You’ve probably heard the term e-banks before. What are its advantages? What are the most popular electronic banks suitable for everyone? All of this we will know in detail today, so that we have a reliable guide to e-banks in your hands.
The world has recently seen an increase in cash and financial flows, both in the area of trade and global investment, in parallel with the development of information and communication technology, which some call a technological shock.
The widespread e-commerce, the online buying and selling process, has forced e-commerce owners themselves to look for easier and faster ways to perform banking operations such as withdrawals, transfers and deposits due mainly to the nature of their work.
Hence the need for a new quality of non-traditional banks, which do not adhere to a specific place or time, which has led to the emergence of electronic banks to meet the need of the modern era.
Now come to know her…
What are e-banks?
E-banks are electronic payment systems that enable customers to conduct a range of financial transactions through the bank’s own website by creating an online customer account.
E-banks are either virtual banks that set up websites to provide the same services as the traditional bank, and do not provide their services in the form of traditional bank branches.
Or it belongs to a traditional bank that makes a website that provides financial services electronically, i.e. it is a traditional bank that also makes an electronic bank for it.
Of course, e-bank is not only a website, but also a comprehensive financial, administrative and advisory system, and is licensed and authorized by the responsible bodies of each country.
Of course, the way you open an online bank account varies from bank to bank, but they are all very easy and simple. Many e-banks also give you a special visa where you can easily conduct your financial transactions through ATMs.
E-banking began to emerge after the wave of mergers and acquisitions in the financial industry in the late 1990s, leading to an expansion of traditional banking customer bases so that banks would consider providing online banking as a strategic necessity.
It was also attractive in terms of lower transaction costs, ease of services and other advantages that enhance profit margins and reduce overhead costs.
The first known home computer bank for customers began to be published in 1980 in America, allowing customers secure access to their account information, ensuring that the bank provided some financial transactions online, so the idea of e-banks evolved over time, and different countries began to apply the idea.
What is the difference between a traditional bank and an e-bank?
The traditional bank has physically located banking agencies and owns its own branches where you can conduct your normal physical transactions after opening a bank account, and the main advantage of the traditional bank is the direct communication between the customer and his banking advisor.
The e-bank provides the same services as the traditional bank, i.e. check account, loan, savings and insurance products, etc.
However, you are free to choose to conduct your online transactions from your computer without moving to the bank’s own headquarters.
Advantages of e-banks
- Most of the time e-banks offer many services that give you great ease and advantages, which are often not provided by traditional banks.
- The confidentiality and security of transactions so that the person is satisfied during dealing, because they rely on an electronic protection system known as the secure communication layer, a system designed to protect and secure data from penetration and fraud.
But many business people are advised not to leave giant amounts in e-banks to ensure you don’t hack and keep yourself from losing, perhaps because your account is more vulnerable.
- Banking can be performed at any time of the week and 24 hours a day, saving you a lot of time and effort without having to go to the bank and wait for a long time, where you do banking operations without having to move from your place.
- The speed of electronic banking operations for ground banks, where you can do all your transactions in a matter of minutes. In the below we will talk about the best and most famous electronic banks that you can deal with in 2021, which allows all customers, e-stores and others to conduct financial transactions online, such as sending, transferring and receiving funds in all countries.