Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer. Monitoring account balance, transferring funds betwen accounts, bill payment and locating an ATM are the task done by mobile banking.
Mobile text and alert is the simplest, allowing the user to transfer funds or access account information text message. Texting terminology varies from bank to bank, but the overall function is generally same For example, texting “Bal” will obtain the account balance while “Tra” will allow inter-account transfers. Users need to first register and verify their phone numbers with their bank, but once that is completed, they can also set up alerts to let them know about negative balances or deposit confirmations. Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions a which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. Mobile banking is dependent on the availability of an internet or data connection to the mobile device.
Mobile Banking Functions:
Transactions through mobile banking depend on the features of the mobile banking app provided and typically includes:
Obtaining account balances and lists of latest transactions,
Electronic bill payments
Remote check deposits
Funds transfers between a customer’s or another’s accounts
Advantage of Mobile Banking:
1. Always on:
Mobile phone can be always or is always portable due to inherent design, alias users to interact in activities such as travel or meeting people, while transactions via mobile devices are equipped with Internet.
Not only is mobile phone in all places, Global Positioning System (GPS) may be created to recognize phone and tries to personalize based on existing services. Identifying the location of Internet users, provides a special advantage for mobile commerce over wired e-commerce. Using this technology, the mobile commerce providers will enable to receive and send information to a particular place.
Other people are not limited by time or space, access from electronic activities. For example, people who are stuck in traffic or waiting in the queue will be enable to buy their favorite Internet-based activities or managing their daily transactions through mobile comment applications.
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Mobile phone is much higher influence than personal computers. Therefore mobile commerce producers to design more creative and more customized lifestyle tool. For example, using demographic data collected by wireless service providers, and information on current location of the mobile users can do more targeted advertising. Advertising messages can be customized based on the information provided through consultation with the user’s initial or previous users’ shopping habits.
5. Identify Ability:
Mobile phone provides to support the secure mobile phone transactions where personal computers are almost unknown. One person always uses mobile devices and it is ideal for Personal based target marketing through the technology of Global Positioning System (GPS), service providers can recognize a user carefully. Personalize opportunity to deliver messages to different parts of space and time through sound and look.
6. Mobile banking reduces the cost of handling transactions by reducing the need for customers visit a bank branch for non-cash withdrawal and deposit transactions. It is available for 24 hours and easy and convenient mode for many Mobile users in the rural. Mobile Banking is cost-effective, and Banks offer this service at less cost to the customers.
Disadvantages of Mobile Banking:
- Mobile Banking is not available on all mobile phone. Sometimes, it requires you to install apps on your phone to use the Mobile Banking feature which is available on the high-end smartphone. If the customer does not have a smartphone than the use of Mobile Banking becomes limited.
- A transaction like transfer of funds is only available on high-end phones.
- Regular use of Mobile Banking may lead to extra charges levied by the bank for providing the service.
- Mobile banking users are at risk of getting fake SMS messages and scams.
- The loss of a mobile customer device often means that criminals can gain access to your mobile banking PIN and other sensitive information.