Mobile banking

Mobile banking is a service provided by a bank or other financial

institution that allows its customers to conduct financial
transactions remotely using a mobile device such as
a smartphone or tablet. Unlike the related internet banking it uses
software, usually called an app, provided by the financial institution for
the purpose. Mobile banking is usually available on a 24-hour basis.
Some financial institutions have restrictions on which accounts may be
accessed through mobile banking, as well as a limit on the amount that
can be transacted. Mobile banking is dependent on the availability of an
internet or data connection to the mobile device.
Transactions through mobile banking depend on the features of the
mobile banking app provided and typically includes obtaining account
balances and lists of latest transactions, electronic bill payments, remote
check deposits, P2P payments, and funds transfers between a
customer's or another's accounts.[1] Some apps also enable copies of
statements to be downloaded and sometimes printed at the customer's
premises. Using a mobile banking app increases ease of use, speed,
flexibility and also improves security because it integrates with the user
built-in mobile device security mechanisms.[citation needed]
From the bank's point of view, mobile banking reduces the cost of
handling transactions by reducing the need for customers to visit a bank
branch for non-cash withdrawal and deposit transactions. Mobile
banking does not handle transactions involving cash, and a customer
needs to visit an ATM or bank branch for cash withdrawals or deposits.
Many apps now have a remote deposit option; using the
device's camera to digitally transmit cheques to their financial
institution.

History
The earliest mobile banking services used SMS, a service known as SMS
banking. With the introduction of smart phones with WAP support
enabling the use of the mobile web in 1999, the first European banks
started to offer mobile banking on this platform to their customers.[3]
Mobile banking before 2010 was most often performed via SMS or
the mobile web. Apple's initial success with iPhone and the rapid
growth of phones based on Google's Android (operating system) have
led to increasing use of special mobile apps, downloaded to the mobile
device. With that said, advancements in web technologies such
as HTML5, CSS3 and JavaScript have seen more banks launching
mobile web based services to complement native applications. These
applications are consisted of a web application module in JSP such
as J2EE and functions of another module J2ME.[4]
A recent study (May 2012) by Mapa Research suggests that over a third
of banks[5] have mobile device detection upon visiting the banks' main
website. A number of things can happen on mobile detection such as
redirecting to an app store, redirection to a mobile banking specific
website or providing a menu of mobile banking options for the user to
choose from.

A mobile banking conceptual

In one academic model,[6] mobile banking is defined as:
Mobile Banking refers to provision and availment of banking- and
financial services with the help of mobile telecommunication
devices.The scope of offered services may include facilities to conduct
bank and stock market transactions, to administer accounts and to
access customised information."
According to this model mobile banking can be said to consist of three
inter-related concepts:

