E-finance

Definition

E-finance is defined as "The provision of financial services and markets using electronic communication and computation". (Franklin Allen, James McAndrews & Philip Strahan, 2001)

E-finance is a kind of E-business. It is related to E-teaching, E-journal, E-audit, E- housework and so on. The main purpose of E-finance is to use the artifice of information technology, such as internet, to make the business of finance more easy to handle and to access. There are several sub-systems for a typical E-finance system. They are Computer Aided Management System, Information Administration System, Decision-making Supporting System and Electronic Data Process System. The most important application of E-finance is the E-bank, which is known as on-line bank. The E-bank promises "AAA" services, which is to provide services at Anytime, Anyhow, and Anywhere. E-banks are very convenient to use, but there are still some problems with it. The most serious problem is security. It gives the hackers big opportunities to access other people's bank account via the internet to transport the bank's business onto web. Besides, there are problems with legislation of E-banks, problems with industry standards, and so on. [link]

With the development of E-bank, E-money is becoming more common. The first form of E-money is the credit card. Then it becomes E-purse. Finally, E-cheque will show up. It is just a matter of time. [link]

Related Areas for E-Finance

1. E-teaching With E-teaching, teachers will not give lectures at the same time same place every week. They can post their teaching materials and homework on the web, and students can hand in it on the web. The website will judge their homework automatically, according to the answers provided by the teacher.

2. E-audit This area includes the audit of manuscripts and the audit of projects.

3. E-journal It is similar as the E-commerce. The users can use the E-journal to find materials they want, for example, the E-special of IEEE papers. The contributors can also submit their papers via the internet. It is very convenient.

4. E-community The concept of E-community is more popular recently. People can do anything as they do in a real community when they are in the E-community. E-community is a virtual community. For example, in this community, people can play chess, chat, and play games for each other.

Future of E-Finance

There are many kind of firms have adopted the concept of E-finance, such as the Financial Intermediaries, the Insurance, and the Securities Firms. The application of E-finance would have some impacts on financial markets. The most infected area is the Stock Market. For example, in the U.S.A., there are many Electronic Communications Networks (ECNs) in the trading of NASDAQ-traded stocks. E-finance is the most important direction of the world economy. As people getting more dependent on the web, the financial business will be all transferred to be electronic sooner or later. It's just a matter of time.

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