Essay On Home Banking

Home banking, in general terms, is the practice of undertaking banking transactions away from the bank’s physical location, more so conducting them from home. In essence, this form of banking is conducted through an internet platform. The transactions are done through electronic means. The customer is able to access his or her account details, funds or other banking facilities through a personal computer or mobile phone internet from the comfort of their homes or offices.

This form of banking was conceptualized as early as 1970 where the bankers were exploring new, better and more efficient ways of serving and attracting more customers. In 1981, articles promoting home banking by way of telephone were published by the ‘American Banker’ . The initial real form of home banking involved the use of Touch-Tone telephone. With the development of internet, however, home banking was revolutionized and the web based home banking gained root.

Home banking has a lot of advantages, to both the banker and the customers. They include the following:

• Customers can conveniently access their accounts and perform various transactions without having to be physically present at the branch or the bank’s physical location. This saves their time and travelling costs .

• Online transactions are speedier than the transactions at the bank’s premises where a customer is required to queue.

• Home banking has diversified the banking industry and hence increased competition among the banks. This kind of competitiveness is always an advantage to the customers as it results to the banks improving the quality of their services as they try to out-do each other to attract and retain more customers.

• Customers are able to efficiently keep track and record of ...

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...nsfer money to or from their bank accounts and with the latest development and launch of M-Shwari, save money and get loans.

The advantages of mobile banking are many. For example:

• Users make their transactions more easily.

• It reduces the risks of carrying cash around.

• It is convenient as users can conduct their transactions anywhere and at any time.

• Customers do not need to go to the bank’s physical location and hence saves on time and cost.

The facility is however not without shortfalls. They are as follows:

• It is susceptible to fraud. Criminals have perfected the art of conning M-Pesa users.

• The cost of withdrawing money from the bank through mobile phone banking is a bit higher than using the bank’s Automated Teller Machine or over the counter.

• Since it relies on mobile phone network, people in areas without this network cannot use this facility .