What's the difference between electronic banking and traditional banking? What are the shortcomings of the services provided?

Comparison between online electronic banking and traditional banking;

1. Challenging the traditional banking concept First of all, online banking will change the traditional banking concept. Secondly, online banking will change the traditional banking marketing methods and business strategies.

2. Online banking will greatly reduce the cost of banking services.

(1) Reduce the cost of banking services.

(2) Reduce the development and maintenance costs of bank software and hardware.

(3) reduce customer costs

3. Economies of scale can be realized in a wider range.

4. Online banking has a wider customer base.

Online banking will change the traditional competitive pattern of banks.

Services provided by online banking:

1. Provide traditional online banking services, including the release of banking and related financial information, customer inquiries and complaints, account inquiry and deployment, application and loss reporting, online payment and transfer functions.

2. E-commerce-related businesses, including retail businesses such as shopping, booking tickets and securities trading in business-to-customer mode, and online settlement of wholesale businesses such as online purchase in business-to-business mode.

3. New financial innovation business, such as group customers inquiring the account balance and transaction information of subsidiaries through online banking, and then signing multilateral agreements.

Compared with traditional banks, online banking has many advantages:

First, greatly reduce the operating costs of banks and effectively improve profitability.

Online banking mainly uses public network resources, without setting up physical branches or business outlets, which reduces personnel costs and improves the efficiency of bank back-office systems.

Second, there is no time and space constraints, which is conducive to expanding the customer base. Online banking has broken the geographical and time constraints of traditional banking business, and has the characteristics of 3A, 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, it is conducive to service innovation and provides customers with diversified and personalized services. Selling financial products such as insurance, securities and funds through bank outlets is often greatly restricted, mainly because it is difficult for ordinary outlets to provide customers with detailed and low-cost information consulting services. Using the Internet and bank payment system, it is easy to meet the needs of customers for consulting, buying and trading various financial products. In addition to banking, customers can easily buy and sell stocks and bonds online, and online banking can provide customers with more suitable personalized financial services.

Development problems faced by online e-banking;

One is the problem that laws and regulations are out of touch with actual needs. Online banking is still a part of economic and financial activities, which cannot be separated from the regulation and protection of laws, and it is difficult for the existing laws to regulate the development of online banking and protect the rights and interests of consumers. As long as there is an error in one link of online fund transfer, the funds will not be paid normally, and legal disputes will occur, which requires legal adjustment.

Second, the security issue is very prominent. The confidentiality, authenticity, integrity and non-repudiation of relevant information are the most critical factors. When there are no laws and regulations in China to deal with these cyber crimes that do not cause harm or are less harmful, how to ensure the security of transactions and keep secrets for individuals has become the most urgent problem to be solved in the development of online banking. At present, although commercial banks have taken certain security measures and formulated corresponding regulations, there are widespread phenomena of lax management in the implementation, such as password storage and regular replacement, security management of main computer room, disaster backup, virus prevention and so on.

Third, the network construction of the financial industry lacks overall planning. As far as the basic environment of online banking in China is concerned, due to the backward infrastructure and the lag of online payment of funds, some customers still have to adopt the way of "online ordering and offline payment". Although the four major commercial banks of industry, agriculture, China and China have established their own websites, the framework and service content of the websites are still far from the requirements of e-commerce and network economy. The investment in capital and personnel is seriously insufficient, and the combination between banks and high-tech industries is not close, which leads to the small scale, low technical level and small coverage of the online financial market, which basically stays in the computerization of traditional business. At the same time, the network construction of commercial banks and even the whole financial industry lacks overall planning, and the software and hardware used lack unified standards, let alone a complete and comprehensive online information system.

Fourth, the supervision consciousness and the existing supervision means are lagging behind. The existing supervision of commercial banks by the central bank is mainly aimed at traditional banks, with the focus on increasing or decreasing the number of banking outlets, checking and auditing business vouchers and statements. In the era of online banking, paperless accounting revenue and expenditure, abstract processing flow, virtualization of institutional outlets and substantial increase in business content have greatly reduced the efficiency, quality and radiation of existing supervision methods, and the authenticity, comprehensiveness and authority of supervision information are facing severe challenges, which will lead to major changes in banking service supervision based on the Internet.