Response (IVR) banking services.
Debit and Credit Cards are other types of E-banking. A debit card is connected to your bank account and you can use the funds from your account directly through this card. Credit cards are issued by banks based on your credit score with a predefined credit limit.
When you use your Debit Card for a financial transaction, the amount is deducted from your bank account. You can use the card to pay at POS(Point of Service) brick-and-mortar merchant outlets, shop online, withdraw cash from ATMs, etc.
Self-service terminals refer to interactive terminals including ATMs, cash deposit machines (CDMs), cheque deposit machines, and virtual teller machines which are used by AIs to provide financial services.
Contactless mobile payments refer to the use of contactless or wireless technology. An example of contactless technology is Near Field Communication (NFC). Contactless payment is used to transmit payment transaction information (e.g. credit card information) between the customer’s mobile device and the payee (e.g. a merchant).