If you have access to a stable internet connection and an internet-enabled smart device, you can easily take advantage of any digital banking service. Be it making balance enquiries, transferring money, or making payments online, today, people have round-the-clock access to banking solutions through Mobile Banking Apps, Net Banking, UPI, Mobile Wallets, etc.
Meaning of Mobile Banking
Mobile Banking is a term that has become increasingly popular over the course of the last decade. So, it is common for banks these days to offer their services – financial and accounting, to their customers over Smartphone. In its simplest form, Mobile Banking refers to a service offered by a bank to its customers through a Smartphone or tablet.
Mobile Banking is a part of Online Banking, and contrary to popular belief, they are considered to be the two sides of the same coin. Just like Online Banking, Mobile Banking is available 24 hours a day, 365 days a year, and can be used to perform basic functions like utility bill payments, funds transfer, balance checking, setting up spending limits, among others, on a mobile device through the internet.
How to Use Mobile Banking?
Broadly speaking, there are three ways to access of Mobile Banking:
1. Mobile application
- Check your balances
- Make payments and transfer funds between/from linked accounts
- Block your Debit/Credit Cards immediately in case of thefts
- Get mini statements, loan statements, card statements, carry out mobile phone recharge, bill payments, etc
- Set up automatic bill payments
- Make requests for Cheque books and Debit/Credit Cards
- You can also check your investment portfolio, if applicable, and monitor your Fixed Deposits, Mutual Funds, and access other investment services
2. SMS Banking
SMS Banking is suitable for those customers who do not own a smartphone or access to the internet. You can use SMS Banking to check your account balance, obtain mini-statement, and perform other similar activities. You cannot transfer funds or carry out any financial transactions here; it simply serves as a means for you to check your account details.
3. USSD Banking
USSD Banking is quite similar to SMS Banking. Once again, it can be used by customers without a smart phone or an internet connection. Instead of sending an SMS to the bank, you make use of USSD codes provided by the bank to access the services. Once you enter the code and hit the dial button, you will receive a menu where you can check your account information, mini statement, etc.
Functions / Features of Mobile Banking
Depending on the type of Mobile Banking App you use, the following are some of the typical functions of Mobile Banking or features that are available to you.
- 24*7 access to banking solutions
- Instant money transfer through IMPS/NEFT/RTGS/UPI features
- Online payments of bills & loans on time
- Transactions online via UPI
- Start investment in Mutual Fund, Fixed Deposit or Recurring Deposit using the app
- Enjoy lifestyle services like flight/bus booking, mobile recharge and more
Pros of Mobile Banking
- You can access your account details and perform basic transactions from your mobile phone, anytime, any day.
- No matter where you are in the world, as long as you have a Smartphone and internet connection, you can monitor your finances with ease.
Cons of Mobile Banking
- Mobile Banking is only useful if you have an internet-enabled Smartphone.
- You need to be well-versed with the evolving banking technologies to enjoy Mobile Banking features.
- You may be at risk of getting fake text messages or scams.
- In case your mobile phone gets lost or stolen, criminals/fraudsters can easily gain access to your Mobile Banking PIN and other sensitive data
ASHEESH KUMAR TYAGI
GREATER NOIDA INSTITUTE OF PROFESSIONAL STUDIES