Modern technology related to products and services based on knowledge reduce the distance between clients and banks which results with focusing on offering of new electronic (online) banking products and services. Today, more and more the question is raised: At what stage each of the electronic or physical market model is more appropriate for banking operation as a function derived from the characteristics of the transaction? The Internet, the quick communication, the coordination and the collaboration help banks to cut transaction costs through virtual integration with their clients. Contemporary information and communication technology (ICT) leads towards reduction of transaction chains and separation of some of the operational activities of the banks, i.e. towards more efficient ways models of banking operation. The paper deals with the challenges that the banking sector is faced as a consequence of the latest developments of ICT. The possibility of making numerous transactions with just one click, the facilitated access of the clients to the internet, the reckless pace and the new way of living, especially due to the Covid19 pandemic, further accelerated the development and the implementation of electronic banking (ebanking). In this regard, the goal of the paper is to explore the new business model that banks need to apply in the contemporary banking operations as well as to point out the advantages and disadvantages of increased e-products and e-service development in the banking operation in an information economy.