 Mobile accounting
 Mobile financial information services
Most services in the categories designated accounting and brokerage are
transaction-based. The non-transaction-based services of an
informational nature are however essential for conducting transactions
– for instance, balance inquiries might be needed before committing a
money remittance. The accounting and brokerage services are therefore
offered invariably in combination with information services.
Information services, on the other hand, may be offered as an
independent module.
Mobile banking may also be used to help in business situations as well
as for financial situation
Handset accessibility
There are a large number of different mobile phone devices and it is a
big challenge for banks to offer a mobile banking solution[buzzword] on any
type of device. Some of these devices support Java ME and others
support SIM Application Toolkit, a WAP browser, or only SMS.
Initial interoperability issues however have been localized, with
countries like India using portals like "R-World" to enable the
limitations of low end java based phones, while focus on areas such as
South Africa have defaulted to the USSD as a basis of communication
achievable with any phone.
The desire for interoperability is largely dependent on the banks
themselves, where installed applications(Java based or native) provide
better security, are easier to use and allow development of more
complex capabilities similar to those of internet banking while SMS can
provide the basics but becomes difficult to operate with more complex
transactions.
There is a myth that there is a challenge of interoperability between
mobile banking applications due to perceived lack of common
technology standards for mobile banking. In practice it is too early in
the service lifecycle for interoperability to be addressed within an
individual country, as very few countries have more than one mobile
banking service provider. In practice, banking interfaces are well
defined and money movements between banks follow the IS0-8583
standard. As mobile banking matures, money movements between
service providers will naturally adopt the same standards as in the
banking world.
In January 2009, Mobile Marketing Association (MMA) Banking Sub-
Committee, chaired by CellTrust and VeriSign Inc., published the
Mobile Banking Overview for financial institutions in which it discussed
the advantages and disadvantages of Mobile Channel Platforms such as
Short Message Services (SMS), Mobile Web, Mobile Client
Applications, SMS with Mobile Web and Secure SMS.[8]
Security[edit]
As with most internet-connected devices, as well as mobile-telephony
devices, cybercrime rates are escalating year-on-year. The types of
cybercrimes which may affect mobile-banking might range from
unauthorized use while the owner is using the mobile banking, to
remote-hacking, or even jamming or interference via the internet or
telephone network data streams. This is demonstrated by
the malware called SMSZombie.A, which infected Chinese Android
devices. It was embedded in wallpaper apps and installed itself so it can
exploit the weaknesses of China Mobile SMS Payment system, stealing
banks credit card numbers and information linked to financial
transactions.[9] One of the most advanced malwares discovered recently
was the Trojan called Bankbot. It went past Google's protections in its
Android app marketplace and targeted Wells Fargo, Chase,
and Citibank customers on Android devices worldwide before its
removal by Google in September 2017.[10] This malicious app was
activated when users opened a banking app, overlaying it so it can steal
banking credentials.
In the banking world, currency rates may change by the millisecond.
Security of financial transactions, being executed from some remote
location and transmission of financial information over the air, are the
most complicated challenges that need to be addressed jointly by mobile
application developers, wireless network service providers and the
banks' IT departments.
The following aspects need to be addressed to offer a secure
infrastructure for financial transaction over wireless network :

1. Physical part of the hand-held device. If the bank is offering

smart-card based security, the physical security of the device is
more important.
2. Security of any thick-client application running on the device. In
case the device is stolen, the hacker should require at least an
ID/Password to access the application.
3. Authentication of the device with service provider before
initiating a transaction. This would ensure that unauthorized
devices are not connected to perform financial transactions.
4. User ID / Password authentication of bank's customer.
5. Encryption of the data being transmitted over the air.
6. Encryption of the data that will be stored in device for later / off-
line analysis by the customer.
One-time password (OTPs) are the latest tool used by financial and
banking service providers in the fight against cyber fraud.[12] Instead of
relying on traditional memorized passwords, OTPs are requested by
consumers each time they want to perform transactions using the online
or mobile banking interface. When the request is received the password
is sent to the consumer's phone via SMS. The password is expired once
it has been used or once its scheduled life-cycle has expired.
Because of the concerns made explicit above, it is extremely important
that SMS gateway providers can provide a decent quality of service for
banks and financial institutions in regards to SMS services. Therefore,
the provision of service level agreements (SLAs) is a requirement for
this industry; it is necessary to give the bank customer delivery
guarantees of all messages, as well as measurements on the speed of
delivery, throughput, etc. SLAs give the service parameters in which a
messaging solution[buzzword] is guaranteed to perform.
Scalability and reliability[edit]
Another challenge for the CIOs and CTOs of the banks is to scale-up
the mobile banking infrastructure to handle exponential growth of the
customer base. With mobile banking, the customer may be sitting in any
part of the world (true anytime, anywhere banking) and hence banks
need to ensure that the systems are up and running in a true 24 × 7
fashion. As customers will find mobile banking more and more useful,
their expectations from the solution[buzzword] will increase. Banks unable to
meet the performance and reliability expectations may lose customer
confidence. There are systems such as Mobile Transaction
Platform which allow quick and secure mobile enabling of various
banking services. Recently in India there has been a phenomenal
growth in the use of Mobile Banking applications, with leading banks
adopting Mobile Transaction Platform and the Central Bank publishing
guidelines for mobile banking operations.
Application distribution[edit]
Due to the nature of the connectivity between bank and its customers, it
would be impractical to expect customers to regularly visit banks or
connect to a web site for regular upgrade of their mobile banking
application. It will be expected that the mobile application itself check
the upgrades and updates and download necessary patches (so called
"Over The Air" updates). However, there could be many issues to
implement this approach such as upgrade / synchronization of other
dependent components.
Studies have shown that a huge concerning factor of having mobile
banking more widely used, is a banking customer's unwillingness to
adapt. Many consumers, whether they are misinformed or not, do not
want to begin using mobile banking for several reasons. These can
include the learning curve associated with new technology, having fears
about possible security compromises, just simply not wanting to start
using technology, etc.

