Over the years the banking has drastically changed and has affected the lives of millions of individuals around the globe. In addition, E-banking is internet banking is an electronic payment system customers of a given can perform all their banking transactions. So here this article gives the advantages and disadvantages of E-banking to better understand this topic.
Pros or Advantages of Electronic banking:
- The cost of operation per unit of service is lower for banks.
- Customers can conveniently move funds electronically from one location to another.
- Credit card and debit cards allow customers to get discounts at points of sale.
- Customers can withdraw money from ATMs at any time.
- E-banking helps the banks to provide efficient, economic, and quality service to the customers. In addition, it helps the bank to create new customer and retaining the old ones successfully.
- Online banking allows automatic funding of accounts from long-established bank accounts via electronics funds
- Offer convenience to customers since they are not required to go to the facilities of the bank.
- There is a very low incidence of errors.
- The speed of transaction is faster relative to the use of ATM or customers banking.
- A client can keep track of his/her expenses using a virtual wallet provided by some banks and apps, & make payments.
Cons or Disadvantages of Electronic banking:
- One must pay a membership fee to join
- One must qualify for membership
- In dealing with complicated transactions and challenges, face-to-face meetings are preferable. To resolve issues, banks may convene meetings and seek expert advice.
- Some credit units are limited in their product
- Savings and credit cooperatives, especially small local cooperatives, aim to provide the same level of convenience to their customers as banks. Despite the fact that many are part of shared networks that expand the number of platforms open to their members,
- E-banking necessitates a welcoming atmosphere that is available 24 hours a day, seven days a week. The bank must invest a significant amount of money in employee training. A lack of skilled and eligible personnel is a major barrier to e-banking activities.
Thank you for reading this article. If you have any queries regarding our article on the advantages and disadvantages of E-Banking then do comment in the comment section below.
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