What is E-Banking and Evolution

Community Bank Online ~ What is E-Banking and Evolution | What is E-Banking? In its very basic form, e-banking can mean the provision of information about a bank and its services via a home page on the World Wide Web (WWW). More sophisticated e-banking services provide customer access to accounts, the ability to move their money between different accounts, and making payments or applying for loans via e-Channels. 

The term e-banking will be used in this book to describe the latter type of provision of services by an organization to its customers. Such customers may be either an individual or another business. To understand the electronic distribution of goods and services, the work of Rayport and Sviokla (1994; 1995) is a good starting point. They highlight the differences between the physical market place and the virtual market place, which they describe as an information-defined arena. 

In the context of e-banking, electronic delivery of services means a customer conducting transactions using online electronic channels such as the Internet. Many banks and other organizations are eager to use this channel to deliver their services because of its relatively lower delivery cost, higher sales and potential for offering greater convenience for customers. But this medium offers many more benefits, which will be discussed in the next section. A large number of organizations from within and outside the financial sector are currently offering e-banking which include delivering services using Wireless Application Protocol (WAP) phones and Interactive Television (iTV). 

Many people see the development of e-Banking as a revolutionary development, but, broadly speaking, e-banking could be seen as another step in banking evolution. Just like ATMs, it gives consumers another medium for conducting their banking. The fears that this channel will completely replace existing channels may not be realistic, and experience so far shows that the future is a mixture of “clicks (e-banking) and mortar (branches)”. Although start up costs for an internet banking channel can be high, it can quickly become profitable once a critical mass is achieved. 

Evolution of E-banking 

There have been significant developments in the e-financial services sector in the past 30 years. According to Devlin (1995), until the early 1970s functional demarcation was predominant with many regulatory restrictions imposed. One main consequence of this was limited competition both domestically and internationally. As a result there was heavy reliance on traditional branch based delivery of financial services and little pressure for change. 

This changed gradually with deregulation of the in dustry during 1980s and 1990s, whilst during this time, the increasingly important role of information and communication technologies brought stiffer competition and pressure for a faster pace of change. The Internet is a relatively new channel for delivering banking services. Its early form ‘online banking services’, requiring a PC, modem and software provided by the financial services vendors, were first introduced in the early 1980s. However, it failed to get widespread acceptance and most initiatives of this kind were discontinued. 

With the rapid growth of other types of electronic services since mid 1990s, banks renewed their interest in electronic modes of delivery using the Internet. The bursting of the Internet bubble in early 2001 caused speculation that the opportunities for Internet services firms had vanished. The “dot.com” companies and Internet players struggled for survival during that time but e-commerce recovered from that shock quickly and most of its branches including e-banking have been steadily, and in some cases dramatically, growing in most parts of the world. 

One survey conducted by the TechWeb News in 2005 (TechWeb News, 2005) found e-banking to be the fastest growing commercial activity on the Internet. In its survey of Internet users, it found that 13 million Americans carry out some banking activity online on a typical day, a 58 percent jump from late 2002. The spread of online banking has coincided with the spread of high-speed broadband connections and the increasing maturation of the Internet user population. Another factor in e-banking growth is that banks have discovered the benefits of e-banking and have become keener to offer it as an option to customers.

Comerica Federal Deposit Insurance Corporation (FDIC)

Community Bank Online - Federal Deposit Insurance Corporation (FDIC) Insurance Coverage - Comerica Bank can be a Member FDIC. Therefore, the FDIC insures all deposits at Comerica Bank.

Comerica Federal Deposit Insurance Corporation (FDIC) # Depositor Types: FDIC coverage is available to all depositors, including consumers, businesses, and government entities.

Comerica Federal Deposit Insurance Corporation (FDIC) # Deposit Types: FDIC insurance covers various deposits received within an insured bank, including deposits inside a bank account, Negotiable Order of Withdrawal (NOW) account (a/k/a interest-bearing checking account), piggy bank, Money Market Investment Account (MMIA) or time deposit like a certificate of deposit (CD).

Cashiers' checks, officers' checks, expense checks, loan disbursement checks, interest checks, outstanding drafts, negotiable instruments and your money orders utilized Comerica Bank are also considered deposits, and are addressed by FDIC. Collectively, these kind of instruments are referred to as "official checks."

Comerica Federal Deposit Insurance Corporation (FDIC) # Standard Coverage Limit: The standard FDIC insurance plan amount is $250,000 per depositor, per insured bank, for every ownership category.

The actual basic FDIC ownership categories in addition to their aggregate coverage limits are as follows1:
The FDIC insurance plan limit applies per depositor, per insured depository institution for every account ownership category. Your chance above shows only the most frequent ownership categories that connect with individual and family deposits, and assumes that every FDIC requirements are met

1. Single Accounts (properties of one person): $250,000 per owner
2. Joint Accounts (2 or more persons): $250,000 per co-owner
3. IRAs and certain other retirement accounts: $250,000 per owner
4. Trust Accounts: $250,000 per owner per beneficiary

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Because of the enactment in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, FDIC current standard maximum deposit insurance amount (SMDIA) limits were permanently increased from $100,000 to $250,000 per depositor.

Comerica Federal Deposit Insurance Corporation (FDIC) # Important Info About Deposit Insurance Policy: Sterling Bank, Bank of the Hills and Comerica Bank are similar FDIC-insured institution. Deposits held under Comerica Bank or even the trade names Sterling Bank or Bank from the Hills usually are not separately insured but you are combined to determine whether a depositor has exceeded basic federal deposit insurance limits.

Comerica Federal Deposit Insurance Corporation (FDIC) # Additional Resources: For specific more knowledge about FDIC ownership categories, or compute your actual insurance plan amount, it's also possible to make use of these FDIC resources:

• FDIC Insurance Ownership Categories: http://www.fdic.gov/deposit/deposits/insured/ownership.html
• FDIC's Electronic Deposit Insurance Estimator (EDIE): https://www.fdic.gov/edie/index.​html​
• Call the FDIC Toll-Free at: 877.ASK.FDIC (877.275.3342)