What are the advantages and disadvantages of electronic banking? ..

Advantages of e-banking: Compared with traditional banks, e-banking has many advantages. First, because e-banking mainly uses public network resources, there is no need to set up physical branches or business outlets, which greatly reduces the operating costs of banks and effectively improves their profitability. Second, e-banking has broken the geographical and time constraints of traditional banking, and has 3A characteristics, that is, it can provide financial services to customers at any time (at any time), anywhere (in any case) and in any way (in any case), which is not only conducive to attracting and retaining high-quality customers, but also actively expanding the customer base and opening up new profit sources. Third, e-banking is conducive to service innovation and provides customers with a variety of personalized services. 2. Risks of e-banking: Due to its specific operation mode and network environment, e-banking brings great convenience to people, but it also has certain risks. There are two main risks in electronic banking. First, system security risks, mainly including data transmission risks, application system design defects, computer virus attacks and so on. If the prevention is not strict, it may lead to serious consequences of bank information leakage and threaten the safety of users' funds. The other is the inherent risks of traditional banking, such as credit risk, interest rate and exchange rate risk, operational risk and so on. But these risks have new connotations. Because banks don't meet customers directly, customers are scattered, the business area is large, and the market changes rapidly, it is difficult for banks to accurately judge the credit status of customers and the changes in the value of collateral. At the same time, e-banking has broken through the traditional legal framework in many aspects, and also brought some institutional obstacles to the operation and supervision of e-banking. In order to effectively prevent risks and ensure the safety of electronic banking, it is necessary to strengthen the supervision and management of electronic banking.