Electronic Banking: Impact, Risk and Security Issues

The introduction of electronic banking in banking sector is to bring customer satisfaction, there by enhance the bank's profitability. Electronic banking is flapping with banking services. It provides enormous benefits to consumers in terms of the ease, simplicity and cost of transactions. E-banking can improve bank's efficiency and competitiveness, so existing and potential customers can benefit from a greater degree of convenience in effecting transactions. But it also poses new challenges to banking entities and authorities in regulating and supervising the financial system and in designing and implementing macroeconomic policy. The online banking is a demand of today's customers, but the adoption of e-banking by commercial banks increases security and different types of risks. The increasing popularity of e-banking has attracted the attention of both lawful/legitimate and unlawful/illegitimate banking practices, thereby, exposing customers to fraud, thefts and various other threats of similar nature. The objectives of this study are to study the impact of e-Banking on the banking performance, to know the various risks and security challenges in e-banking that will help bankers to understand the risk and security aspect of various e-banking services where customers have high level of concern. It will help the banks to deliver a secure ebanking system that ultimately, will assist the bankers to retain the existing bank customer and to convert the potential users to actual e-banking users.