Mobile banking in the world[edit]

See also: List of countries by mobile banking usage

This is a list of countries by mobile banking usage as measured by the

percentage of people who had non-SMS mobile banking transactions in
the previous three months. The data is sourced from Bain, Research
Now and Bain along with GMI NPS surveys in 2012.[13][14]

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1  South Korea 47%

2  China 42%

3  Hong Kong 41%

4  Singapore 38%

5  India 37%

6  Spain 34%

7  United 32%
 Usa
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States

8  Mexico 30%

9  Australia 27%

10  France 26%

 United
11 26%
Kingdom

12  Thailand 24%

13  Canada 22%

14  Germany 14%

15  Pakistan 9%

African nations such as Kenya would rank highly if SMS mobile

banking were included in the above list. Kenya has 38% of the
population as subscribers to M-Pesa as of 2011.[15] Though as of 2016
mobile banking applications have seen a tremendous growth in Kenyan
banking sector who have capitalised on android play store and apple
store to put their applications. Kenyan banks like Equity Bank Kenya
Limited Eazzy banking application and The Co-operative Bank Mco-op
cash application have proved to be a success mobile banking
applications.
Mobile banking is used in many parts of the world with little or no
infrastructure, especially remote and rural areas. This aspect of mobile
commerce is also popular in countries where most of their population
is unbanked. In most of these places, banks can only be found in big
cities, and customers have to travel hundreds of miles to the nearest
bank.
In Iran, banks such as Parsian, Tejarat, Pasargad Bank, Mellat,
Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial
provides the service in Guatemala. Citizens of Mexico can access mobile
banking with Omnilife, Bancomer and MPower
Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-
Pesa Service, which is mainly used to transfer limited amounts of
money, but increasingly used to pay utility bills as well. In
2009, Zain launched their own mobile money transfer business, known
as ZAP, in Kenya and other African countries. Several other players in
Kenya such as Tangerine, MobiKash and Funtrench Limited also have
network-independent mobile money transfer. In Somalia, the many
telecom companies provide mobile banking, the most prominent
being Hormuud Telecom and its ZAAD service.
Telenor Pakistan has also launched a mobile banking solution[buzzword], in
coordination with Taameer Bank, under the label Easy Paisa, which
was begun in Q4 2009. Eko India Financial Services, the business
correspondent of State Bank of India (SBI) and ICICI Bank, provides
bank accounts, deposit, withdrawal and remittance services, micro-
insurance, and micro-finance facilities to its customers (nearly 80% of
whom are migrants or the unbanked section of the population) through
mobile banking.[16]
In a year of 2010, mobile banking users soared over 100 percent
in Kenya, China, Brazil and United States with 200 percent, 150
percent, 110 percent and 100 percent respectively.[17]
Dutch Bangla Bank launched the very first mobile banking service
in Bangladesh on 31 March 2011. This service is launched with 'Agent'
and 'Network' support from mobile
operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase,
Inc. has provided software solution[buzzword] with their local partner
Neurosoft Technologies Ltd. There are around 160 million people in
Bangladesh, of which, only 13 per cent have bank accounts. With this
solution[buzzword], Dutch-Bangla Bank can now reach out to the rural and
unbanked population, of which, 45 per cent are mobile phone users.
Under the service, any mobile handset with subscription to any of the
six existing mobile operators of Bangladesh would be able to utilize the
service. Under the mobile banking services, bank-nominated Banking
