E-Banking and its features - Albania as a special case

AuthorErmela Bashuri
PositionParliament of Albania
Pages133-140
ISSN 2410-3918
Acces online at www.iipccl.org
133
IIPCCL Publishing, Tirana-Albania
Academic Journal of Business, Administration, Law and Social Sciences Vol. 2 No. 1
March 2016
E-Banking and its features - Albania as a special case
MSc Ermela Bashuri
Parliament of Albania
Abstract
The e-banking system is a system which enables customers of financial institutions to perform
financial transactions such as: balance enquiries, account transfers, billpayments and some of
them offer even the possibility to make loan or credit card applications on a website operated
by the institution via internet at any place or time.
The e-banking is referred to as online banking or internet banking. The banks have choosen to
be part of the wide world of Web in order to stay competitive in the fast changing world of
business and also to take further advantages. This inovation (accompanied by globalization
and technology developement) has”obliged” the business entites to redefine and remodel
their operations.
Electronic banking is the wave of the future. It provides enormous benefits to consumers in
terms of the ease and cost of transactions. But it also poses new challenges for country
authorities in regulating and supervising the financial system and in designing and
implementing macroeconomic policy.
In the first section there is an overwiev of E-banking products and services offered world
wide and in Albania as a special case. In the second section there is a general overwiev of the
e-banking advantages and disadvantages. In the third part there is a discussion above the
features, challenges, advantages and disadvantages of E-Banking vs traditional banking. In
the last part there are given some general recommendations to be taken in consideration in
order to maintain effective and to further develop the operating environment for the existing
and potential e-banks.
Keywords: E-banking, Economy, Evolution, Transactions, Albania.
Introduction
The history of online banking starts in the early 1980s in U.S and UK but it started to
get its popularity in the late 1980s and had a very different meaning than it does have
nowadays. The term online banking referred to the use of a terminal, keyboard and
television or computer monitor to access one’s bank account using landline telephone.
In 1981 New York City become the first place in the U.S to test this innovative way of
doing business (four of the major banks adopted it: Citibank, Chase Manhattan,
Chemical and Manufacturers Hanover) but however customers were sceptic about
this new way of doing business so it firstly failed but gained attention again in the
mid-1990-s. Customers were hesitant to use e-banking because many didn’t trust its
security features, were unsure how to use it. At the 1990s banks used the web as a
way of promoting its service, without interaction with the customer. Their web pages
provided only information such as images of their building or maps of branches and
ATM locations, phone numbers to call for further information and simple listings of
products.
Wells Fargo was the first bank to start the interactive banking services on the Web in

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