What are the benefits for the bank from the e banking?

Answer 1

By and large, e banking is paperless. That's a savings for the bank. Much time in a bank is spent in processing paper. Remove the paper, realize the savings. Another thing is personnel. E banking can be done without a fully staffed local bank. It's all contained in a server and some 'blades' in a room the bank already owns. That means there are wages, benefits, pensions, employees schedules, unexpected absences, and a plethora of other HR headaches the bank doesn't have to deal with... or pay for. Then there are the EFTs and the ACHs. These are electronic funds transfers that - once again - require no paper documents. Customers can transfer funds to and from online accounts with brokers, and the bank doesn't have to get its hands dirty. Customers can have their paychecks automatically deposited to their account, pay their bills, speculate on stocks, make a killing, take the money out of the market, deposit it back to their account, spend it out on the street with a debit card, all without driving over the curb, parking, walking into the bank or EVER SEEING a teller! Once again, for a small scale operation, this can ALL done out of a 19" equipment rack in a closet... or a very small equipment room. Of course, the larger the bank's client base, the bigger the room gets. Then the economies of scale start to kick in. Banks were slow to adopt electronic banking at first. The equipment was initially expensive. But now, the costs have been substantially pared down, and e banking has been roundly embraced by the banking industry.