agent performs banking activities on its behalf, like opening mobile
banking accounts, providing cash services (receipts and payments) and
dealing with small credits. Cash withdrawal from a mobile account can
also be done from an ATM validating each transaction by 'mobile
phone & PIN' instead of 'card & PIN'. Other services that are being
delivered through mobile banking system are person-to-person (e.g.
fund transfer), person-to-business (e.g. merchant payment, utility bill
payment), business-to-person (e.g. salary/commission disbursement),
government-to-person (disbursement of government allowance)
transactions.
In May 2012, Laxmi Bank Limited launched the very first mobile
banking in Nepal with its product Mobile Khata. Mobile Khata
currently runs on a third-party platform called Hello Paisa that is
interoperable with all the telecoms in Nepal viz. Nepal
Telecom, NCell, Smart Tel and UTL, and is also interoperable with
various banks in the country. The initial joining members to the
platform after Laxmi Bank Limited were Siddartha Bank, Bank of
Kathmandu, Commerz and Trust Bank Nepal and International
Leasing and Finance Company. In country with roughly 30 million
population, over 5 million have subscribed to mobile banking in
Nepal[18] as per the recent data from Nepal Rastra Bank,[19] the central
bank of Nepal.
Barclays offers a service called Barclays Pingit, and Hello
Money offering services in Africa, allowing transfer of money from the
United Kingdom to many parts of the world with a mobile
phone. Pingit is owned by a consortium of banks. In April 2014, the
UK Payments Council launched the Paym mobile payment system,
allowing mobile payments between customers of several banks and
building societies using the recipient's mobile phone number. [20]
In Nov 2017 the State Bank of India launched an integrated banking
platform in India called YONO offering conventional banking functions
but also payment services for things such as online shopping, travel
planning, taxi booking or online education.[21]
In January 2019, the German direct bank N26 overtook Revolut as the
most valuable mobile bank in Europe with a valuation of $2.7 billion
and 1.5 million users.[22][23]
Following is a list showing the share of people using mobile banking
apps during the last three months in selected countries worldwide in
2014. The list is based on a survey conducted by statista.com including
82,914 respondents.[24]

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1  Indonesia 77%

2  China 73%

3  Thailand 64%

4  India 59%

5  Singapore 58%

6  Poland 58%

 United
7 32%
States
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8  Malaysia 54%

9  Hong Kong 49%

10  Australia 47%

11  Mexico 45%

12  Spain 44%

 United
13 43%
States

14  Italy 42%

 United
15 41%
Kingdom

16  Brazil 39%

17  Canada 34%

18  Portugal 31%
 Usa
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19  France 30%

20  Belgium 27%

21  Germany 21%

19%
22  Japan

Enhance Your Customer Experience with Mobile Banking

Tech-savvy consumers today not only expect easy and secure mobile
access to their bank accounts, but to be courted with highly
personalized offers. We’re here to help you reach this growing group.
Our solutions can generate new revenue streams via mobile by
connecting you with qualified prospects and making in-the-moment
offers at the right time.
Mobile banking can enhance your customers’ convenience:

 Saving time and expense — 24-7 access to account activity anywhere

 Improving control — fund transfers, online bill payment and
customized alerts for low balances
 Increasing security — push notifications and alerts to prevent fraud
 Improve Your Mobile Banking Strategy
Using mobile banking strategies, banks have an incredible opportunity
to increase the number of relationship touch-points they have with their
customers. Mobile banking uncovers unique opportunities to:

