Advancement in Mobile Banking Use

Mobile Banking

Mobile banking is where one can send money through the phone and the receiver access the funds without having to go through the bank.  Majority of the mobile phone companies have collaborated with Banks to enable their subscribers access money in their bank accounts through these money transfer facilities on mobile phones.

The bank customers must subscribe to Mobile banking facilities. subscribers must ensure that confidentiality is maintained. They must also avoid fraud, by use of the secret code which sent to the customer. This code is also known as the Personal Identification Number, which should only be known to the customer and should at no time be revealed to any third party.

This has been a great breakthrough for banks given that their customers can access money conveniently.  They recieve Funds anytime, anywhere and not restricted by banking hours.

Mobile Banking range of services

There are a range of services which the bank’s customers  and banking industry in kenya can enjoy through this collaboration

• They can inquire their bank account balances without necessarily visiting the banks premises or the Automatic teller machine (ATM). This reduces queues in the banking halls and improving on customer service.
• The customer can purchase airtime or phone credit  through their accounts without having to withdraw the cash first and then purchasing the airtime saving on the time for the customer.
• The customer can sign up to be alerted by the bank anytime there is a deposit in their account, for example, salary deposit. Customers do not have to visit the bank premises to be able to budget and even make transactions.
• Bank customers do not have to carry cash which can be a great risk. They are still able to easily pay for goods or services through transfer of the money to the vendor. some of the services include Kenya Airways Tickets purchases, pay for water and electricity bills.
• The customer can transfer money from their bank accounts to their mobile accounts and access the funds.
• In recent days, some mobile service providers have teamed up with international money transfer companies like Western Union. this partnership allows people in the Diaspora to transfer money back home safely and conveniently. the Recepients of such funds are not bound by banking hours to acess these monies unless the bank is an agent of Western Union.

 Mobile Banking and Government Development  Policy and  Planning

With the Vision 2030 in Africa and indeed the developing world,  gearing up for twenty four hours economyis becoming a reality through mobile banking.  Banking in Kenya has greatly been revolutionized by mobile banking with bank customers able to  access of their money from the bank accounts twenty four hours a day, seven days a week.

Advantages and disadvantages of debit cards

Advantages of debit cards

• Use only what the cardholder has as it debits the bank current or savings account. The cardholder does not go into debt since they can only use as much as they have in the account.
• A debit card can be used in the same outlets as a credit card and acceptability is higher than for cheques. Getting debit cards is faster than credit cards and for those with bad credit ratings are not affected by getting debit cards.
• One may use the cards at numerous ATMs that have the logo of the association branding their cards in many countries.
• Goods and services can be purchased online. When goods and services are not received as per the order given, the cardholder can get a refund or cash back for the merchant.
• With a debit card, the cardholder does not have to physically visit their bank to get cash but can use the card at a merchant outlet
• When debit cards are used, the merchant gets refunded fast by their bank accounts being credited. They do not have to keep cash in their tills and so can save on security costs and bulk cash banking costing.
• It is easier for the merchants to balance their accounts since they are using reports from the Point of sale machines.
• The merchant does not have to struggle to get change, especially in small denominations when a card is used. When cash is used, the merchant must have the change in small denominations to give customers. It also takes more time to count the coins to balance the days work.

Disadvantages of debit cards

• The cards debit the accounts immediately as the transaction happens. This gives no grace period like in a cheque transaction or credit cards.
• It is harder for the customers to make their reconciliations on transactions since receipts’ are not kept by the cardholder for long. The statements for many current or savings accounts are given to customers quarterly or twice a year. For a customer to receive the e statements they have to pay a fess for the service.
• If the account has no money, the card cannot be used unlike for a credit card. If the card is allowed to overdraw the account, the charges are hefty
• when fraud is commited, the insurance in the card is less than the amounts on the credit cards

It is important for all holders of debit cards to consider both the advantages and disadvanages of debit cards.

M-pesa bulk mobile money transfer works by listing the phone numbers and amounts of the beneficiaries in one SMS and sending the message to the listed recipients at the same time. The application to perform this task is given to the sender by the bank or financial institution.

M-pesa bulk mobile money transfer

the Advantages of M-pesa bulk money transfer as listed below are not exhaustive.

Salary payments through M-pesa bulk mobile money transfer

M-pesa bulk mobile money transfer is designed mainly for corporate entities. The money transfer may be used to pay salaries to employees who do not even have bank accounts. This makes this banking channel very convenient both for the corporate and the employee. The mode of transfer is simple and fast.

Financial inclusion using M-pesa bulk mobile money transfer

Reaching the unbanked was a target for money transfer services and M-pesa bulk mobile mobile transfer or payment service is achieving this. M-pesa has a very wide reach in the Kenya and neighbouring countries. In Kenya, M-pesa agents are found in all parts of the country. The money is transferred to a cell phone and not an account and there are more people with mobile phones compared to those with bank accounts. The money may remain in the M-pesa account for use when it is required or it may be cashed when cash is required.

Convenience and costs of M-pesa bulk mobile money transfer

Since the funds are sent to the M-pesa bulk mobile transfer or payment service by the click of a button, the speed of transfer is very fast. When the networks are down, the transfer may take a while to reach the recipients.

Unlike banks that close their doors at some timeat the end of the day, M-pesa bulk mobile transfer service is available to the users twenty four hours a day, every day. The recipient can look for an all night M-pesa agent or an ATM that accepts M-pesa transactions, to cash the funds if need be.

Since cash is sent to bulk recipients, the audit of the funds sent becomes easier and the recipients do not have to carry cash in their pockets but can use M-pesa as an account and save their monies. When a cell phone is stolen, funds do not get stolen since the actual cash is not on the phone and a PIN is required to transfer funds. This makes this solution safer than cash payments.

Operating costs for M-pesa bulk mobile money transfer services are competitive. Banks charge less for M-pesa bulk mobile transfers compared to the costs of cheques and cash transfers.

CFC Stanbic bank is the a bank that has this M-pesa bulk mobile money transfer.