What Is Mobile Banking?
Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.
Understanding Mobile Banking
Mobile banking is very convenient in today’s digital age with many banks offering impressive apps. The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to find an ATM instantly are reasons why people choose to use mobile banking. However, establishing a secure connection before logging into a mobile banking app is important or else a client might risk personal information being compromised.
Mobile Banking and Cybersecurity
Cybersecurity has become increasingly important in many mobile banking operations. Cybersecurity encompasses a wide range of measures taken to keep electronic information private and avoid damage or theft. It is also used to make data is not misused, extending from personal information to complex government systems.
Three main types of cyber attacks can occur. These are:
- Backdoor attacks, in which thieves exploit alternate methods of accessing a system that doesn't require the usual means of authentication. Some systems have backdoors by design; others result from an error.
- Denial-of-service attacks prevent the rightful user from accessing the system. For example, thieves might enter a wrong password enough times that the account is locked.
- The direct-access attack includes bugs and viruses, which gain access to a system and copy its information and/or modify it.
Steps financial advisors can take to protect their clients against cyber attacks include:
- Helping educate clients about the importance of strong, unique passwords (e.g, not reusing the same one for every password-protected site), along with how a password manager like Valt or LastPass can add an extra layer of security.
- Never accessing client data from a public location, and being sure the connection is always private and secure.
Mobile Banking and Remittances
Remittances are funds that an expatriate sends to their country of origin via wire, mail, or mobile banking (online transfer). These peer-to-peer transfers of funds across borders have enormous economic significance for many of the countries that receive them – so much so that the World Bank and the Gates Foundation have set up complex tracking mechanisms. They estimate that remittances to developing countries amounted to $529 billion in 2018, up 9.6% from the previous record high $486 billion recorded in 2017.
FAQs
Mobile banking refers to the use of a mobile device, such as a smartphone or tablet, to access and manage one's banking accounts and conduct various financial transactions. Mobile banking apps offer a convenient and secure way to manage one's finances on the go, without the need to visit a bank branch or ATM.
What is the best mobile banking? ›
Best mobile banking apps compared
| Mobile banking app | Monthly fee | APY* |
|---|
| Cash App | None | Up to 4.5% for savings |
| Chime | None | None for checking; 2.00% variable for savings |
| Sofi | $0 | 4.60% |
| Ally Invest | None for banking; $0-$1 on trades | Checking: 0.10%/0.25%; Savings: 4.35% variable |
7 more rowsJun 13, 2024
The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet. Many banks nowadays have their mobile apps for mobile banking.
What are the steps for mobile banking? ›
Step 1: Open the mobile banking app. Step 2: Click on 'Register'. Step 3: Create an mPIN using card details and click on 'Continue'. Step 4: You will receive an OTP on your registered mobile number.
What are the disadvantages of mobile banking? ›
Cons:
- Risk of hacking and identity theft.
- Tech issues or bugs can affect usability.
- Some mobile banking apps charge fees.
- Features aren't the same for all apps.
Telebanking is when you perform banking transactions over a phone call while in mobile banking you use a software/interface on your mobile device to access your account and make a transaction.
Can I have mobile banking without online banking? ›
Mobile banking requires the internet to be connected to your mobile device in order to manage your finances. A mobile banking app usually allows you to access similar, (although sometimes slightly fewer), features that you would find when online banking, but it must be done on a smartphone or tablet.
Should you use mobile banking? ›
Mobile banking or any other activity that exposes your sensitive data should never be done on public Wi-Fi. If a hacker is monitoring the public Wi-Fi or hotspot you are using, they could potentially intercept the data being transferred to and from your phone and use it to access your banking account.
Which is safer online or mobile banking? ›
So, is Mobile Banking Safer than Online Banking? Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data.
How do I activate mobile banking? ›
Mobile Registration: Select 'Mobile Registration' on the ATM screen. Mobile Banking Registration: Select 'Mobile Banking' and then 'Registration.' Enter Mobile Number: Enter your registered mobile number and confirm. Confirmation: You'll receive an SMS confirmation once the initial registration is complete.
Yes, you can use a no fee banking account for online or mobile banking. Many banks offer checking and savings accounts that have no setup fees, monthly maintenance fees, and overdraft fees. With these accounts, you will be able to access your funds through online and mobile banking with ease.
Is mobile banking easy? ›
Mobile banking apps* are an easy way to manage your money while on the go. Because of so many tech advances, mobile banking is completely safe and secure. You can skip the trip to the branch and perform easy transactions yourself like depositing checks, monitoring your balances or transferring money.
How to activate mobile banking? ›
At the ATM: After swiping the Debit Card, please choose the option 'Mobile Registration' and then select „Mobile Banking'. Under Mobile Banking, choose the option 'Registration', enter your mobile number and choose „Yes‟.
Why do people use mobile banking? ›
Advantages of mobile banking. Mobile banking apps can warn you when you spend more than you have in your account, automatically move money into savings on your payday and let you set controls on your cards to restrict spending.
How do mobile banks work? ›
How does mobile banking work? Many banks have apps you can download onto your smartphone or tablet, allowing you to access your bank account with just a few clicks. You can track your spending, pay bills, and make sure that any deposits you're expecting went through.
