Electronic or e-banking is an umbrella term referring to the ability of customers to perform basic to advanced banking transactions electronically (i.e., remotely) without having to visit a brick-and-mortar structure. E-banking is also referred to as personal computer (PC) banking, internet banking, or online banking. (Phone banking services also fall under this category). To date, the majority of the world’s major and minor banks have established, at a minimum, informational websites to support customer inquiries. However, it is websites with transactional capabilities that are being increasingly demanded by consumers. The primary benefits of e-banking are convenience for the customer and vast cost savings for the banks themselves.

As of yet, e-banking in Russia has made very few inroads. Indeed, few banks have entirely modern or sophisticated technological set ups in their own brick-and-mortar sites, let alone the ability to launch interactive, consumer-oriented websites and web-based services. As noted in the Banking section above, it is also extremely difficult (or rather, rare) for Russians to have access to credit cards, leaving most to rely on cash transactions. This is obviously a less-than-ideal situation for the nation, but also for banks and their customers.

It should be noted, however, that the Russian government has made a (late) but strong entrance into the IT market in terms of visible and vocal support for the strengthening of Russia’s IT infrastructure and the role of offshore software development in the overall economy. Of particular interest to the government is technology related to the financial services industry, another clear sign that Russia is poised for major changes in the way its millions of citizens can—and will therefore increasingly demand—to do business.