STUDY OF E-BANKING AND RISKS

Abstract

The rapid adoption of electronic banking (e-banking) has transformed the financial sector, offering convenience, speed, and accessibility to customers globally. However, the digital nature of e-banking introduces several risks, including fraud, identity theft, system failures, data breaches, and cyberattacks. This project aims to study the types of risks associated with e-banking systems and explore how Machine Learning (ML) and Deep Learning (DL) can be applied to detect, analyze, and mitigate such risks. By leveraging real-time transactional data, user behavior, and threat intelligence, intelligent models such as Random Forest, SVM, and LSTM neural networks can classify anomalies, detect fraud patterns, and enhance risk monitoring. The study demonstrates that incorporating intelligent models into e-banking infrastructure not only improves security but also strengthens customer trust and operational resilience.
The rapid growth of information and communication technology has revolutionized the way banking services are delivered, giving rise to what is now known as electronic banking (e-banking). E-banking refers to the use of digital platforms—such as internet banking, mobile applications, ATMs, and digital wallets—to perform traditional banking functions like fund transfers, balance inquiries, loan applications, bill payments, and more. It has brought about a paradigm shift in customer experience, enabling users to access banking services 24/7 from any location, thereby improving convenience, efficiency, and accessibility.While e-banking has empowered customers and reduced operational costs for banks, it has also introduced a new set of risks and challenges. These include cybersecurity threats, identity theft, data breaches, phishing attacks, service outages, and technical glitches, which can compromise sensitive financial information and erode customer trust. Moreover, regulatory compliance, technological adaptability, and digital literacy remain significant concerns for banks striving to ensure secure digital operations.