 Introduce new banking products

 Increase cross-sell and up-sell
 Trigger personalized interactions with customers

The tools are available today to generate new revenue streams via
mobile and to connect with qualified and verified customers and
prospects so you can make in-the-moment offers on their terms.
App-only ATM withdrawals
"The thing I'm most excited about is the ability to withdraw money at
ATMs using only an app. That means no more getting stuck without
cash if you don't have your card on you or if it's stolen. Some ATMs are
using near-field communications technology and/or Apple Pay. Others
could use a QR code or give you codes to punch in. Chase Bank, for
example, is offering cardless, app-based ATM transactions at specific
locations, working with Apple Pay, Google Pay and Samsung Pay.”

Prominence and dominance in voice banking

“Many experts are convinced voice will be the dominant user experience
in the next year or two. By 2020, 50 percent of all web searches will be
voice generated. Companies must begin to support a voice-first
approach or get left behind. They also need to do more than just
optimize for sound-driven search. Voice user interface [VUI] improves
customer engagement, conversions and insights. So the true challenge
for the C-suite lies in finding where it makes the most sense for their
business.”

—Ed Price, director of compliance at Devb

Making mobile human

“Consumers want and need more than a digital-only experience from
their banks. They need help navigating those moments when life and
money meet.  Umpqua recognized early on that human connection still
matters, even as DIY digital banking tools continue to proliferate. Last
year, we unveiled our Human Digital Banking Strategy—a vision for
banking in the digital age that keeps people at the center of the
customer experience and banking relationship. And this fall we
launched the Umpqua Go-To app, our first Human Digital Banking
platform. It gives every customer the choice of personal banker devoted
to their financial needs regardless of account balance. We’re already
seeing the power and possibilities of technology to create a more
meaningful customer experience.”

Growth of biometric authentication

“As we continue to see a rise in data breaches, which are also advancing
in sophistication, biometric technology is no longer simply a ‘nice to
have’ for banks and financial institutions. Rather, it’s a ‘need to have.’
As a recent MasterCard study shows, users are prepared and willing to
adapt biometrics as password replacements; they see it as a more
secure, convenient process. With this, financial institutions worldwide
are investing in mobile banking authentication for employees and
customers alike in order to deliver a secure, friction-free log-in
experience from anywhere.”

Earlier identity verification

“Identity verification at the earliest point minimizes the potential for
fraud and those banks that use global consortium data will have a
significant edge. ‘Crowdsourced’ data enables financial institutions to
track digital identity and monitor transactions across multiple entities
and geographies. That gives them a more global view of the device and
the person behind it. They can make better real-time decisions that help
thwart fraudsters—but in a way that’s seamless to the legitimate
customer.”

Using data to the customer’s advantage

“The most important technology in mobile banking is not the app itself
but rather the AI and machine learning algorithms that should work
behind the scenes.

"In a recent BAI Banking Outlook study, only 34 percent of banks

indicate that they always use data in a way that better serves customers.
Perhaps that is why, in the same report, 52 percent of millennials said
they would switch banks for better mobile or digital capabilities. More
urgently, the report showed that Net Promoter Scores (NPS) dropped
by almost 14 percent for cross-sold customers. NPS should increase for
these customers if the bank continuously analyzed customer transaction
and journey data. It results in the delivery of relevant, personalized
experiences that are memorable and valued by customers.”

Concentrated apps, new payment methods

“When you look to the early adopter side of the trend curve, you see
things such as advice-driven AI services to help with financial planning,
new payment methods moving away from more traditional services we
see today from cards, new forms of credit functionality, and
enhancements to the basics. All these will build on great app experiences
already in market. I also think we’ll see more convergence or
partnerships to bring apps together, so maybe we won’t be need four or
five apps, but rather one app with four or five services you can reach
through it

Non-traditional banks will rival major FIs

Alex Matjanec: "We're seeing customers sign up in droves for accounts
with non-traditional banks. Chime just opened 2 million online checking
accounts and they're adding more customers monthly than Wells Fargo.
Companies such as MoneyLion are enabling microloans based on
recurring money habits. Want your paycheck two days early? No
problem. Need a quick $500 loan? You can get it as long as your recent
financial data shows you can pay it back. Overall, there will be more
loan-factor ways to increase customers' buying power."

