It is no doubt that ICT has fuelled the growth and advancement in many subdivisions of the economy – social, political and financial sectors have all been impacted. The financial sector, in particular banking has moved from the times when the bank records were being kept in manual ledgers and enrols to electronic records maintained, stored and available for easy retrieval at any point when desired. Technological inventions that impacted banking sector had a long way, from the times when ATMs were revealed and used for the convenience of bank customers, decreasing queues in the banking halls to withdraw and deposit money and subsequently introduction of internet in the 1980s.
The introduction of the internet enabled banks to have solicitations which enabled their customers to access their accounts, comprising view of account balances, initiation of transfers and order of cheque books, booking of deposits and such services providing convenience and flexibility to the customers. This was an era of online Banking, to be capable to use such facility, bank customer should either have individual computer or laptop that is connected to the internet and that is why it was referred as Internet Banking.
Today, the different innovation in the banking sector is mobile banking; it is the use of mobile phones to process financial transactions. A number of mobile financial applications have been established and there have been drastic increase in the usage of mobile phones to expedite financial transactions. The earliest form of mobile financial service was SMS Banking that enabled customers to access their accounts through mobile phones by SMS messaging, however this form is still applicable in some banks; WAP technology that supports ‘mobile web’ has made it possible for the banks and non-banks to offer mobile banking in its current form.
Eric Schmidt, chairman of Google once came with slogan ‘Mobile First’ and by then most people did not recognised what it was all about. Now, the time has come when it is evidently seen how the mobiles have become significant tools in our day to day life. We are now reliant on our mobile phones in a number of ways from storage of personal and private information to accessing our financial information through the mobiles.