Electronic Financing or E-financing is the money amount recorded electronically and stored on an electronic device or electronically readable device. With modernisation, it is becoming more and more common to pay through electronic channels for services and goods. Even the transactions have become more accessible due to the use of electronic financing. The idea of digital cash was first introduced by David Chaum in a research paperback in 1983. In a situation such as nowadays, electronic cash proves much more convenient than retail money, and it also solves many problems related to retail money. A person can use a weightless smart card, or an NFC enabled smartphone for making transactions (Glukhov, et al., 2015).

Moreover, if the person wants, he can pay for any services or products through websites and smart applications (O'Sullivan, 2016). For security purposes, users can keep a record of their account activity through their smartphone app and even if they lose the smartphone the other person would not be able to access the account due to many security features. Implementation of such modern systems requires time for people to pace up with the change. They need to be shown the importance and convenience of e-finance. There is also a need for awareness and training of common public regarding this matter.

In this report, we will discuss different types of E-financial services, their advantages and disadvantages and also analyse the digital finance services present in Oman sultanate.

Types of E-financial services

The term e-finance is defined differently by different people. It can be defined as a way of providing financing instruments to an organisation through technological and electronic tools along the finance process, and this includes the use of electronic means for utilising e-finance services to create proper finance conditions and regulate the risks associated with the finance. E-finance simply is the use of the internet and other technologies in financial services. This allows people to make financial transactions without the need for human contact. This saves time and reduces the chances of fraud. In this today technological age, E-finance has become synonymous with entrepreneur businesses and investors. Because of the increased awareness of the internet and technology, E-finance has arisen as a solution to abridge the complications involved in dealing with finance. Following are five E-financial services present globally (Dandapani, 2017).

Digital Banking Services of E-Financial Services

Digital banking is defined as the process by which a customer can make banking transactions but using automated delivery banking services, using electronic means (Lipton, et al., 2016). Development of service providence channels such as digital banking has resulted in the creation of a new type of economy. Digital banking has also increased knowledge in areas of business and commerce. Growth of technology and internet globally has enabled the rise of digital banking. Digital banking is becoming an essential part of the modern banking industry. Digital banking enables organisations to provide the customer with regular activities and to corporate customers as well.

Digital banking provides customers with a wide range of services at a reasonable cost including; cash withdrawal, Deposits, transactions, transfer and payments. The early initiative of digital banking is to reduce working costs. The digital banking system should be a common one so that all the customers could facilitate from it. The banking industry has already begun to focus on providing more and more online services to the customers; handling of these essential services is vital for the prevalence of digital banking. Digital banking is focusing on providing features such as:

· Lower costs.

· Personal customisation of services.

· Reduced processing times.

· Rapid and flexible transactions.

Types of digital banking include:

· Internet banking.

· Automated Teller Machines.

· Telephone Banking.

· Mobile Banking.

Global money transfer of E-Financial Services

Global money transferring is the process of transferring money using electronic means to transfer money across borders through the assistance of money transfer operators. Out of the several options available for money transfer, online money transfer is considered one of the best options by many. Online global money transferring is rapidly replacing methods such as wire transfers and offline bank transfer. Both of these methods are less efficient, slower and costlier than online money transfer. This removes the need for visiting a bank for transferring money. All one needs is the internet and a smart device to make transactions from anywhere (Bezovski, 2016). Some of the benefits of using Online global money transferring over traditional global money transfer are below:

· Online money transfer offers a low cost of exchange rates. That is why they are replacing banks. Online money transfer operators focus on higher turnovers rather than higher profit. They even provide options to fix future exchange rates.

· Online global money transfer gives options of a more extensive array of currency options.

· Online money transfer is available 24/7 all the days of the year.

· It is much easier to track the progress of the transfers and transactions.

· It is incredibly safe and secure because the trusted operators use the highest security standards of the industry.

· Global money transfer operations have become much more customer-friendly, and they provide efficient customer service.

· There are no hidden charges such as bank fees, clearance charges, commission and taxes.

BlockChain of E-Financial Services

Blockchain offers more transparent, inclusive and secure business networks, shared operation processes and decreased cost and services in banking and finance. Blockchain is a system in which the records of transaction processed in cryptocurrency are organised and maintained across many computing systems present globally and linked together through a peer network. Blockchain in financing allows the transaction processing times to be reduced, minimal costs and with a higher degree of customisation (Lee & Deng, 2018). Over recent years the blockchain technology has matured and provided the following features:

· The distributed and transparent architecture of blockchain eliminates single points of fiasco and reduces the need of intermediary managers such as agents, operators and inefficient utilities. Blockchain also provides an implementation of secure code that is interference proof.

· Blockchain provides transparent standards and protocols and processes.

· The transparent ledger of blockchain enables trust-building.

· Blockchain provides the opportunity to create and execute smart contracts.

· It provides efficient for data privacy across every level of the application system.

Smart card payments of E-Financial Services

Smart cards provide significant benefits to the modern consumer world. In addition to its potential for storing information, the storage value capabilities can be utilised in many practical ways. One of the most common uses of the smart card is the stored values which can be then utilised to make cash-free auditable transactions. The smart card also provides financial benefits. Smart cards are much more convenient and safer than paper cash. This technology enables us to make more efficient business processes that assist in electronic payments. Accounts payments can be made as either debit or credit (Mitra, et al., 2016). The smart cards can effectively be used in making in-store transactions. Smart card payments are effectively being used in the health care industry and are being used for insurance and health care purposes. Fraud can be easily reduced by the use of smart cards due to the computer chip in the card all the transactions, and thee stored data is encrypted and safe from being stolen. These capabilities prevent customers from becoming victims of identity theft. Smart cards are a powerful technology that can easily be used for storage of information as well as processing it.