The advance of mobile-only banks

James Stickland: “We’ve begun to see the rise of mobile-only banks,
which demonstrates just how much convenience drives the modern
consumer. With institutions such as Amsterdam’s bunq making waves
as one of the world’s first mobile-only banks … customers can easily
sign up for accounts on the go, eliminating the paperwork and trip to
the brick-and-mortar bank branch. And as biometric authentication is
paired with mobile banking, financial institutions will extend a hand to
the unbanked or underbanked, who may be unable to verify their
identify through a credit history or permanent address.”
 From mobile banking provider to major financial partner
Rilla Delorier: “Using technology to create more meaningful and deeper
connections with customers will drive mobile banking strategies for
years to come. Innovative digital solutions, data and analytics, and a
customer-first approach will enable banks to build closer human
connections and solve financial problems.”

David Wallace: “AI and machine learning, used in real-time customer

experience and customer journey optimization applications, will boost
customer engagement, loyalty, NPS and revenue. Customers will come
to see their bank as a partner in their individual financial experiences,
instead of just a mobile banking app provider that they can kick to the
curb when a shinier app comes along.”

Summary

A banking app for the iPhone alone does not make a mobile banking strategy of a
bank. Using open innovation approaches and new technologies, banks can develop
and implement a sustainable mobile banking strategy. The example of the
Commonwealth Bank of Australia shows how modern banks involve their most
creative customers to create the future of banking. It also shows how mobile
banking is implemented as part of a comprehensive Customer Touch Point
strategy. Meanwhile, there are first innovative providers of advanced mobile
banking IT platforms, such as Market Simplified. These platforms help to create
mobile services beyond online banking and to master the diversity of mobile
devices.

Strategic weaknesses of current mobile banking strategies

Mobile banking apps studies such as of MyPrivateBanking and of the Frankfurt

School of Finance & Management disclose some strategic weaknesses in the offers
of banks. In essence, one can identify four weaknesses:

1. 1.Many banks limit the mobile banking offering to less informative, basic
services such as account overview, money transfer and branch finder
2. 2.The banks do hardly make use of the capabilities (camera, GPS, ...) of the
mobile devices
3. 3.The apps are mostly "stand alone" offerings that are not involved in sales
and marketing processes
4. 4.Most banks offer only apps for the iPhone and exclude up to two thirds of
their customers

I see two reasons for the listed weaknesses.

On the one hand, lack of creativity, ideas and innovation spirit. It thus appears that
banks cannot imagine how to offer mobile banking beyond the current online
banking.

On the other hand, the banks apparently have not found a solution to cost-
efficiently integrate the variety of mobile end devices and operating systems into
their IT landscape.

Source: nielsen, German Smartphone Market, Q3 2011

For both, there are solutions.

Open Innovation for mobile financial concepts for the future

In order to gain new ideas banks could follow an open innovation approach, start 

an idea competition and search for mobile financial concepts of the future. These
ideas could help banks to reinvent sales and production processes - from a
customer perspective. An example of such an approach is the current CODE_n
competition that looks for digital concepts of the future. In just two months, the
initiator of CODE_n, the technology company GFT, collected more than 400 ideas.

A striking example from the world of banking is Commonwealth Bank of

Australia, which has launched an open innovation campaign to engage their most
creative customers to design the future of the bank.

There are new technologies available to support all mobile devices cost-
efficiently

Many of today's IT landscapes of traditional banks are outdated, expensive to

maintain and operate, inflexible and have functional gaps. Given the diversity of
new mobile devices it is a technical and economic challenge to offer mobile
financial applications to all bank customers. Still banks either develop several
individual native apps or provide HTML-based solutions. The former is medium to
long term not cost efficient, the latter can not exploit the technical capabilities of
the various mobile devices, which means that customers do not use these offers.

