Eureka! Institutional Repository

Just a few years after its appearance in the business spotlight, the Internet poses an important and demanding challenge to the banks throughout the world, since it establishes new distribution channels of banking products and services. Banks move towards their full transformation armed mainly with technology, having at the centre of attention special treatment for each client. The purpose of this essay is the presentation of electronic banking (e-banking), which term represents the capacity of carrying out any commercial transaction between the bank and its clients through electronic networks. A reference to the concept of electronic banking , together with a brief historical recursion both to an international and national level, compose the starting point of the essay. Moving on,the advantages of internet banking use are presented and it is concluded that not only are they numerous, but also that banks,individuals and businesses equally enjoy them. In terms of the ordinary citizen, it offers two basic elements that make it unrivalled in relation to alternative networks (phone and ATM). These are the ability of transactions without time constraints ,since it operates 24 hours a day, and the absence of space constraints , considering that it eliminates waiting behind the counter. In addition, we point out the impact that electronic banking has in the competitiveness and profitability of banks. Furthermore, the issue of electronic banking security is raised together with the precautionary measures taken by a banking organisation in order to ensure the operation of banking transactions, as well as the security measures that the users can take on their part.