Mobile banking is a part of internet banking that is conducted through mobile phones. This system has eased the lives of people, saving them time, money and extra effort. All they need is a smartphone and a stable internet connection. You have the entire bank in your control through a single mobile application.
This system gained popularity during the peak of COVID-19 when it was impossible to visit public places. During that phase of the pandemic, everything was going digital which made the use of mobile banking services inevitable. Prior to the introduction of this, SMS banking was prevalent in most countries. Even at present, several banks offer both SMS and mobile banking to their customers.
Importance of Mobile Banking
This digital system is now used by all of us and has a number of benefits. In this section, we will discuss the reasons that add to the importance of mobile banking. Let us get started.
1. 24 x 7 banking services
This is one of the biggest benefits of mobile banking. As a bank customer, you may have an urgent need for transferring or withdrawing money. This is where digital services like mobile banking play a huge role. There is no need to visit the bank branch, wait in long queues or delay an urgent transaction. You can do that instantly through your mobile phone. You can even do bill payments anytime.
2. Instant Transactions
Instant transactions are one of the biggest plus points of this type of banking. If you rely on visiting the bank branch, you will be unable to conduct urgent transactions outside bank hours. You can instantly transfer funds at any time of the day regardless of day and night or bank holidays.
3. Availability of all banking services
Through mobile banking, you can avail yourself of almost every banking service. You do not need to visit the bank branch. For instance, you can transfer money, make payments, create an FD in seconds, pay bills and get your bank statements through this service. These features are so easily available that most of us can use them without help.
4. Breaks the linguistic barrier
Mobile apps of many financial institutions are available in multiple languages. This makes it easier for most people to perform mobile banking on their own. This reduces any confusion that you would otherwise face. These multilingual banking apps make the country more banking centric as the rural population is also actively using them.
5. Improved security in Mobile Banking Apps
These applications tighten security through features like multiple pins, face id, fingerprint lock and multi-factor authentication. Through these security features, your bank accounts become more secure against thefts. In case your phone gets lost or stolen, banks offer the facility to disable the application remotely. Some banks even allow you to share location to detect the location of fraud.
6. Better control of finances
Through mobile banking, you can always keep a check on your finance. You can monitor your expenditure and prevent overspending. This can be a part of your budget planning. Over time, you will become better at financial management and save more money.
7. Better Support
Banks offer customer care services that help confused customers in using the app. Customers can call, chat or email their queries to the support team. You can report fraudulent transactions and get your debit card blocked during suspicious transactions.
How is Mobile Banking Helping Financial Institutions?
Mobile banking is a secure and remote method of banking that is not only helping customers but also financial institutions. Let us discuss the ways in which mobile banking is helping out financial institutions.
- Makes the system secure: The banking system becomes more securewith biometric security features such as face id, fingerprint lock and voice recognition. This prevents illegal access to the system so that only authorized bank holders can access their accounts.
- Less burden on employees: As more operations in the banking system are becoming digitalized, employees need to do less work. This in turn, enhances their efficiency and makes them more productive.
- Saving funds: With the inclusion of technologies like blockchain, ML and AI, banks are able to save money by investing lesser in resources. Features like AI-enabled chatbots reduce the requirement of customer care professionals.
Do’s and Don’ts
- Bank, RBI or any other such organisations never call, send emails or SMS’s asking for your personal or banking information. Do not be a victim of such frauds.
- Do not follow any URL from a message/sender that you are not sure about.
- Do not take help from strangers for using ATM card or handling cash at branch and do not allow them to watch you while transacting.
- Avoid accessing your internet banking account from a cyber cafe/shared computer. If you happen to do so, change your passwords from your own computer.
- Ensure that you updated correct mobile number with bank to get the transaction alert regularly.
- Do not give app access to unknown users.
- Always download the application from secured sources like Play Store and App Store.
- Downloading application from 3rd party or from unknown sources should be avoided.
- While accepting a collection request, care should be taken to ensure that correct recipient has been approved.
- Don’t forget to inform the bank about your new mobile number in case your mobile number is changed to ensure that you receive SMS notifications.
- Be cautious while accepting offers such as caller tunes dialer tunes or open/download emails or attachments from known or unknown sources.
- Don’t store sensitive information such as Credit Card details, Mobile Banking password, User ID etc. on your phone /computer.
- Change your PIN regularly.
- Be cautious while using Bluetooth in public places as someone may access your confidential data/information.
- Don’t click on links embedded in emails/social networking sites claiming to be from the bank.
