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Adapting online banking in Kenya

BY · April 16, 2015 12:04 pm

Online banking or e-banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, like a retail bank, virtual bank, credit union or building society.

To access an online banking facility, a customer with Internet access would need to register with the institution for the service and set up some password for customer verification. Banking in Kenya especially for the middle class and below consumers has been hectic for a while now.

Queuing for hours for only a simply service like paying school fees or checking an account balance can be hectic, many people are unaware that there is a better option out there which is online banking. With a simple phone you can deposit, withdraw and even request a bank statement.

Online banks save a ton of money on personnel and maintenance costs because they have no physical branches. According to the Central Bank of Kenya’s annual bank supervision report in 2013, Kenya has 44 banking institutions and 26 offer various online banking products such as online accounts, funds transfer, credit card application and payments, and mobile money transfer.

Kenyan banks are slowly venturing into the online banking services but a few things slow the process down, with common internet challenges like fraud. We tend to forget that the more technology improves criminals also improve their skills. What needs to be done is to inform customers of such issues before-hand.

Lack of public awareness on phishing scams and malware attacks have been identified as major threats. In most cases, banks protect their online banking platforms with SSL certificates and then require end users to authenticate their IDs before each transaction but end users do not always contact the bank even when their browsers report untrusted certificates, which indicates phishing or breach.

Consumers should be given these simple ways on how to avoid fraud;

  • Do not install a program on your computer that records what you type. This is to prevent the program to secretly record your password details.
  • Do not open any email attachments you’re not expecting any.
  • Avoid downloading files from websites you don’t trust.
  • Keep your password secret.

With all this we can all proudly bank online from the comfort of home or anywhere we choose with our phones thus avoiding the long queues. Additionally, online banking services are offered 24/7 save fro one or two days when banks halt these services to do maintenance and improve services. It is a fast and efficient process that will make your life easier than it was previously.

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