Mobile banking has become more popular in recent years. It is now a necessary tool for many people. And it’s easy! You can do things like check account balances or transfer money just by providing some information on your phone. There are plenty of advantages to mobile banking. One of these is that you can bank any time and never have to skip a beat, even if you’re half a world away. However, it also comes with a few disadvantages that our blog discusses in more detail here
Mobile Banking made it much easier to pay bills, manage your cash, and do transactions. Technological advances allow the app to have an approach that revolutionizes the banking experience.
What is mobile banking?
It is a mobile application that serves as your instant bank, performing transactions without having to queue up. The bank you have an account with suggests you install this app on your phone, where you can deposit checks and create transaction alerts, among other features.
You may also find ATMs near you and other mobile banking services like Debit, Wealth, and Pay Direct which are provided by them.
Our mobile banking app gives you 24/7 access to your account balances, transactions, payment history, and more. Add to that travel services and the ability to transfer funds in a flash, and it’s perfect for people on the go!
Statistics show that more than 79% of smartphone users have used their phones for online shopping, and over 75% or 246 million people used their phones last year to check their bank balances. 97% of millennials use smartphones as well.
There are currently close to 7 billion mobile phone users in the world. Digital banking is becoming increasingly popular as a result of this trend, as more people in society start abandoning cash for digital alternatives.
Unsurprisingly, the American Banking Association survey found that 39% of bank clients are managing their accounts via mobile apps, as it’s by far the most convenient approach for customers.
Advantages of mobile banking
Let’s explore the benefits of mobile banking and why it’s a great innovation, whether you’re an institution or a consumer.
Improved the experience of the customer
In banking, maintaining a pleasant relationship with clients is the key to success. By keeping an amicable and respectable connection with your customers, you have better chances of both retaining them and winning new ones. Mobile banking means you can carry out your transactions whenever and wherever it suits you. Accessing banking facilities 24/7 is great for those with unpredictable working hours.
With more and more people paying bills and renting rooms through their banking app, never having to worry about the mail safely delivering your payment is a nice peace of mind. A lot of banks have a payee setup option- once you fill out the necessary fields such as amount, credit card info, and receiver, you’re all set. From then on, instead of having to enter your credit card number and shipping address each time you want to make a purchase online- all you have to do is select that one option.
Mobile banking is great, but it’s not perfect. We’ve already discussed some key pros and cons of mobile banking so here are some additional features:
- 24/7 access to your account
- Possibility of money transfers
- High-level security
- Fraud alerts
- Customer support line
- Loan payments
- Bill payment alerts
- Range of other services (e.g. pay for public transport)
Compared to going to the bank in person, mobile banking options not only save you time but can also help you manage money and monitor expenses. Statistics show that over 100 million people use their phones to the bank regularly.
- 6 hours of waiting in line at the bank on average
- 20 hours of receiving help from a teller on average
- 396$ cost of paying one overdraft monthly
- 38$ of credit card late fees
Mobile banking is a great way to get clients more involved in their work. There are also many other benefits like higher productivity and quality, eliminating the human factor from certain tasks, and giving clients the satisfaction of solving problems on their own through an app.
Mobile banking services are a great way to gain control and oversight over your bank accounts. You can also monitor fraudulent transactions and make decisions about what you want to do, such as informing the bank of anything that looks suspicious.
The banking business is never simple, and that includes security. Both bank assets and personal interactions on apps require security practices from the bank. Since it’s not your social media account where the username and password would be enough to get access, it takes more than that to sign in to a banking app. For example, you might need an ATM card, a PIN code, or a one-time password token.
There are a lot of apps these days where you have to use two different ways of authenticating for your account to be secure. That can include your phone number, mail address, ID, and even fingerprints or a face scan. This kind of authentication is also the most reliable way that you can check out any transactions, no matter how much you want to send. These measures are taken to ensure maximum security as they can never be too careful with potential hazards and other malicious intentions.
The mobile banking app is a remote control for your funds. It can allow you to perform tasks on your bank balance and send someone the money wherever you are, whenever you want. Another great thing about online banking is that it provides the option to very quickly deactivate your credit card if you ever lose it. If you find your lost card, you can re-enable it with just one tap.
That being said, you can also see and manage where your credit cards are stored as a client. You can also manage your monthly subscriptions and cut off the ones that you are no longer using as well. Mobile Banking has a lot of perks like 24/7 access to your accounts and it is straightforward to monitor your funds, as you can check on things whenever you want.
Mobile banking disadvantages
One of the major pros of mobile banking is that it can make life easier for you. But there are also cons, like the risk of personal information being breached. Here’s what you should do to avoid common problems.
Most banking apps are 99.99% reliable and provide security for their customers. But, as in any industry, there is always a slight risk of cyber threats. However, most common users never have to worry about it because they never experience these problems.
Losing your phone
Mobile banking users can be vulnerable to scams, robbers, and pickpockets. Losing your phone or it being stolen gives criminals access to your bank account. If they know your password they could buy or transfer money- make sure you have a strong PIN that isn’t guessable!
- The number of fraudulent transactions for mobile apps has gone up by 600% since 2015
- 89% of digital fraud losses are the direct result of the takeover of accounts by cyber criminals.
- 1 in 20 of all fraud attacks are perpetrated through a mobile banking app
- Daily, as many as 82 new rogue applications are submitted.
- Mobile fraud losses reached more than $40 million across 14,392 breaches in 2019 alone.
Mobile banking Security
Banks are failing to develop the safest, most secure system. According to the researchers, 97% of banking apps have insufficient code protection, leading to information leakages to other apps on the device in 90% of cases. Additionally, 83% of solutions using APIs store data mindlessly, making it easy for hackers to steal it. Lastly, 80% of products use inefficient encryption methods.
The Internet Crime Complaint Center received close to 320,000 complaints as of May 28, 2020. This is nearly the same amount of complaints they had received for the entirety of 2019, around 400,000.
Another major problem of mobile banking is that it is network dependent and a network is required for any transaction network outage can also be a hindrance in the transaction of money.
Mobile banking is a convenient and easy way to manage your finances on the go. It is becoming increasingly popular as more financial institutions are offering mobile banking services. There are some risks associated with mobile banking, but these can be mitigated by taking precautions such as using a secure password and only downloading apps from trusted sources.