Electronic Banking is more commonly referred to as internet banking or simply netbanking.

It is an
electronic payment system supported by a website that offers an array of products and services of any
bank that is possible to work electronically, like payments, transfers, deposits and more (Hoehle,
Scornavacca and Huff, 2012).

E-Banking services are available on all 7 days all round the hours of the day. It is a convenient way to
access account information and allied services related to the account from the comfort of your home
and a stable internet connection (Daniel, 1999). These services are made to be secure against cyber
attacks too. These netbanking portals can only be availed through User IDs and passwords, by
generating OTPs and captchas while logging in. Internet banking has reduced the stress on banking
institutions as well as its customers. A customer may not need to go to the bank each time they want a
different query addressed; in fact, the accessibility of chatbots and support services on the site make
understanding and executing processes on the site easier for both the user and the provider. A customer
can access their account information, avail loans and keep check on the balance, make payments and
transfer funds with security and ease.

Banks in Zimbabwe have since introduced E-banking for more than a decade now. This was a
major development in the industry making banking for convenient. Just like many other services,
the use of e-banking has its pros and cons in Zimbabwe. First I will look on the advantages of
internet banking in Zimbabwe compared to the traditional banking.
Convenience
Convenience is a dimension of e-banking that enables customers to access e-banking services at
anytime and anywhere (Kumbhar, 2011). E-banking has brought banking convenience in
Zimbabwe. One does not need to go to the bank to do transactions. From the comfort of one’s
home or office transactions can be done. This saves time and money one may need to get to the
banking hall. We have civil servants in the rural area who have to travel long distances to towns
to access banks during pay days and they have been saved by e-banking. It will be now a choice
to use e-banking or traditional banking.

Accessibility
Accessibility defines as the ability of users to access information and services from the web
which depends on many factors. These include the content format; the user's hardware, software
and settings; internet connections; the environmental conditions and the user's abilities and
disabilities (Godwin-Jones 2001; Hackett and Parmanto, 2009). The term "web accessibility"
generally relates to the implementation of website content in such a way as to maximize the
ability of users with disabilities to access it. For example, providing a text equivalent for image

Wryly
content of a web page, allows users with some visual disabilities access to the information via a
screen reader (Musiime & Ramadhan, 2011). The techniques and approaches that create more
accessible web pages for people with disabilities also address many other access issues such as
download speed and discoverability (Godwin-Jones 2001; Hackett et al, 2004; Hackett and
Parmanto, 2009).

Service for 24/7

E-banking customers are able to check their account balances, pay bills, apply for loan, trade
securities and conduct other financial transactions. (Kumbhar, 2011). E-banking gives us access
to banking 24 hours a day and 7 days a week. This has an advantage because one can have access
to money in times of emergence. It is not only access to funds in one’s account but one can even
get a loan approved and deposited online in times of need. Unlike the traditional banking that has
operating hours and also bank workers do have holidays and weekends, with e-banking the
service is smooth. If you lost your bank cards, you can block them in time before your money is
stolen unlike the time needed for one to get to a banking hall.

Instantly Transfer Funds

Transferring funds between accounts has never been easier. RTGS used to take ages. At times customers
would use cheques and they have a lot of administration that makes them take time to clear and cash out
(Mbiti and Weil, 2011). Whether you need to make a domestic or international transfer, e-banking
provides you with a variety of options, including IMPS, NEFT, RTGS, and more to make a transfer. With
e-banking the transfer of funds is not instant and safe too for one can confirm instantly that the transaction
went through. Using of e-banking has made is easy to transfer money from bank to mobile account which
helps in times of emergency and you want to send money to people in the rural areas who do not have
bank accounts.

Pay All Your Utility Bills

In Zimbabwe it is now possible to pay bills online such as water and electricity. E-banking
makes it easy to handle all your monthly expenses, both recurring and non-recurring. From water
and electricity bills to mobile and more, you can conveniently pay all your expenses through e-
banking. Some schools even have their fees paid via e-banking platforms and update portals.
This is convenient for parents for it will be easy to keep record of payments and to know if they
are owing to the school. It has also been a plus to business for they can do dial a delivery
business. People in Zimbabwe can now order meals from the likes of Chicken Inn and Pizza Inn
from home or office and this has been made easy by the use of e-banking.
Safe way to move money

Wryly
Unlike in traditional banking were people are subject to moving around with large sums of cash,
with the use of e-banking in Zimbabwe we can now just send the money instantly. This reduces
the risk of people being robbed while moving money from point A to point A.

Pay on Time using Auto-Payments

At times we have challenge with time management. This would cause delayed payments of even
forgotten payments to be done. Penalties or interest would be debited to the owing account. With
this e-banking feature, you'll never miss a due date again. Just set up automatic payments for
recurring expenses, and the exact amount will be debited from your account as soon as the bill is
generated. Plus, you'll receive instant notifications to keep you informed.

