These are electronic banking organisations which provide banking services but which have no branches. An account is created when users sign on and transfer funds from traditional bank into the new e-bank account. Obviously e-banking enjoys significant reduction in operating and overhead costs and several different e-banking systems now exist:
- Traditional banks which still charge same fees
- New electronic banks which don't charge fees
- Brokers which manage investment accounts
- Credit card companies which provide online credit facilities
- Insurance companies which provide account operations.
As with all financial activities on the Internet, e-banking can be risky. Users of these systems should be aware that online banking is a major target for organised crime and should make thorough checks on the organisation (using rating agencies, banking associations, etc) before signing up as a customer.