Question

Having a broad knowledge in financial innovations from your program of study, you have recently been employed in a new company where the predominant practices are mainly the basic traditional banking. You have been tasked to recommend four main types of electronic banking systems practiced in other banks which has assisted in their growth and innovations as well as keeping abreast with the times and seasons. Link each electronic banking system you will introduce to a type of financial innovation and explain your reasons for the linkage.

Answer 1

Four types of electronic banking system which are practiced in other banks which have assisted in their growth and innovations are as follows-

A. Electronic fund transfer system-this is a type of process development when it comes to financial innovation, because it has innovated the entire traditional strategy of financing by introduction of an electronic system which will save the time and secure the transaction and overall better the financial process.

B. Mobile banking-it is a type of financial product innovation which has led to innovation of financial operation through embedding it with the mobile and it is a product innovation.

C. Internet banking-it is another type of financial innovation which is used to connect banks to the customer through internet and it is a type of institutional financial innovation.

D. Remittances are another area where financial innovations are transforming and it is related to the overall financial process which is used to remit the realisation back to the domestic country.