Higher Interest Rates

Just like any other business, the burden of operating expenses will end up being paid by the
customer. Internet banking reduces human resource thereby reducing operations over heads.
Since banks save their resources by offering online banking services, they often tend to transfer
these rewards to customers by way of higher interest rates. The logic is simple: the lesser the
physical exertions to the bank, the greater the rewards they can offer. A bank with lesser
expenses is also likely to have lower accounts and transaction charges.

Keep Your Account Balance in Check

Checking balance is not a hustle when it comes to the use of e-banking in Zimbabwe. Also some
mobile applications will give you a statement after every transactions making you keep track of
your account balance. Wherever you go, you can keep a close watch on your account balance
with the convenience of e-banking. Additionally, you can easily download historical statements,
empowering you with greater financial control.

There is also the negative side of e-banking. These disadvantages include the risk of being
hacked and lose money, when you need to make deposits you will have to visit the bank.

Internet and network service not reliable.

Internet service is expensive in Zimbabwe. Most citizen cannot afford data to do e-banking using
mobile applications to do transactions when yet they are more efficient and easy to use rather

Wryly
than SSD codes options. In some parts of the country especially remote areas, network service is
poor and people can go for long periods without access. This will defeat the whole purpose of
having access to banking 24/7.
Less Flexibility With Transactions

System is designed such that it is specific and responds to specific commands. If one wanted a
tailor made service it won’t be possible to get online. In-person contact with a banking staffer
isn't only about getting to know you and your finances. For some transactions and problems, it's
invaluable to head to a bank branch. Take, for example, depositing funds, the most basic of
banking transactions. Depositing a cheque is possible with a direct bank by using its banking app
to capture both the front and back of the check. However, depositing cash is downright
cumbersome at many online banks. So it's worth checking the bank’s policy if this is something
you plan to do frequently. International transactions may also be more difficult, or even
impossible, with some direct banks.

No Personal Relationships

If you open an account online and only do online transactions, you will not know staff at the
bank and you cannot develop a relationship with them. A traditional bank provides the
opportunity to get to know the staff at your local branch. That can be an advantage if and when
you need additional financial services, such as a loan, or when you have to make changes to your
banking arrangements. A bank manager usually has some discretion in changing the terms of
your account if your personal circumstances change, or in reversing a mandatory fee or service
charge.

Phishing Attacks

Scammers may send fake emails or messages that appear to be from your bank, tricking you into
providing your login details. Some have been scammed and lost money due to ignorance. In
Zimbabwe we have a large number of people who cannot tell legit from illegitimate deals online.
Some end app giving their login details to wrong platforms that end up emptying accounts.

Physical Theft

If your phone is lost or stolen, someone could gain access to your banking app if it isn’t properly
secured. There has been stories of stolen phones and then robbers going through the contact list
asking for money pretending to be the owner of the phone.

Wryly
Lack of knowledge
Some may send money to wrong accounts because of lack of knowledge. Several times you find
people paying money to wrong biller codes. Zesa has the prepaid option and the one that is not
and one needs to which account they must send money.

Reduced employment
Since banks have started using e-banking, they have reduced number of branches and man
power. A lot of people have lost jobs over the time. Given the employment rate in Zimbabwe,
this is bad. Software applications have replaced people over the years.

Conclusion
E-banking has made banking more easy and cheaper at times. Banking is now convenient such
that sending money and receiving money is only a fingertip away. If you run out of ZESA at mid
night, no worries for you can just purchase a token online. No need to worry during holidays for
you can just transact using e-banking. It is also safe to just carry your mobile cellphone around
rather than to carry a bag full of money. In times of emergence one can apply loans that get
approved instantly. There is also instant transactions from account to account. Reduced
transaction cost and also operating expenses to banks. Banks no longer use stationary like they
used to.
However to a lesser extent, there are a few complications that came with e-banking. Systems
replaced people and people lost jobs. Many banks reduced branches thereby also affecting
owners of rented buildings. Those who also provided services like cleaning services and
employee lunch meals lost customers. Some accounts get hacked and customers lose money.
Network is not reliable in Zimbabwe. Some areas do not get smooth service. Some even lack the
proper knowledge to safely use e-banking systems.

Wryly
Banking Made Easy: Discover the 10 Advantages of E-Banking: Available at
https://fi.money/guides/banking/banking-made-easy-discover-the-10-advantages-of-e-banking
[ Accessed 23 July2024]

What is E-banking: Available at

https://bekonomike.com/en/%C3%87ka-eshte-E-Banking-Inidividet [ Accessed 23 July 2024]

Internet Banks: Pros and Cons: Available at

https://www.investopedia.com/articles/pf/11/benefits-and-drawbacks-of-internet-banks.asp
[Accessed at 23 July 2024]

Wryly