The Banking industry is one of the oldest in the world.  Banking originated about 4000 years ago in place such as Babylon, Mesopotamia and Egypt where grain and other valuable commodities  were stored and receipts give as proof of sale on purchase. 

The emergence of paper currency as a medium of exchange has revolutionaries the banking industry. By use of cheques became widespread and by mid- banks started using the telegraphs technology to “wire” money from one locations to another in a matter of seconds. Banking today has become more complex with different produces and services which stems from reliance on automation and technological change which have shaped it from a manual intensive industry into one highly automated and technology dependent.

Instense competition has forced banks to rethink the way they operated their business. They had to reinvent and improve their products and services to make them more beneficial and cost effective. Technology in the form of electronic banking has made it possible to find ultimate banking practices at lower costs. More and more people are using electronic banking products and service.

The Automated Teller Machines was one of the earliest electronic banking product, with Tillie-the-Teller, the first ATM, being introduced in the mid. It provided customers with the ability to withdraw or deposit funds, check account balance, transfer funds and check statement information. As is the case with any new technology, it took some time before customers became familiar with the AYM and came to accept it as an alternative way of doing their banking.
Electronic Fund Transfer is another Electronic Banking product that facilitates transfer of funds from any branch of a bank to any other branch of any bank in the shortest time.
Telephone Banking is only a relatively new electronic banking product. However, it is fast becoming one of the most popular products.  Customers can perform a number of transactions from the convenience of their own home or office, in fact from anywhere they have access to a phone. Customers can check balances and statement information, transfer funds from one accounts to another, pay certain bills and order statement of cheque books.
Internet Banking is an improvement over Personal Computer Banking. This is because internet Baking is done over a highly accessible public network. The bank can set up their system, much the same as PC Banking. It is accessible to anyone using the Internet, not just the bank’s customers.
One of the main reasons of electronic banking products being introduced was that the banks were losing their market share. Electronic banking has assisted the banks in retaining their customers and their market share by reducing costs in many areas, especially those associated with providing service to the customer and also to enhance their image. Most banks are trying to get customers to use electronic banking because it saves their money. If a customer comes into a branch to perform a routine task such as checking a balance or withdrawing funds, it passes on a cost to the bank. The cost of providing these routine transactions in a traditional branch environment is far greater than providing the same service by electronic means. 
Another benefit of electronic banking is that the ability to obtain accurate information quickly and easily has increased dramatically. It is beneficial for the banks as it increases their productivity and it also improves the delivery of quality service to the customer. The availability of the service can be extended to 24 hours a day. Customer can make informed decisions due to the accuracy of the information available to him.
However, the cost of implementing electronic banking products is also a deterrent for some banks. Though the costs are eventually recovered when the electronic banking product is up and running. The banks must still have the initial funds available to make it happen.
The Internet was developed in the late in California. It is basically a massive network that is publicly accessible from a computer via a modem over telephone line. It is accessible by anyone and because of the geographic area it encompasses, it presents banks with an existing network where opportunities for operating and marketing their products abound. The internet also provides banks with the ability to deliver products and services to consumers at a cost that is lover than any existing method of deliver. Internet banking is easy to use and is cost effective.
The emergence of paper currency as a medium of exchange has revolutionaries the banking industry. By use of cheques became widespread and by mid- banks started using the telegraphs technology to “wire” money from one locations to another in a matter of seconds. Banking today has become more complex with different produces and services which stems from reliance on automation and technological change which have shaped it from a manual intensive industry into one highly automated and technology dependent.

