Personal Finance and Home Banking Management

•The newest technologies are direct deposit of payroll, on-line bill payment and telephone transfers

•The technology for paying bills, whether by computer or telephone, is infinitely more sophisticated than anything on the market a few years ago

•In 1980s were the days of “stone age” technology because of technology choices for accessing services were limited

•For home banking, greater demands on consumers and expanding need for information, it’s services are often categorized as basic, intermediate and advanced

Basic services

•These are related to personal finance

•The evolution of ATM machines from live tellers and now to home banking

•The ATM network has with banks and their associations being the routers and the ATM machines being the heterogeneous computers on the network.

•This interoperable network of ATMs has created an interface between customer and bank that changed the competitive dynamics of the industry. See in next figure

•Increased ATM usage and decrease in teller transactions

•The future of home banking lies with PC’s

Intermediate Services

•The problem with home banking in 1980 is, it is expensive service that requires a PC, a modem and special software

•As the equipment becomes less expensive and as bank offers broader services, home banking develop into a comprehensive package that could even include as insurance entertainment

•Consider the computerized on-line bill-payment system

•It never forgets to record a payment and keeps track of user account number, name, amount and the date and we used to instruct with payment instructions. See in Fig;

 Advanced Services

•The goal of advanced series is to offer their on-line customers a complete portfolio of life, home, and auto insurance along with mutual funds, pension plans, home financing, and other financial products

•The Figure explains the range of services that may well be offered by banks in future

•The services range from on-line shopping to real-time financial information from anywhere in the world

•In short, home banking allows consumers to avoid long lines and gives flexibility