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Britannica Money
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electronic banking

By Doug Ashburn
Doug Ashburn
Doug AshburnExecutive Editor, Britannica Money

Doug is a Chartered Alternative Investment Analyst who spent more than 20 years as a derivatives market maker and asset manager before “reincarnating” as a financial media professional a decade ago.

Before joining Britannica, Doug spent nearly six years managing content marketing projects for a dozen clients, including The Ticker Tape, TD Ameritrade’s market news and financial education site for retail investors. He has been a CAIA charter holder since 2006, and also held a Series 3 license during his years as a derivatives specialist.

Doug previously served as Regional Director for the Chicago region of PRMIA, the Professional Risk Managers’ International Association, and he also served as editor of Intelligent Risk, PRMIA’s quarterly member newsletter. He holds a BS from the University of Illinois at Urbana-Champaign and an MBA from Illinois Institute of Technology, Stuart School of Business.

Fact-checked by The Editors of Encyclopaedia Britannica
The Editors of Encyclopaedia Britannica
The Editors of Encyclopaedia Britannica

Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.

Electronic banking is the use of computers, phones, and other technologies to facilitate banking transactions rather than through human interaction. Electronic banking includes features like electronic funds transfer (EFT) and mobile payments for retail purchases, automatic teller machines (ATMs), automatic paycheck deposits, and automated bill payment.

In the 21st century, banks have set up secure, encrypted access to their websites—and later to mobile apps—enabling clients to access their accounts, view account balances, transfer money among accounts, purchase certificates of deposit (CDs), and—if connected a brokerage account—buy and sell stocks, bonds, and other securities.

Electronic banking has greatly reduced the need to move paper money and coins from one place to another, and humans are no longer required to facilitate every banking transaction.