E-BANKING

                                         

WHAT IS E-BANKING?

“E-banking” is basically Electronic Banking which can also be termed as “Modern Banking”, “Online Banking”, “Virtual Banking”, “24/7 hr banking”, “Internet Banking”. A system allowing individuals to perform banking activities at home, via the internet. Some online banks are traditional banks which also offer online banking, while others are online only and have no physical presence. Online banking through traditional banks enable customers to perform all routine transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests and some even offer online loan and credit card applications. Account information can be accessed anytime, day or night, and can be done from anywhere. A few online banks update information in real-time while others do it daily.

 Electronic banking refers to the services that our bank offers on their website and through their bank card. Some banks charge for their online services, others do not. Usually, if our bank offers online services, we will be able to review all of our account balances and get account information, transfer money and pay our bills including credit card bills, phone bills on the computer.

They also offer automated teller machines (ATMs) which allow us to withdraw money from our checking or savings accounts by using an ATM card. The ATM card allows us to access our money wherever ATMs are located, even in foreign countries. ATMs are open 24 hours a day, 7 days a week. Banks also use electronic transfers to deposit payroll checks directly into a customer’s account and to automatically pay a customer’s bills when they are due.

There may be fees for some electronic banking services.

Online Banking provides detailed information on Online Banking, History of Online Banking, Online Banking Services, Future of Online Banking, and more. Online Banking is affiliated with Offshore Banking Accounts.

History of e-banking

The concept of online banking as we know it today dates back to the early 1980s when it was first envisioned and experimented with. However, it was only in 1995 (on October 6, to be exact) that Presidential Savings Bank first announced the facility for regular client use. The idea was quickly snapped up by other banks like Wells Fargo, Chase Manhattan and Security First Network Bank. Today, quite a few banks operate solely via the Internet and have no ‘four-walls’ entity at all.

In the beginning, its inventors had predicted that it would be only a matter of time before online banking completely replaced the conventional kind. Facts now prove that this was an overoptimistic assessment - many customers still harbor an inherent distrust in the process. Others have opted not to use many of the offered facilities because of bitter experience with online frauds, and inability to use online banking services.

Be that as it may, it is estimated that a total of 55 million families in America will be active users of online banking by the year 2010. Despite the fact that many American banks still do not offer this facility to customers, this may turn out to be an accurate prediction. The number of online banking customers has been increasing at an exponential rate.

Initially, the main attraction is the elimination of tiresome bureaucratic red tape in registering for an account and the endless paperwork involved in regular banking. The speed with which this process happens online, as well as the other services possible by these means, has translated into a literal boom in the banking industry over the last five years. Nor are there any signs of the boom letting up - in historical terms, online banking has just begun.

“Overview of E-banking In Pakistan”

In Pakistan banking is helping E-commerce to grow in Pakistan. Almost all banks in Pakistan have converted into online banking and helping their clients by giving modern e-commerce banking facilities such as online banking, mobile banking, credit card, ATM facility, and also the online payment of the utility bills. With the growth of e-commerce business in Pakistan, it has created more e-commerce jobs in Pakistan such as Pakistan e-commerce banking jobs.

 UNITED BANK LIMITED

United Bank Limited is one of the largest commercial banks in the country. With almost forty-six years of good standing to its valued clients, it has stood the test of time, producing assets of over Rs. 300 billion. It offers its services through a wide network of over 1000 domestic branches all over Pakistan and 15 overseas branches as part of its global network.

Vision:

The vision of UBL is “A World - Class Bank Where You Come First” which means that we believe that our customers’ needs come first. It is this “You First” culture we are creating at UBL to truly become a world-class bank which takes care of its customers and provides them with world-class services & products.

How e-banking started in Ubl:

In Pakistan e-Banking has started taking off in recent years. E-commerce task force has been formulated and the UBL has expanded its online branch networks. In the past 2-3 years, Banks have also launched Internet Banking and internet banking is now improving with more sophistication and services for corporate banking customers. In Pakistan initially, internet banking was launched to provide a limited number of services. But in recent years there has been greater understanding and development towards various services being offered by banks through internet banking. Generous funds were allocated to improve e-Banking infrastructure, HR, security, and applications for various components of e-Payments. The financial sector has increased the budget over 200% during the last 5 years, with total spending over US$300/million/year. With the satisfaction of legal issues of security assurance and easy access, there is an increase in the usage of internet banking. E-banking now becoming more sophisticated and customer friendly.

Ubl e-banking:

With the changing in bank technology more and more banks are likely to consider moving away from paper-based banking methods. Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. E-Banking is the delivery of banking services through the use of electronic communication, primarily the Internet. The term "electronic banking" or "e-banking" covers both computer and telephone banking.

You may also see or hear E-Banking called Internet banking, on-line banking or PC banking. E-Banking may include ATMs, wire transfers, telephone banking, electronic funds transfers, and debit cards. The Internet offers the potential for safe, convenient new ways to shop for financial services and conduct banking business, any day, any time. However, safe banking online involves making good choices – decisions that will help us avoid costly surprises or even scams.

Atm machines:

E-banking infrastructure in Pakistan is growing at a considerable pace and the totals of online network branches are more than 2500. A recent addition in electronic transactions of UBL has been allowing clients to access their accounts to do fund transfers and remittances from any ATM from the participating bank.

With the deregulation of the telecommunication sector in Pakistan, the opportunities for further value-added services to underpin banking transactions have multiplied manifold. Transaction costs will become lower and customer service will improve. A variety of new services can then be offered.UBL is expanding ATMs more aggressively while maintaining them in good stead.

 Advantages of e-banking 

·      CONVENIENT: First, online banking is convenient. It allows us to perform transactions, pay bills and check balances 24 hours a day, 7 days a week. The bank virtually never closes because it is as accessible as our PC or laptop computer. No matter where we are in the country or in the world, we can visit our online bank and handle money matters. We can even schedule to pay several payees ahead of time rather than keeping up with paper bills or trying to remember when to visit a payee's web site to make an online payment. Our bank will automatically send the payments on our behalf in the amounts and on the dates we specify.

 

·      SpEeD & eFfIcIeNcY: Second, online banking is fast, efficient and effective. Through the internet, transactions are typically performed and executed at a faster rate than ATM's. In addition, online banks give us the ability to handle several bank accounts (checking, savings, CDs, IRAs, etc.) from one site. The majority of banking sites are also compatible with programs like Quicken and Microsoft Money, so as to allow for more effective management of assets.

Disadvantages of e-banking

·      TRUST: The main issue for most people is that of trust. They may wonder if their transaction went through successfully or if they clicked on the correct button. The best way to overcome this uneasiness is to make a habit of printing the transaction receipt. Keep this receipt until our bank statement or online account view confirms that we have successfully executed the transaction.

    

·      COMPLEX & DIFFICULT: Online banking sites can also take a while to start up and can be difficult to learn at first. Some banks require customers to provide some form of photo identification in addition to signing a form at one of their branches. Spouses may also have to sign a power of attorney if they both plan to access and handle their accounts together online. In addition to all of this, it may take a while to learn how to use our banking site. Most if not all banks will offer an online banking tutorial. Some even offer live customer support for online banking via chat, email, or phone.

 Clearly, online banking has both advantages and disadvantages. It simplifies life for some people and for them it is frankly a better way to bank. For others, it may be a little more complex and downright intimidating. In light of these two perceptions, more and more banks are offering online banking as a viable option for their customers. 

Online banking is rapidly gaining popularity, as more and more customers recognize its advantages. Most banks charge fewer fees if we use their online services. We could even avoid receiving paper statements if we like and conduct 95% of our business online.