Online banking which is also known as internet banking is an electronic payment system that enables customers of a bank or other financial institutions to conduct a range of financial transactions through financial institution’s website. The online banking system will usually connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way to do banking.
A few banks operate as a “direct bank”. This is where they rely solely on internet banking. Internet banking software provides personal as well as corporate banking services that offer such features as viewing account balances, obtaining statements, checking recent transactions and making payments. The access is typically through a secure website that uses a username and password. However, most banks offer two factor authentication that uses a security token as security is definitely of the utmost priority.
Online banking was first introduced in Malaysia through Maybank in the year 2000. It was the first bank in Malaysia to provide Malaysians the convenience of banking through the internet from anywhere in the world. That new service could be accessed through www.maybank2u.com. It was launched by the Governor of Bank Negara Malaysia Dr Zeti Akhtar Aziz. With this introduction, Malaysian could participate in online banking but were limited to only viewing their banking details. It took a few more years for online shopping or Ecommerce Malaysia to arrive in the country. Customers could only buy products through a company’s website though. For example, customers who wanted to buy Adidas sneakers could only buy it from the official Adidas website as websites such as Lazada or Shopee did not exist then.
Online shopping now is so big and popular now due to online banking where eager customers are able to painlessly and quickly browse, add to cart and checkout so seamlessly thanks to integrations made from websites such as Shopee and Lazada to the bank of the customer.