With the fast-paced advancement of modern technology, today, there have been greater revolutions in every sector. One such advantageous development is the initiation of mobile banking in the industry.
What is Mobile Banking?
Mobile banking is a process wherein various banks and financial institutions offer its banking customers with virtual banking services over a mobile platform. Mobile banking can be carried out through mobile phones, tablets or particular software which may also be known as an app.
Although mobile banking is available 24×7, there are certain banks that have restrictions in terms of its transactions and the amount to be transacted. The term mobile banking might sound like a simple process, but it includes countless number of tasks under it; which includes display of the latest list of transactions, funds transfer, electronic bill payments and more. Furthermore, certain banks also offer services of downloading bank statement copies or mailing of hard copies of the bank statements at minimum or no fee.
While the above benefits are offered by the banks to its users, mobile banking always benefits the banks in various ways. The initiation of mobile banking has helped various banks reduce the cost of handling transactions by letting the customers to access the banking facilities virtually and without the need to visit the bank. However, mobile banking services are not applicable for transacti9ons that involve cash or documents, and therefore a customer should visit the appropriate ATM/bank branch for the preferred transactions/deposits.
Classification of Mobile Banking
Mobile banking is classified into two types; Push or Pull.
The ‘Push’ type of mobile banking is a process where a bank delivers information based on certain set of rules. Whereas, the ‘Pull’ type of mobile banking provides a customer with the requested banking information, like the information about the past few transactions.
Similarly, mobile banking is also classified on Enquiry and Transaction base. These classifications are based on the nature of the service.
An Enquiry based mobile classification is carried out when a person requests for a bank statement, or requests for a fund’s transfer to another account. A Transaction based mobile classification includes additional security across the platform through the mobile device to the data servers and banks.
How has mobile banking been advantageous to the industry?
Unlike before, mobile banking has been widely accepted all over the globe. Talking about the percentage of mobile banking in various countries, South Korea had about 27% of the mobile banking usage followed by 42% in China, 41% in Hong Kong, 38% in Singapore and 37% in India among other countries.
Here are some of the key advantages of mobile banking;
- Banking flexibility: Unlike internet banking, mobile banking does not require an internet connection. Mobile banking comes with one of the major advantages of completing a transaction anywhere, anytime. Mobile banking gives the ease of completing a transaction without having to visit the bank even at odd hours.
- Saves additional costs: Unlike other ways of banking, which usually deduct a minimum fee, mobile banking lets a person to access his account countless number of times, without deducting any fee. Since banking services include details about transaction history, fund transfer facilities, bill payment alerts, credit/debit card information and more, one can easily have access to all of these details without any fee deduction. Not just this, mobile banking also allows a person to transfer the funds instantly to another account of the same bank.
- Safe and secure banking: With innumerable security features being implemented, one can access all the mobile banking features safely. Also, there are a lot of banks that assure their users that downloading their mobile banking app does not require any bank details or won’t store the data on their server. Also, the mobile banking app comes with an advanced encryption technology which further makes it safe and secure for internet banking. One also received alerts and notifications after every log in or transaction made.
- Advantageous than internet banking: Mobile banking is much safer and easier when compared to internet banking, as it does not require access to internet. Mobile banking does not restrict itself to connectivity issues, as one can find mobile connectivity even in the remotest places of the world.
- User friendly features: Mobile banking comes with user friendly features and is much simpler to operate when compared to other forms of banking. All one needs to do is follow the given instructions. One can also view the saved records of the previous transactions.
- Beneficial to the banks: Mobile banking not only helps the users in terms of cutting down the costs, but also is beneficial to the banks. Mobile banking cuts down a bank’s cost of tele-banking and more.
- Acts as a guide: A mobile banking app ensures to serve as a guide which in turn helps both the users and the banks, thereby resulting in improved customer services by the bank. The app also allows banks to be in constant touch with their customers.
- Product marketing: Through mobile banking, banks can market and sell their products and services effortlessly. Mobile banking also allows the banks to target a specific set of customers to sell their services and products.
Some of the best international mobile banking apps are;
- BNP Paribas
- Capital One
Therefore, among the above benefits, mobile banking also offers various other innumerable smaller benefits such as, easier process of seeking loans, credit cards and much more. Apart from these benefits, mobile banking is also advantageous to service providers in terms of attracting more customers and ensure to the serve the existing ones in a better way.