Mobile banking at your fingertips
Mobile banking basically refers to the availability of banking services on one’s mobile phones. This service can be broadly classified into two broad categories: mobile payments and mobile information services. Mobile payments include utility bill payments, cash transfers, vendor payments, etc. Mobile information services include balance updates, transaction updates, etc. These are also sometimes offered to the best customers as separate services, unique to mobile banking.
It has been observed that this banking service has been growing at a fast pace, especially during the last few years.
It is expected to be the next big thing in the banking industry as banks increase this service offering every day. Some of the services offered by banks under it are: mini-statements and account history verification, account activity alerts, access to loan statements, access to card statements, mutual fund / capital account statements, management of insurance policies and pension plans, check statements, account balance verification, recent transactions, blocking of cards (lost, stolen), national and international funds transfers, mobile recharge, bill payment processing and withdrawal and deposit in bank agent.
Mobile banking truly embodies the adage “bank anytime, anywhere.” That said, even this bank is not immune to pitfalls. With an increase in the number of mobile banking users, especially those making mobile payments, expectations continue to rise. With mobile banking being relatively new and operating in an ever-changing landscape, banks need to be continually updated on emerging trends and changing needs. Banks that offer mobile banking are increasingly facing issues such as phone compatibility, mobile payment security, transactions and information updates. Since users come from all over the world, mobile banking needs a reliable server and system that works 24/7. The programs, if any, should be up to date and very easy to use.
These banking applications are found in all parts of the world. People from all walks of life and from different cultures make mobile payments. Although North America and Europe are the established players in this bank, the emerging markets are now Asian and South American countries. In India, surveys suggest that 43 million urban users use this service in their daily lives. That’s a 15% reach in India’s urban mobile user base. Surprisingly, rural areas are not far behind. This service is also available in different regional languages, and the diffusion of mobile phones is widespread, towns and cities also see a growing trend in this section, especially in banking information services.
The stage seems set to usher in a new decade of banking from our mobile phones. With services like mchek coming into play, mobile banking may very well drive out banknotes in the coming years.
