Development of Electronic Banking

An increasing number of clients conduct transactions outside bank branches and use electronic channels and media that offer greater convenience, greater availability and, above all, a faster business process. The comparative analysis of data clearly shows that electronic banking is growing to such an extent that it will bury traditional cash and cheque transactions. It is not yet entirely clear when the majority shift to electronic banking will occur, but it is clear that it will happen soon.

Solution and Method

An increasing number of clients conduct transactions outside bank branches and use electronic channels and media that offer greater convenience, greater availability and, above all, a faster business process. The transition to these media is beneficial both for clients and for the bank. In addition to convenience, clients save a great deal of time, whilst banks relieve employees at bank counters, who can devote themselves more thoroughly to individual clients and more effective marketing of banking products.

Electronic banking enables banks to have less paperwork, faster and more efficient customer service and, last but not least, strengthening of reputation. For clients, electronic banking represents a convenient way of connecting with the bank, regardless of the bank's working hours, low cost of service, relatively simple use and privacy in conducting banking transactions. In Slovenia, business operations in the field of electronic banking are well developed for conducting non-cash payments with payment and credit cards, business operations via electronic banking for conducting all payment transactions, business operations with cash machines for 24-hour cash service and, recently, business operations for conducting small non-cash payments with mobile phones.

In order for financial institutions to meet market needs and differentiate themselves from the competition, they focus on developing various technologies with which they would offer clients electronic banking services. The challenge that financial institutions face today is to establish electronic banking that will ensure a high level of service and information integrity. The development of technology has caused major changes in banking and business in general.

Electronic banking has become an everyday phenomenon and a necessary part of the banking offer if a bank still wishes to remain competitive and retain its clients. They have become accustomed to having access to their money and conducting banking services 24 hours a day, 365 days a year. Each client has their own needs, wishes and expectations regarding a particular banking service.

Clients are changing: from passive, patient and undemanding, educated users of banking services have formed in the modern banking environment who know what they can expect from the bank and what it can offer them according to specific needs. When historians look back in years to come, they will undoubtedly say that one of the most important achievements of the 1990s was the universal expansion of the internet. The future is in the hands of electronic media and from modest beginnings to the reduction of doubts about the electronic future, it came in an extremely short time, but there are still many opportunities, paths, ideas that indicate that they are in fact only at the beginning of the digital age.

Technology has the power to change their lives. Thomas Edison invented the light bulb without dreaming of the incredible impact it would have on their lives. But can personal computers also intervene so drastically in their lives?

In the mad race of technological progress, microchips can be found practically everywhere today. Personal computers have changed significantly in form, function and usability since their introduction more than 20 years ago; the development of the internet has only just begun properly, the number of users is growing at an astonishing rate, and among them, of course, are banks. The terms 'electronic banking' and 'internet' have become inseparable.

Soon the time will come when the internet will become completely indispensable and they will not be able to imagine financial and business activities without it at all. The classic method of payment, that is, payment with cash and cheques, is gradually disappearing from circulation. They are being replaced by modern methods of payment.

Why carry cash for purchases to the shop when you can have only a small plastic card in your wallet, pay a bill with just a click from your armchair at home, or even buy a parking ticket with your mobile phone. New payment instruments encourage the replacement of cash, reduce the costs of financial services and accelerate the development of an efficient payment system. The use of electronic banking is spreading very quickly and is also adapting to technological progress.

With the establishment of electronic media in banking, security and confidentiality of data have become a key segment of modern banking operations. Banks must and will have to continue to invest in the development and upgrading of their security systems, which are a very vulnerable part of banking operations. Given that the use of modern payment instruments in Slovenia is relatively high and is increasing from year to year, we can clearly state that users have been and will be convinced by quality services and shorter times for executing banking operations.

At the same time, especially in cases where a banking service requires human communication, traditional bank counters will still be a good solution for many a demanding client.

Results

The comparative analysis of data clearly shows that electronic banking is growing to such an extent that it will bury traditional cash and cheque transactions. It is not yet entirely clear when the majority shift to electronic banking will occur, but it is clear that it will happen soon. The electronic future belongs to electronic banking as well.