Mobile Banking

Introduction

The advent of innovative technologies and the incessant growth of smartphone users has given rise to new opportunities in the banking sector. The traditional banking, initially a popular system, slowly withered from peoples’ sight and got replaced by mobile banking.

This new approach enables customers to make their financial transactions virtually via the respective banking application. Unlike the traditional banking where an account opening itself used to take days to go live, with mobile banking, the same task happens in minutes.

Define Mobile Banking

As the name suggests, mobile banking is the process of carrying out financial transactions with the help of smart devices like mobile phones, tabs, and other related sources.

The customer’s account is connected to a banking application, where they can view their bank details, make transactions, send money to others, invest in various asset classes, and much more. With just one tap, the customer gets to explore and access various banking and financial services all available at one place.

How does mobile banking work?

The mobile banking is coupled with the state-of-art technology and affordable internet, making the process simple and convenient to the users. In this facility, there’s no need for third-party guidance to walk through the process because everything is designed in such a way that even a layman can operate it easily.

The best part of mobile banking is that you can use it anywhere irrespective of the location and time. This facility allows users to perform the same traditional banking activities digitally with the aid of smart devices and banking apps. To start using the mobile banking, you first need to download the respective bank app and set up your account.

You can ask the bank to provide net banking login details to get started with the mobile banking process. Once you enter the net banking credentials – customer ID and password, your account will be ready to use.

Benefits of mobile banking

• Tracks day-to-day transactions − We all get so busy with our everyday lives that we end up forgetting monitoring our financial transactions. With mobile banking in place, one can have 24/7 access to their account and monetary activities regularly.

• Accessibility and Convenience − Customers can access their accounts whenever they want and from wherever they want at their convenience. With mobile banking, the way one handle funds have become pretty simple and straightforward. It not only saves travel time to the banking institution but also eliminates prolonged paperwork.

• Highly secured − Whether it’s sending cash to someone or paying bills, it’s not easy to move around or carry tons of cash everywhere. Thanks to mobile banking, it made everything possible with a single tap. There’s high security involved while making transactions like one-time password, SMS alerts, login credentials, etc.

Significance of mobile banking

As the name suggests, mobile banking runs its financial dealings via mobile phones. The transactions are carried out directly from the banking app. One can use mobile banking for diverse purposes like investing in financial products, learning about available services, news, conducting transactions, making payments, and much more.

Today, people can receive or send money to anyone in no time without worrying about any security concerns. With mobile banking, customers can also put a request from the app for call back or in-person banking services. You can give standing orders asking the bank to pay bills on your behalf every month, or convert a certain amount into fixed deposit, and other banking services.

Pros of Mobile Banking

• Easy investments − Keeping the funds idle in the bank wouldn’t fetch you any gains. It starts with investing in multiple financial products, which mobile banking lets you do at ease, enabling you to track your finances and returns in real-time.

• One-stop solution − Whether its payments or receiving funds or giving standing orders to the bank, there’s nothing mobile banking can’t do. This solution will be highly helpful for tech-savvy customers, as everything can be managed from the banking app itself.

• Request for support services − In traditional banking, customer has to visit the branch to put a written request for any service. But in mobile banking, one can simply tap on the feature to activate the service like request for a loan, account creation, investing in financial products on your instructions, EMIs, etc.

• Updates and Alerts − Banks also provide updated financial news to the customers, helping them know what’s going on in this market and how it impacts the banking system. For instance, inflation can impact the interest rates drastically. Banks keep its customers abreast of such things in the form of news content or SMS or email alerts.

Cons of Mobile Banking

• Internet connectivity required − Not every location is well-equipped with internet connections, particularly the underbanked or unbanked regions and rural areas. So, mobile banking may not be fully utilized unless there’s proper network or internet source in the respective area.

• High possibility of fraud − Hacking has become very common in the digital space. Using banking apps via third party portals or clicking wrong links can take you to unknown websites. These heedless activities cam put your bank account in jeopardy.

• Should have technical know-how − Using mobile banking requires a bit of technical knowledge along with basic understanding of financial jargon. Also, one should be able to equip the upgraded versions to enjoy the banking services at full pace.

Examples of mobile banking

Some of the common examples of mobile banking includes bank to bank transfers, sending funds to someone via online, paying to business clients by using NEFT or RTGS or IMPS, etc.

Conclusion

Mobile banking is definitely a blessing for those who know how to use it rightly. This facility acts as a one-stop solution for all your banking needs. With mobile banking in place, you can make payments and receive funds from anyone, give standing instructions, request for other banking services, track day-to-day transactions, make investments in financial products, etc. Although there are ebbs and flows in this banking model, customers should follow all rules and guidelines before processing any transaction. This model creates financial discipline, enabling you to access your accounts from anywhere and keep track of your finances daily.

FAQ

Q1)Is it possible to generate new debit card PIN through the mobile banking app?

Ans)Yes, one can block their existing PIN and create a new one via their mobile banking app.