Internet banking and how it’s changing the way Africans bank points in a nutshell:
- Has helped increase financial transparency
- Mobile Phone Deposits are an ordinary occurrence
- Has made banking paperless
- No handling cash anymore at least most of the time
- Helped increase access to banking services
- Your money is secure
- Helped open banking to the marginalized
The internet has revolutionized the way we do anything from buying groceries to banking.
You can attribute it to the increase in online transactions and the decrease in brick-and-mortar banks.
Banks are increasingly offering their services online, so they have to compete with companies that provide similar services, such as PayPal and Venmo.
The most popular way for people to the bank is through mobile devices. With this, they can check their account balances and transfer funds without going into a branch or ATM.
For banks to stay competitive, they need to offer all their products in an easy-to-use interface that allows you to do everything you want without hassle or confusion.
What is Internet Banking?
Internet banking, also called online banking, is an electronic means of carrying out financial transactions.
It is a way of carrying out banking functions such as checking account balances and transferring funds without going to a bank branch.
“a method of banking in which transactions are conducted electronically via the internet.” Oxford dictionary
Thus, Internet banking is a type of online banking that allows customers to access their bank accounts and perform transactions over the internet.
What is an Internet Banking Platform?
An internet banking platform is a software that allows customers to access their bank accounts and perform transactions online.
It is a web-based application that provides customers with an interface to manage their finances.
The internet banking platform has been around for over two decades and has evolved significantly.
The first versions of these platforms were elementary, but they have become more sophisticated over time.
As a result, they can now provide customers with a wide range of services, including bill payments, transfers between accounts, and even investments in stocks or bonds.
The first internet banking platform was developed in the 1990s by Wells Fargo. Wells Fargo OnLine allowed customers to access their account information, transfer funds, pay bills, and more.
Today, many different internet banking platforms are available for consumers.
For example, some banks offer mobile apps that allow customers to do everything they need on their phones or tablet.
Other banks provide a website that you can access through any device with an internet connection.
Some banks even offer both options so customers can choose which one they prefer.
What are the benefits of internet banking
The internet banking system has many benefits.
- Account Opening Made easy:
Online account opening is a convenient way to open an account without having to go through the process of filling out paperwork and waiting in line.
- Internet banking saves you time:
It also saves time and money by eliminating the need for postage, printing, and paper.
- Web banking is easy to use:
First, it is easy to use, and you can do it from the comfort of your home. You can also do it anytime, or at night, so you don’t have to worry about missing a deadline.
- Recurring bills payment simplified:
Internet banking has made it easier for people to pay their bills. It is also a convenient way to manage your finances.
- E-banking has made banking widely accessible:
The internet has made banking more straightforward and more accessible. With internet banking, you can access your account 24/7, anywhere in the world.
- No more visits to the banking halls:
Internet banking is a great way to manage your finances and stay on top of your spending habits. It also helps you avoid going to a physical bank branch or ATM.
- Cyberbanking has made transferring funds faster:
The internet has made it easier for people to transfer funds from one account to another. It is because the internet banking system is more convenient and faster than the traditional way of transferring funds.
- Online banking has put your bank records at your fingertips:
The internet has made it easier for people to access their bank records. It is because they can do so from the comfort of their homes.
They don’t have to go to the bank and wait in line for hours to get a glimpse of their account balance.
- Internet banking is real-time financial transacting
The benefits of internet banking are that you can see your account balances and transactions in real-time.
- sync your accounts with your apps:
The internet banking system is also very convenient because it allows you to sync your accounts with your apps. In addition, you can check your account balance on the go and ensure you are not spending too much money.
- mobile apps technology:
Mobile banking is a convenient way to manage your finances. You can do everything from paying bills, transferring money, and checking your balance on the go.
- Enhanced security:
Internet banking is more secure than traditional banking because it doesn’t require you to carry cash or checks.
You can access your account from anywhere with an internet connection.
You can bank any time of day or night without worrying about missing a branch’s hours.
- Cost savings:
You can avoid the cost of check printing, postage, and ATM fees.
- Greater convenience for seniors and people with disabilities:
Internet banking is more accessible for those who cannot visit a branch in person.
Which internet banking platform is best for you?
That depends on your needs.
