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How E-Banking is Gaining Ground Over Traditional Payment Methods?

October 15, 2020

John had landed at the airport and boarded his taxi to take him to a meeting. In his rush, he forgot to carry his wallet. But he was comfortable knowing that he could use his e-wallet on his phone to make this particular payment.

What is E-Banking?

Electronic banking or e-banking is a method of transferring funds from one account to another using an electronic medium. The different forms of e-banking include, but are not limited to, internet banking, ATMs, telebanking, smart cards, debit cards and mobile payment solutions or mobile banking.

Benefits of E-Banking

Payments made electronically are realized immediately. This saves time for customers and business owners. The cost of transactions for customers is minimal, and in many cases, without any cost involved. Customized statements are always available online, and tracking expenses can be done very quickly. This saves you from the occasional trip to the bank to update your statement. Transactions can be done 24/7 using mobile payment solutions as banking apps can be used even after banking hours. Many merchants also provide a variety of offers for customers who use mobile wallets for payments. Over time, banks can save money by reducing staff as customers are not dependent on physical banks anymore. While making online payments, customers can make worldwide payments instantaneously because there are no geographical boundaries within the internet.

Concerns with E-Banking

Many customers who use mobile payment solutions for the first few times will run into problems. To address this, banks will need to have a very strong and well-trained customer support department to deal specifically with these issues. Using the internet has its share of concerns when it comes to dealing with security. Online fraud and theft have been rampant in the past. With the advancement in technology, banks will need to keep all security features up to date to protect the privacy of its customers and provide the highest level of security for the funds that belong to its customers. E-banking is dependent on telecommunication systems. Any failure in this will be an inconvenience to customers and merchants.

The Future of Cashless Transactions is Here

SEA is at the cusp of a financial revolution. About 49% of urban bank customers already use mobile wallets. The proportion is set to reach 84% by 2025. E-bank payment in SEA is still in its nascent stages, but it is set for a big rise owing to the dense population and the dynamic economic growth. Over one-third of SEA, customers expressed their willingness to shift to any form of digital transactions rather than stick to traditional banking activities. Research has indicated that up to 12% of credit card users in Indonesia, Malaysia, Thailand and Vietnam could move to non-bank digital players in the market. SEA is fast emerging as a mega-market for digital consumer finance, where more than 70% of the millennial are connected to the internet.