A technology that has already mastered these challenges is the innovative platform
AXS 360° of Market Simplified. AXS 360° is a pure messaging system without a
separate data management, which was developed exclusively for the financial
industry. Functions from existing applications of the banking IT landscape are
normalized and provided specifically for all major mobile operating systems (IOS,
OS, Android, Windows). Thus AXS 360° creates for all bank customers native
mobile experiences. For the banks, AXS 360° allows medium to long-term cost
savings of up to 50% compared to alternative approaches.
Source: AXS 360° Platform; Market Simplified

Conclusion

A banking app for the iPhone alone does not make a mobile banking strategy of a
bank. Using open innovation approaches and new technologies, banks can develop
and implement a sustainable mobile banking strategy as part of a comprehensive
Customer Touch Point strategy.

The Reserve Bank of India recently informed banks to encourage mobile banking.
In coming days we will see more number of people getting addicted to the ease of
mobile banking. In the internet era, mobile banking can be considered as boon as
well as bane. However, many people still are not able to relay on mobile banking
due to its exposure to risk. Here are few safety tips which you can consider. For
people who are planning to go with mobile banking, here are few advantages and
disadvantages to keep in mind.
Advantages of Mobile Banking In Mobile banking, the user can transfer funds
from your bank account to another bank account with a smartphone just with
the help of the internet, from anywhere to everywhere. It is available for 24
hours and easy and convenient mode for many Mobile users in the rural
areas. Mobile Banking is said to be more secure and risk-free than online
Internet Banking. With the help of Mobile, Banking user can transfer funds,
and pay bills, checking account balance, study your recent transaction, block
your ATM card, etc. Mobile Banking is cost-effective, and Banks offer this
service at less cost to the customers. Disadvantages of Mobile Banking Mobile
Banking is not available on all mobile phone. Sometimes, it requires you to
install apps on your phone to use the Mobile Banking feature which is
available on the high-end smartphone. If the customer does not have a
smartphone than the use of Mobile Banking becomes limited. A transaction
like transfer of funds is only available on high-end phones. Regular use of
Mobile Banking may lead to extra charges levied by the bank for providing
the service. Mobile banking users are at risk of getting fake SMS messages
and scams. The loss of a mobile customer device often means that criminals
can gain access to your mobile banking PIN and other sensitive information.
Risks associated with mobile banking Apart from this there are the usual risks
associated with mobile banking that could include hacking. However, one
needs to be careful and not share the password, just as you apply the same
principal to the desktop. It is believed that bulk of the banking frauds take
place through known relatives. So be careful when you share your mobile
banking password. In fact, we strongly suggest that you have a screenlock for
your mobile whereby nobody would be able to open the same. Steps to
improve safety when banking with mobile Make sure that you do not open a
link through your email that is unknown. By doing so, you are making
yourself more vulnerable to mobile banking frauds. Also do not access your
mobile banking from a wi fi spot. This can be extremely dangerous. If you
have your own data card that should be good enough. Another mobile
banking saftey tip that you must adopt is to ensure that you do not use easy
passwords. That can be extremely dangerous and full of risks. Also read: 7
common internet banking mistakes to avoid Conclusion As is the case always
comfort and ease will come with some risk. You need to be careful on the
mobile as well, though it brings lesser risk.

What Are The Disadvantages Of Mobile Banking.

Some of the disadvantages of mobile banking are:
• Security: The one most prominent issue faced is security of the account
information stored on the mobile devices.
• Mobile banking users can receive fake messages regard disclose of key financial
details as hackers here pose as lead banks or financial advisors.
• Mobile banking users assume the cost of smartphone or tablet device and the data
usage cost that make their mobile banking possible.
• The consumer may experience a charge from the financial institution for using
the service.