The aim of the paper is to look at the emergence and evolution of e-banking in Saudi Arabia, with particular emphasis on the processes of how banks implement e-banking to improve their capabilities as well as to create new value strategies. The paper makes use of a combination of case study approach as research methodology and network approach as theoretical framework. Specific questions addressed are (1) how e-banking has been developed, (2) how banks align their demand and supply-side factors, and (3) what has been the role played by e-banking in shaping the strategic direction of banks. The answers to these questions are grounded on the results of empirical research recently conducted on a major Saudi bank.