Online and mobile banking
Online banking is the practice of making bank transactions or paying bills via the Internet whereas mobile banking refers to the availment of banking- and financial services with the help of mobile phones.
Internet banking has gained wide acceptance internationally and seems to be fast catching up in India with more and more banks entering the fray.
Private and foreign banks have been the early adopters while the PSU banks are also beginning to latch on to the bandwagon.
ICICI Bank was the first to introduce online banking in 1996, and a host of other banks soon followed suit. With ICICI online iBanking service, customers could transfer funds to ICICI and non-ICICI bank accounts with a click of their mouse. The application covered savings accounts, demat accounts, credit cards, and loan accounts. Soon, customers could also pay all their utility bills through this facility. This contributed greatly to set the trend for online banking.
In March 2008, Barclays in India launched a unique mobile banking initiative in the country called ‘Hello Money’.1 With this, Barclays hoped to expand its customer base in India despite the restrictions on foreign banks on opening multiple branches.
‘Hello Money’ provided Barclay’s customers with the convenience of carrying out banking transactions such as fund transfers, bill payments, requests for doorstep banking, and other banking services, in addition to making account enquiries, through their mobile phones.
There are various advantages associated with online and mobile banking
Unlike traditional banking, online & mobile banking sites never close. They’re available 24 hours a day, seven days a week, 365 days a year.
They initiate speedy transactions, are very cost effective and are generally quicker than the transactions conducted at the ATM’s or at the bank
However, Banking transactions done over the phone or web can be a little difficult when more complex services are needed like.