Mobile banking is one of the most exciting developments in financial services today. It’s changing the way we bank, shop, pay bills, and manage our finances.
This change and shift from brick-and-mortar banking toward digital banking is happening quite fast.
Using a terminal desktop or laptop is another thing.
But the spurt of mobile banking technology is well appreciated by almost everyone.
Of course, there will always be a downside to anything new. Likewise, mobile banking has its own flaws.
Mobile banking is an increasingly popular option for people looking to save money on fees and avoid long lines at traditional banks. But how safe is mobile banking? And what other options exist?
Why does Mobile Banking matter?
Mobile banking has been growing rapidly since its introduction in the early 2000s. In fact, according to the Federal Reserve Bank of New York, more than half of U.S. adults now use some form of mobile banking.
The figures are the same as in any other developing country. India is one such country that has emerged as a technology hub. Mobile banking user penetration is going up at a much faster pace.
SCBs and other banks are looking for ways and means to simplify access to accounts by customers, and mobile banking is one such area in which banks are investing huge amounts of money in research and development.
In short, with mobile banking, your account is in your palm. You can access it anytime and from anywhere.
The services include checking account balances, paying bills, transferring funds, making deposits, etc.
Things That You Can Do With Mobile Banking
| 1 | Account Balance Enquiries. |
| 2 | Fund transfer to anywhere on the globe. |
| 3 | Utility bill payment. |
| 4 | Mobile and other prepaid and postpaid service payments |
| 5 | Make fixed deposits and recurring deposits. |
| 6 | Investment in shares and stocks. |
| 7 | Avail of personal loans. |
| 8 | Request a Chequebook, ATM card, and credit card. |
| 9 | Access to Mutual Funds, health insurance, and Life insurance |
| 10 | Maintenance facilities such as ATM cards, credit cards, and Internet banking. You may even set the transaction limit on this platform. |
How does Mobile Banking work?
Mobile banking allows customers to access their accounts using smartphones, tablets, or other devices.
The user has to create a user ID and password. This is done during the registration process. All transactions are usually in OTP authentication mode. Additional security features, such as biometric access and facial recognition AI, are there too.
Mobile banking allows checking account balances, transferring money between accounts, making payments, and even depositing checks.
Where is Mobile Banking Heading?
In the past few years, mobile banking has become more popular than ever before. According to the Pew Research Center, nearly half (48%) of U.S. adults now use some form of mobile banking.
That number is expected to continue growing as smartphone adoption continues to rise.
In India, generations X and Y are well-versed in mobile banking services. Metropolitan cities and known parts of the country already have a huge number of users. Rural areas are somewhat lagging behind due to network connectivity.
Why Is Mobile Banking So Important?
As smartphones become an increasingly common part of daily life, consumers expect to be able to access their accounts wherever they go.
This means that banks need to make sure that their apps work well on any device, whether it’s a desktop computer, tablet, or smartphone.
With the onset of Neo-Banking, brick-and-mortar banking would be obsolete. Mobile banking, Internet banking, and other online payment systems will be the only ways you bank.
In the near future, you may even not have to visit your bank. Either you will be served at your place or your services will be served online. As such, it makes sense why the bank wants you to use their mobile app.
The Inherent Risk of Mobile Banking.
In the early days of mobile technology, people used phones as voice devices for sharing information and communication only. They were not designed to handle data transactions.
However, with the advent of smartphones, users now carry powerful minicomputers in their pockets.
This powerful pocket computer can do literally any kind of financial transaction. It is also expected that the AI system will further advance. We only have to wait and see.
Speaking about how safe it is, Well, it all depends on how you use it. Online fraud is an integral part of online banking. Fraudsters will always try to steal your personal details, hack your account, steal your identity, and more.
But if you know how to stay ahead of these scammers, then you are completely safe. And it’s quite simple to protect yourself too.
Just try to understand some of the basics of banking-related fraud and account maintenance.
Otherwise, internet banking, mobile banking, and other online payment systems are good ways to bank.
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