Electronic banking: what is it – Dictionary of Economy

Electronic banking concept

Electronic banking is known as the provision of financial services to the customer through computer equipment so that he can carry out his banking transactions in real time.

In the struggle to attribute an appropriate name to this technological innovation, terms such as virtual banking, online banking, e-banking or, generically, electronic banking appear, although it is worth clarifying what is meant by each of them

– Electronic banking: refers to the type of banking that is carried out by electronic means such as ATMs, telephones and other communication networks. Traditionally, this term has been attributed to Internet banking or online banking, but its meaning should be clarified. Some authors consider it as a higher-order construct that involves several channels that also include telephone banking, mobile phone banking (based on Wireless Application Protocol –WAP– technology that transfers the Internet to the mobile phone) and banking based on interactive television ( iNet-television).

It includes those tools that an entity offers so that its clients can carry out their banking operations through the computer using an Internet connection. For other researchers, Internet banking is a new type of information system that uses the new resources of the Internet and the World Wide Web (WWW) to allow consumers to carry out financial operations in virtual space.

Virtual banking or without physical presence: a virtual bank is considered as a bank without an office and the concept of virtual banking is normally associated with electronic banking. In general terms, this market should not be called virtual, being more appropriate the denomination of electronic or Internet banking, since the organizations participating in the exchange exist physically.

Electronic banking in Spain

Telephone banking appeared in Spain in mid-1995 at the hands of Banco Español de Crédito (Banesto) and Banco Central Hispano (BCH). Although initially it only served as a means of consultation, it currently incorporates practically all the services of the financial system