Another definition of E-Banking is one of the sectors affected by the development of information technology and banking communications. Electronic banking covers a large area of technology which is growing faster in recent times. Some are related to banking services at the “front line,” such as ATMs and computerized systems of banking. The other groups that are “back line” such as the technologies used in merchant financial institutions or transaction services. The function of E-Banking is almost the same as an ATM where the ingredients are slightly different. A customer can do activities checking account balances, transfer funds between accounts or banks, paying regular monthly bills (such as electricity, telephone, card credit), and so on. Utilization of E-Banking has many benefits that will be obtained by customers. E-Banking is free of queues and can be done from anywhere as long as the customer has supporting facilities to carry out the E-Banking service.
The types of services from E-Banking are as follows:
1. Online Banking
It is a combination of two basic terms namely online and banking. Now the internet has connected approximately millions of people. Can do banking transactions (financial and non-financial) with computers connected to the bank’s internet network. The type of deal with online banking is the transfer of funds/money, checking balance information, checking exchange rate information, making payment of several bills (such as credit cards, telephone accounts, electricity accounts, etc.), making purchases (mobile phone credit, airplane tickets, tickets train and so on).
2. Mobile Banking
Mobile banking is a banking service that can be accessed directly with GSM cellular phones by using SMS. The type of transaction that can be done is almost the same as using online banking.
Internet banking can save customers time and travel costs. Besides keeping costs, it also saves time. Customers can conduct banking transactions anytime and from anywhere (as long as there is an internet network available). Benefits are not only for customers but also banks. The internet banking allows banks to reduce operational costs due to the number of customers there are fewer arrivals to the bank. So, banks can use smaller offices and fewer employees. This efficiency causes banks to reduce the cost of renting premises and employee salaries. Another advantage, customers can make any financial transaction schedules at one time at a time or set the program. Such are some of the features and advantages of using internet banking, which is currently widely used by people. If customers can use it wisely, internet banking is a system that is very helpful and provides convenience in banking transactions.