What is an e-banking system?

E-banking is hardware and software that allows bank account holders to conduct multiple banking procedures and transactions over the internet. E-banking is synonymous with electronic banking, internet banking, electronic payment system and online banking. With-banking systems bank customers can make payments; monitor their account balance and recent transactions; receive financial information and carry out a number of other traditional banking actions without having to physically visit their bank.

What are the advantages of using e-banking systems?

Convenience – You can do your e-banking at anytime, anywhere so long as you have a computer and internet connection.

Simplicity – By automating the submission of payment documents and other documents as well as having software in place to complete mandatory details on such documents online banking simplifies the entire banking process.

Minimum risk of error –Mandatory details that appear on most banking documents are automatically filled in by the e-banking system software cutting out the risk of human error.

Efficiency – E-banking systems allow you to manage your company’s finances from the comfort of your own office. This is not only convenient but also time-efficient and cost-efficient as there is no need to physically leave the office to visit the bank.

Profitable – Work hours lost and transportation expenses are saved by managing your company’s banking from the office.

Eco-friendly – Doing your banking online using an e-banking system means no need for deposit slips, withdrawal slips; forms and other paperwork that wastes paper.  E-banking systems mean no carbon-emissions by driving to the bank and no need for large bank branches that use a lot of energy.

What is a core banking system?

Core banking system software supports a bank’s main banking procedures. The core banking computer software performs the core operations of banking including setting up a new account; the process of depositing and withdrawing funds; loans; processing cheques and calculating interest. Strategic Information Technology (SIT), a company that provides banking software to financial institutions worldwide defines core banking software as the vital component providing banks and credit unions with the functionality to operate.