What is Mobile Banking? Features and Advantages

Ever wonder how you can check your bank account from your phone? Mobile banking lets you do just that. It's a service offered by many banks that allows existing customers to access their accounts and complete transactions using a smartphone or tablet.

Mobile banking apps make managing your finances convenient. You can use them anytime, anywhere, and often without any fees compared to traditional banking methods. However, it's important to remember that there can be occasional connection issues, technical problems, and security measures you'll need to follow.

This article will guide you through setting up a mobile banking app, explore the services you can access through it, and address some common security concerns. We'll help you manage your banking on the go!

What is Mobile Banking?

Mobile banking lets you use your phone or tablet to manage your finances. Many banks offer this service, allowing you to conduct various transactions directly from your mobile device. The specific features may differ depending on the bank, but some common options include:

• Checking account balances
• Viewing bank statements
• Making transfers between accounts
• Paying bills (may require additional setup)
• Purchasing mobile top-ups

Some banks take it a step further, allowing you to apply for new products like credit cards or fixed deposits through the app. In some cases, you might even be able to open a Demat account for investing directly from your mobile device.

Mobile Banking Features & Services

1. Accessibility

   With mobile banking, customers can access their accounts anytime, anywhere. They can log in to the app and check their account balances whenever they need to. Plus, they can even transfer funds between accounts, even on holidays.

2. Security

   Banks understand the importance of keeping your information safe when you use their mobile app. To make sure your transactions are secure, they may ask for a combination of things like SMS verification, location access, fingerprint scanning, or a PIN to log in.

3. Transferability

   Moving money between your accounts is a basic function of mobile banking. All transfers within the app are now secured with two-step verification, which usually involves both your app password and a one-time code sent to your phone. This two-step process helps keep your money safe when you transfer funds, pay bills, or shop online.

4. Investment Management

   Several banks allow you to trade securities directly through their mobile app. This makes investing more convenient and eliminates the need for a separate trading platform. Additionally, mobile banking lets you easily track your investments, such as deposits and stocks, from the comfort of your home.

5. Digital Payments

   Most mobile banking apps today come equipped with a QR code reader, allowing for quick and easy payments at participating merchants. Simply scan the merchant's QR code at checkout, and the payment will be processed using your account details linked to the app.

6. Customer Service

   Mobile banking offers various ways to get personalised customer support, including live chat, phone calls, and push notifications. This lets you access help without needing to visit a physical branch.

7. Navigating Your Mobile Banking App

   After logging in, most mobile banking apps offer a quick tour of the dashboard to familiarise you with the layout. This typically highlights features like viewing your account balance, checking recent statements, and accessing debit card details.

   But don't worry if you miss the tour! You can easily explore the app's features by browsing the tabs on the dashboard or using the search bar if you're looking for something specific.

How to Transfer Funds Using Mobile Banking

Here are three ways you can transfer funds using your bank's mobile app:

1. NEFT (National Electronic Funds Transfer): This option is suitable for everyday transfers and typically takes up to 30 minutes for the funds to arrive.
2. RTGS (Real-Time Gross Settlement): Use this option for larger transfers exceeding Rs. 2 lakhs. Funds are transferred immediately.
3. IMPS (Immediate Payment Service): This is a good choice for urgent transfers up to Rs. 5 lakhs. Funds are credited instantly.

Advantages of Mobile Banking Services

For Banks:

1. Reduced Costs: Mobile banking services can help banks cut down on infrastructure expenses. As more customers use mobile banking, the need for new physical branches decreases. Additionally, overhead costs go down because customers don't need to visit the bank as often. Transactions can be completed conveniently through mobile banking apps.
2. Efficient Staffing: Mobile banking allows banks to centralise their pool of experts. This means customers get access to specialists regardless of location. The bank can then make better use of its staff, while still providing account holders with strong service and support.
3. Streamlined Processes: Mobile banking apps allow for real-time document sharing and review by bank representatives. This can be done directly from the customer's phone, making complex transactions smoother and faster.

For Account Holders

1. Enhanced Security: Compared to phone banking, mobile banking offers additional security features. Fingerprint scanners and facial recognition on modern smartphones allow banks to verify a user's identity through biometrics. This adds a layer of security beyond simple passwords used in phone banking, potentially reducing the risk of fraudulent activity.
2. Increased Accessibility: obile banking apps make banking services more accessible to underserved customer segments. People living in rural areas or far from a branch can manage their finances from home using their smartphones. Additionally, some mobile banking apps offer features like video chat with sign language interpreters, further improving access for individuals who may need assistance.

Disadvantages of Mobile Banking Services

1. Increased Risk of Phishing Scams

   Mobile banking, when not used carefully, can expose you to phishing scams. These scams involve fake emails, text messages, or websites designed to trick you into revealing your account information. If you store your password or other sensitive details on your phone, they could be compromised if your phone is lost or stolen.

2. Technical Challenges and Bugs

   Using mobile banking requires some technical know-how to navigate the app and its various features. Occasionally, bugs or glitches might occur during transactions or while using other functionalities, causing frustration and delays.

Frequently Asked Questions

1. Is mobile banking safe?

   Mobile banking has become quite secure. Banks typically use a combination of methods to protect your information, including fingerprint scanners, secure passwords, and one-time verification codes (OTPs). You can also add extra layers of security by using antivirus software and a VPN while using your mobile banking app.

2. What's the difference between mobile banking and regular net banking?

   The main difference is in how you access them. Mobile banking uses your phone (through an app, SMS, or USSD) and can even work without an internet connection for some features. Regular online banking, also called net banking, requires a computer and internet access to log in through a bank's website.

3. Does using mobile banking cost anything?

   In most cases, no. Many banks offer mobile banking as a free service to their account holders. It's always a good idea to check with your bank directly about any potential fees associated with mobile banking.