E-banking: Issues and Challenges

The new information technology is becoming an important factor in the future development of financial services industry, and especially banking industry. Growing international trading and problems in transferring money have motivated researchers to introduce a new structure. E-banking is such idea. Most of banks are using the Internet as a new distribution channel. E-banking or on-line banking is a service provided by many banks and credit unions that allow conducting banking transactions over the Internet using the information and communication technology. Ebanking also provides opportunities for creating new sets of global and national trading relationships with the emergence of web and the Internet. This paper presents a through survey of e-banking describing definition, barriers, benefits from the customers’, economy, and bank point of views, and main issues and challenges such as risk management and factors responsible for e-banking development. Finally, conclusion and future perspective of e-banking development will be discussed.

Keywords:

Information Technology , E-banking , Epayment , E-commerce , E-government