Smartphone payments of E-Financial Services

Payments using smartphones are becoming more and more common. In this, the transactions are accessed through a mobile application, and the payments can be made with a single touch using NFC. This payment method is secure as no one can make a transaction from your application without security code and fingerprint. Almost all the banks have created their mobile phone apps, but the major benefit of smartphone payment is provided by online wallets such as google pay and WeChat. These are being used as a replacement for the smart cards. These are functional for both online and offline payments many retail stores are offering NFC purchasing (Sharma, et al., 2017).

Advantages of E-finance

Advantages of E-finance are:

· The cost of using E-finance is much less than traditional finance.

· E-finance dramatically reduces transaction times and process. It removes all the intermediaries and links one person to the other direction.

· It requires minimal infrastructure, unlike traditional financing.

· Electronic cash has made it possible to easily make global transactions from the comfort of home or office.

· The cost of service in digital banking is lower per customer. (Mbama & Ezepue, 2018)

· It is much more convenient as the customers are not required to go to any office or bank.

· Customers can receive funds from ATMs anywhere.

· Smart cards allow for the customers to avail specific discounts.

· There is a convenience of transferring funds anywhere and anytime.

· E-finance services are much more secure than traditional banking.

· Blockchains allow the transaction verification without the need of any third parties.

· Data in the blockchain can not be removed or altered.

· The ledgers in the blockchain are secure due to the use of cryptography.

· In blockchain transactions, all the data is secured afterwards with maximum authentication.

· Due to e-finance applications, a person can use their mobile phone banking app to make transactions from one account to another with the internet. It is available at any time and any day. Mobile banking is more secure as you do not need to leave your house. Many banking services can be accessed through mobile banking such as bill payments, funds transfer etc.

Disadvantages of E-finance

· For E-finance and E-finance, transactions security is a significant issue. E-cash frauds and stealing are becoming more common due to hackers. Hackers can access the account even though it is challenging and obtain the records and make transactions from the account. Hackers have developed many tricks for fooling the E-financers (Sharma, et al., 2016).

· Because of such smooth flow, it is difficult for government organisations to track suspicious and illegal money transactions. It is also difficult for the governments to keep check of in and out flow of the money from the country.

· Low-income groups are unable to benefit from the services of E- finance due to lack of resources such as access to the internet and smart devices.

· There is also the issue of electronic device failures that could lead to data loss.

E-financial services in Oman

Two of the e- financial services that are being widely used in Oman are digital banking and online global payment systems. Strong banking institutions are necessary for every country. Despite the complete acceptance of digital banking and online payments, a developing country like Oman is still hesitant in adopting the trend entirely. The institutions that have failed to adapt to the concept of digital banking are foolish because the cost of implementing digital banking is less than opening a bank branch. If the Omani banking industry desires to be successful in the global economy, then they need to implement internet and technological services into their processes. The growth rate of e-finance in Oman from 2016-2023 is given in the below chart.

The primary reasons that digital banking is still not widely implemented in Oman are:

· Reduced profitability in the beginning and costs of implementing technologies and the requirement for economies of scales.

· Customers still are not comfortable with trusting online platforms and digital cash.

· Customers are already committed to traditional means and are hesitant to leave those.

· A majority population, especially the older generation which hold the majority of the finance lack knowledge of e-finance methods and benefits.

As far as online payments systems are concerned Omani people are mostly shopping online for almost every category of products. They have extensively started using online payments for availing both local and international services and products, and this trend is becoming more and more popular, especially in the current situation due to COVID-19.

Conclusion of E-Financial Services

E-finance is a growing service. It is available in many different forms and different uses. Some of these digital services are more commonly users. The e-finance has many advantages over traditional financing, especially in reducing costs, saving time and simplifying the process. E-finance also significantly reduce the need for human contact, which is hugely beneficial in the current situation. Despite the numerous benefits, there are still some complications present that are making the implementation of e-finance services difficult. These problems are more visible in developing countries like Oman. For global implementation, there is a need for developing a generalised system of e-finance and increased awareness among the public masses about its benefits.

References of E-Financial Services

Bezovski, 2016. The future of the mobile payment as electronic payment system. European Journal of Business and Management, 8(8), pp. 127-132.

Dandapani, 2017. Electronic finance–recent developments. Managerial Finance..

Glukhov, Ostanin & Rozhkov, 2015. E-Money and E-Finance as Economic Category.. Mediterranean Journal of Social Sciences, 6(6), pp. 448-448.

Lee & Deng, 2018. Handbook of blockchain, digital finance, and inclusion: Cryptocurrency, FinTech, InsurTech, and regulation., s.l.: ink.library.smu.edu.sg.

Lipton, Shrier & Pentland, 2016. Digital banking manifesto: the end of banks?.. s.l.: Massachusetts Institute of Technology..

Mbama & Ezepue, 2018. Digital banking, customer experience and bank financial performance. International Journal of Bank Marketing..

Mitra, Jha & Radiius, 2016. Smartcard Payment System and Method.. U.S. Patent Application.

O'Sullivan, 2016. Finance and innovation., s.l.: s.n.

Sharma, Govindaluri, Al-Muharrami & Tarhini, 2017. A multi-analytical model for mobile banking adoption: a developing country perspective.. Review of International Business and Strategy..

Sharma, Tripathi & Tyagi, 2016. Status of Resources for Challenges in E-Finance. International Journal of Business & Engineering Research.