Do you need to have a physical branch near you?
Do you want to do everything online?
What are your security needs?
Thanks to smartphone technology, most financial institutions (including banks) offer online banking services to their clients.
But there are things you need to consider before choosing a web banking platform.
Some of the critical factors to consider include:
a) One that guarantees Secure Online Banking
Internet banking platforms are not all the same. Some of them offer a better user experience, and some of them provide more security.
The best internet banking platform for you is the one that guarantees secure online banking.
b) One that guarantees Easy Use
Online banking platforms are not all the same. Some are more user-friendly than others. Some have a lot of features, while others are more basic.
The best internet banking platform for you is the one that guarantees ease to use and has all the features that you need.
c) Mobile money capability
You need a platform that guarantees single and bulk Mobile Money transaction processing.
Because you need to use your smartphone to run your banking processes conveniently from anywhere on the planet like a brilliant Kenyan.
d) One that guarantees international class customer services
You are important.
They need to treat you with loyalty for that very reason. If their customer service is sub-standard, run because your money isn’t safe while in there.
Internet banking and how it’s changing the way Africans bank
Internet banking and how it’s changing the way Africans bank points discussed below:
1. Has helped increase financial transparency
The internet has changed the way we bank. It has made it easier for us to access our money and transact.
It has also increased financial transparency at personal and institutional levels, which is good because it helps us keep track of our finances.
Now you have your financial and banking records at your fingertips in real-time.
You don’t need to go to the bank to check your account balance because you use your smartphone to access that information 24 hours a day.
If someone deposits into your account, the bank alerts you immediately via SMS and similarly for withdrawals. It is the norm, at least in Kenya.
2. Mobile Phone Deposits are an ordinary occurrence
Mobile banking is a new trend that allows customers to do their banking on their mobile devices.
It includes checking balances, transferring funds, paying bills, and more.
Mobile banking is convenient because you can do your banking from anywhere at any time with just a few taps on your phone screen.
3. Has made banking paperless
The internet has changed the way we bank.
It has made banking paperless, and it is now possible to access your account anywhere in the world.
As a result, it has helped the world make a step towards a clean environment.
Going green is what the global community is craving for good reasons.
4. No handling cash anymore
We no longer have to go to a physical bank and wait in line for hours.
Instead, we can now do all of our banking from the comfort of our homes.
We can also transfer money, pay bills, and check our balances without leaving the house. It is all possible because of internet banking.
5. Helped increase access to banking services
The introduction of online banking in the 1990s was a significant turning point in how people interacted with their banks.
Still, mobile apps and other digital innovations make it easier to access your account information anytime.
6. Your money is secure
The internet also makes banking more secure.
Because there are fewer opportunities for fraudsters to steal your information when they can’t physically see you enter it into a machine.
7. Helped open banking to the marginalized
Anyone with a simple mobile phone can open a bank account regardless of where they come from, in slums or remote areas.
MPesa: Internet banking and how it’s changing the way Africans bank
MPesa is the world’s pioneer mobile money service provider.
The introduction of MPesa in Kenya is an excellent example of how the internet has changed banking.
MPesa is a mobile phone-based money transfer, financing, and microfinancing service launched in 2007 by Vodafone and Safaricom.
The system’s design allows people without bank accounts to participate in the formal economy and provide banking services for those unable to access traditional banking services.
You need to know that this technology is adopted worldwide as we speak. It is what the world refers to as mobile money technology.
And the ensuing mobile applications as a result.
The M in MPesa stands for Mobile, while Pesa means the money in Swahili.
Conclusion: Internet banking and how it’s changing the way Africans bank
The banking industry has undergone many changes in the last few decades.
The introduction of internet banking has made it easier for banks to reach out to their customers and provide them with their financial needs.
It also has made it possible for people to complete transactions online without visiting the bank’s physical location.
Internet banking is an excellent example of a technology that has changed how we interact with banks, making it easier and more convenient than ever.
Reference: Internet banking and how it’s changing the way Africans bank:
Steve Wanjie is a digital marketing specialist, SEO Expert, expert article writer, blogger, sex educationist, and businessman. He is the founder of Dijito Marketing and Laikipo.com. He works and lives in Nairobi Kenya.