What is meant by EFT in the context of financial processes?

In the context of financial processes, EFT stands for Electronic Financial Transactions. The term refers to the digital exchange and processing of financial data and services, which can include transferring funds, initiating payments, and conducting various other financial operations electronically. This is crucial for enhancing efficiency and accuracy in financial transactions compared to traditional methods, which often involve paper-based processes.

Electronic Financial Transactions streamline workflows, reduce manual errors, and facilitate quicker processing times. They encompass a range of activities, such as online bill payments, direct deposits, wire transfers, and automated clearing house transactions. Understanding EFT is essential in today's digital economy, where rapid and secure transactions are necessary for effective financial management and operational success.