Home Banking


DEFINITION of 'Home Banking'

The practice of conducting banking transactions from home rather than at branch locations. Home banking generally refers to either banking over the telephone or on the internet. The first experiments with internet banking started in the early 1980s, but it did not become popular until the mid 1990s when home internet access was widespread. Today, a variety of internet banks exist which maintain few, if any, physical branches.

BREAKING DOWN 'Home Banking'

The increasing popularity of home banking has fundamentally changed the character of the banking industry. Many people are able to arrange their affairs so that they seldom have need of a physical branch. Online-only banks have profited from this shift in the industry. The absence of brick and mortar locations allows online banks to offer favorable interest rates, lower fees and many other incentives for those willing to bank online.

  1. Off-Premise Banking

    Any bank location other than its main location that provides ...
  2. Interstate Banking

    The expansion of banking across state lines. Interstate banking ...
  3. Online Banking

    The performance of banking activities via the Internet. Online ...
  4. Universal Banking

    A banking system in which banks provide a wide variety of financial ...
  5. Retail Banking

    Typical mass-market banking in which individual customers use ...
  6. Credit Union

    Member-owned financial co-operative. These institutions are created ...
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