Forms of Electronic Banking: Evolution, Advantages and Disadvantages

Electronic banking as a way of providing banking services gained popularity in developed countries and gradually captures the Ukrainian financial and credit sector. The aim of the article is to identify strengths and weaknesses of the main forms of electronic banking for both banking institutions and potential customers. The evolution of forms of electronic banking is analyzed, and the features of functioning of the various forms of this type of service are revealed. It is found that the development of forms of electronic banking has passed certain stages that led to the emergence of effective and convenient tools that correlate with advanced achievements of information technology. The trends in the introduction and use of basic forms of electronic banking (Internet banking and mobile banking) in developed countries and in Ukraine are determined. The analysis of the functioning of Internet banking and mobile banking is performed, and the main advantages and disadvantages of the use and implementation of these forms of electronic banking for both potential clients and banking institutions are identified. The basic reasons that impede the development of electronic banking in Ukraine (especially Internet banking and mobile banking) are revealed.