Mobile Banking: Features and Benefits
Posted on May 24th, 2019
With the digital revolution, banking has completely transformed from being branch based to transitioning online. After the introduction of internet banking, several transactions can now be done easily online without any need to visit the bank branch.
But with the explosion of smartphones in the country and the development of mobile applications, banking has evolved to mobile banking. This has brought a whole range of banking transactions at the fingertips of smartphone users.
Mobile banking can be defined as banking using a smartphone application. Most banks have fully functional and optimized mobile banking applications that provide a whole range of services to their customers.
Some of the common facilities and services available in Indian mobile banking are:
- Account summary
- Account statement
- Fund transfers using NEFT, RTGS, IMPS, UPI
- Bill payments
- Opening or liquidating fixed and recurring deposits
- Making investments in products offered by the banks
- Requesting cheque books
- Cancelling or hotlisting debit or credit cards
Features of mobile banking:
- Mobile banking provides services and facilities provided in the bank branch. It is a condensed version of internet banking.
- Transactions are done using the official mobile app offered by the bank. In android smartphones, these apps are available on the Google Play Store and on iPhones, they are available on the App Store.
- Accessing your account requires a login and authentication which makes transactions secure.
- This app can be accessed 24x7 providing convenience to the users. Having a bank at their fingertips is changing the way Indians bank.
- Mobile banking also includes SMS banking where alerts about deposits and debits from the account are sent on the registered mobile number of the customer.
- Another type of mobile banking is that over USSD where a number has to be dialed to find out the account balance. However, with the proliferation of smartphone applications, USSD based banking is slowly seeing a decline.
Benefits of mobile banking:
- Mobile banking is extremely convenient. Internet banking presupposes the availability of a laptop or personal computing system along with a stable working internet connection. Mobile banking has made banking completely mobile, allowing customers to use their apps from remote locations.
- Indian mobile banking is secure. This app requires a login to use the services. In addition, banks often prompt users to change their login every few months. Some banks require an OTP based authentication when transactions not usual to the account are done, such as fund transfers or online payments.
- Using a mobile banking app is extremely simple. These apps have simple layouts with user friendly interfaces. Some banks have guides and tutorial videos on how to use these apps. That provides additional support to their customers.
- When you use any of the services on mobile banking, they are instantly reflected in the bank account. For example, if a fixed deposit is opened, then it is immediately booked and reflected in the accounts. Fund transfers operate just like internet banking i.e NEFT transactions are settled in batches and RTGS happens instantly. Even IMPS and UPI are instantly debited from the mobile banking account.f