What is Mobile Banking?
Mobile is a wireless device that one can carry with himself anywhere around the globe and can be used by him at any given point of time.
Banking is a term that relates to transfer of funds, checking of bank balances, executing payment and undergoing withdrawal transactions.
When both the expressions are put together, it states that when any banking services are performed through a tablet or a smartphone, then it is known as Mobile Banking.
In simple words :
When the banks or any other fiscal units give the authority to the users of transacting funds with the help of remote devices, it is called mobile banking or digital banking.
As per the statistical data, nearly 390.9 million people are mobile internet users and among them, 43.7 million users are using mobile banking services. Most of the users of digital banking services fall within the age group of 27 to 37. However, the Mobile Banking Industry is growing rapidly with the advancement of technology and is capturing the market at a considerable rate.
It is a blessing as well as a curse to mobile banking users. Following are some pros and cons of the mobile banking system:
- User-friendly and Eco-friendly– It is simple for the users to make transactions through the internet on mobile phones by pressing a few buttons. The users do not have to worry anymore about the change of cash because the amount of money as typed by the user would exactly be debited or credited by the banking application.
- The statements and other important banking information can be easily delivered on emails making mobile banking services cost and environment effective.
- 24*7 Available– The most striking feature of mobile banking is that it is available 24 hours, on all 7 days of the week including weekends and national holidays. Users can conveniently locate ATM’s, monitor balances, exchange money and disburse payments for online shopping via mobile banking applications at any time around the clock from anywhere.
- Earn Reward Points– Various digital banking applications offers users to earn brownie points and loyalty rewards if they log in, register and make payments using their portal or their particular app. This helps to enhance customer satisfaction and create a new customer base.
- Getting daily updates: Mobile banking applications send updates on a day-to-day basis regarding the bank balances and also such messages that create awareness among users about the cyber theft crime happening around.
- Security and Privacy: It is always a matter of concern for the users whether monetary transactions executed and private information provided by them through mobile phones are safe or not. There are huge chances of hacking and deception by unknown sources.
- It must be successfully authenticated by OTP or at times, it is even better to get the banking services completed under the administration of a particular bank.
- Internet and Transaction Error: As seen frequently, due to connectivity issues, a transaction that is activated stops inappropriately, showing errors and causing inconvenience to the users. It is time-consuming and annoying when the network does not respond timely.
- Not compatible with all mobile devices: Banking applications are not supported by a few mobile devices that do not have an advanced version of the software. There are also a few banks also that do not allow mobile banking at all to their customers.
- High costs involved: Mobile banking is one of the components of smartphone and tablet, thus, it cannot be used by customers on ordinary phones. Significant costs have to be incurred for data accessibility and getting a compatible device that supports mobile banking network.
Research says that mobile banking is the need of the new era. From rural to urban areas, cell phones have made their place everywhere. It has lead to a cashless and paperless society. As per consumer demand, the market reacts quickly. Very soon there will be no physical existence of banks and would operate digitally in totality. One must take adequate safety steps before stepping in digital banking. It majorly depends on the users how effectively they use such digital services.
Good or Bad – Mobile Banking?
Mobile banking is gaining popularity gradually and has made