Banking

Abstract

By the technological development continued, mainly, the revolution of information technology has concentrated the banks to offer e-banking processes for their clients to be more competitive and more effective. The financial transactions (products and services) have become easier through e-banking for the participants. Simultaneously, it has possible risks as well as new types of transactions have created. This research paper shows the potential risks that related to e-banking and the ways of overpowering these risks.

The Risks of E-banking

In the banking sector, new sorts of banking products and services has increased, therefore the financial markets have used new technology via the Internet to became more efficient and more proficient. This technology called electronic banking (E-banking).

The definition of e-banking as stated by varies researchers is the connection between banks and their customers in order to manage the financial transactions online and the physically present at the bank is unnecessary.

Mainly, there are two types of e-banking. First, electronic money product is a system of stored value cards and can called as debit card. Second, electronic delivery channel product is the form of given instructions for funds transmission and can called access products.

E-banking improves the competitiveness and proficiency of the bank, so the level of customer convenience will increase too. This raised level of convenience expands the bank's goal clients through these in traditional markets. Along with these opportunities, e-banking creates potential risks for financial organizations as well as new types of services generate. Also, e-banking rises dependence of the bank on information technology, thus increasing the technical complexity of various operational and security concerns.

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