Forms of Banking

The advancement in information communication technology recently has made it possible for banks to change their operations from manual to full electronic banking platforms.

Electronic Banking:

Electronic banking is a banking system in which the customer conducts transactions electronically via the Internet using a personal computer.

With electronic banking, the customer can:

1. Transfer money from one account to another.
2. Pay utility billsA utility bill is a monthly statement of the amount a household owes for any one (or more) of the basic services that generally keep a home operable and comfortable. Examples... More such as phone, electricity, water bills, etc.
3. View and print his account statement with the bank.
4. Manage and monitor his or her account on a 24-hour basis.

Some types of electronic banking are:

• Electronic Funds Transfers.
• Internet Banking or Online Banking.
• Networking Banking.
• Member card.
• Telephone mobile banking.
• Home/PC Banking.
• Automated Teller Machine (ATM)

Electronic Funds Transfer: Electronic Funds Transfer (EFT) is used to transfer money from one location to another as instructed by the owner.

Internet Banking or Online Banking: This involves carrying out the business transaction by visiting the website or mobile application (app) of the bank concerned.

Network Banking: The banks, with a view of making banking transactions easier recently introduced network banking. In the network form of banking, the bank normally links their branches through radio or a network of communication making it possible for a customer having an account in one branch of a particular bank to deposit or withdraw money from another branch.

Member Card: These are cards issued by banks or corporate bodies to their customers with some amount of money credited to them.

Telephone Mobile Banking: This form of banking is provided by most banks to their customer on a twenty-four-hour basis. The customer’s phone is configured by the bank to access his/her account in order to enable him or her to carry out transactions with his/her phone.   

Home/PC Banking: This electronic banking facility is extended to a reputable bank customer with a personal computer, which is linked to the bank’s network.

Automated Teller Machine (ATM): This is a computerized self-service device which enables the holder of an ATM card and Personal Identification Number (PIN) to withdraw cash from his or her account and have access to other banking services like transferring money to other accounts, viewing their account balance etc.

The ATM card is slotted into the ATM and the customer is identified after entering his or her PIN which is usually a secret 4-digit number.

A holder of an ATM card can use it to perform the following banking activities:

(i) Make cash withdrawals from his or her account.

(ii) Check his or her account balance.

(iii) Transfer money to other accounts.

(iv) Make payment of bills

(v) Make purchases online and at retail establishments.

(vi) Purchase pre-paid mobile phone credit, airline tickets, etc.