ALSEGO blog post


Author: ALSEGO (November 10, 2020)

In the realm of financial technology: What is ebanking?

blog post 2020-11-10

For the linguists among you, eBanking is a contraction of electronic banking and covers the scope of banking services and payments delivered electronically, or digitally. It serves as an encompassing term for clients accessing their bank accounts online. The vast majority of banks have an online banking platform, and many of you have presumably logged on to your bank's website and accessed your personal or business dashboard with an overview of your accounts and balances, and have made payments using it.

For those of you that regularly use your bank's online banking platform, the convenience and the time it saves is incredible. Remember how it used to be done? Do you remember the last time you visited your local branch? Exactly, it's great and the internet banking experience is only getting better.

Payments have been given a healthy dose of innovation thanks to the introduction of PSD2, the second payment service directive to come from Brussels. PSD2 places an obligation on banks to allow certified TPPs, third-party providers, to access financial data or facilitate payments directly from your current account, subject to your consent. This has sparked a considerable amount of interest from the banking community to revaluate their business model, and has ensued massive invests in FinTech solutions & FinTech companies, in order to optimise and accommodate the dynamic nature of electronic banking.

E-banking relies on secure connections, and connecting yourself to your web banking portal is a point of contention between some banks and financial regulators. In order for your bank to know it's really you logging in and not an imposter, they require authentication systems. ALSEGO announced that it will integrate FIDO2 authentication into its Opium.eBanking™ platform, thus providing an additional option for user verification on top of the numerous systems that ALSEGO already caters for. The shift towards multifactor authentication has brought some much-needed trust back into the banking system and has arguably been the impetus for increased use of digital banking platforms everywhere, notwithstanding the current global health crisis of course.

Taking out a loan, mortgage or investing your hard-earned cash is facilitated by ebanking these days, but the level of automation is increasing year on year. Ever noticed a notification in your ebanking dashboard or mobile app advertising an easy way to invest in just a few clicks? The automated processes deployed to enable previously complex actions have profoundly made the financial sector more agile, more competitive and more performant.

ALSEGO publication.