With time, Mobile banking has shifted from being a novelty to becoming a necessity.
It is an effective service extended by any financial institution, enabling individuals and businesses to carry out their financial transactions via mobile telecommunication devices. Mobile banking helps users to take care of various financial needs from anywhere at any time.
It enables customers to perform all the banking-related tasks on a smartphone and save time. Further, the integration of cellular mobile applications has made the mobile banking process seamless.
Types of Mobile Banking Services
Mobile banking services can be categorised into the following types:
Account Information Access
Account information access enables clients to check mini-statements and monitor account balances. It allows customers to retrieve details related to loan statements, card statements, and debit cards, or look for term deposits. Such a service also facilitates insurance policy management. One can enable and disable SMS alerts notification, invest in securities and more.
Investment management services encompass ways that will help clients regulate their portfolios and access the real-time view of the investment portfolios.
Under support services, clients can keep track of the status of their request for any credit facilities like insurance coverage or loan approval. Clients can also indulge in exchanging data messages and emails, which include tracking and submitting complaints and making requests for cheque book and cards. It also allows users to monitor their card requests and locate ATMs.
Finance and Latest Offers
Content services basically encompass general information like news related to finance and the latest offerings from financial institutions.
Transactional service under mobile banking allows clients to transfer funds between the linked accounts of the customers. In addition, it helps to make transfers to third parties, pay bills and monitor the remote check. Even it enables one to proceed with self-account transfers.
Advantages of Mobile Banking
Mobile banking is an incredible product of robust digitisation as it helps individuals with the following advantages.
- Mobile banking can be accessed on a 24-hour basis. Financial transactions can take place throughout the day.
- Mobile banking is highly effective in lowering the cost that results from handling transactions. It curbs the customer’s need to visit any financial institutions for deposit transactions or non-cash withdrawals.
- Business owners can efficiently process payments and receive the same from clients on their phone numbers. Furthermore, users can request different services, like opening a new account. They can also schedule payments and debit orders.
- It enables users to optimise their money with minimum effort, enabling them to save money.
- Mobile banking offers clarity regarding financial transactions, thereby bringing transparency. In addition, it bestows users with strengthening security precautions.
- Mobile banking typically involves retrieving account balances, electronic bill payments, transferring funds between a customer’s and other accounts, and checking the list of the latest transactions.
- One can opt for value-added services with mobile banking apps. For example, it helps to clear utility bill payments, insurance policy purchases, make mobile phone recharges and more.
Similarly, with RazorpayX payout services, business bodies or firms can automate their payout flows and send across thousands of payments with utmost ease. Moreover, one can easily clear payouts with a single click via dashboard payouts, APIs and Excel file uploads.
Challenges Associated With Mobile Banking
Even though mobile banking services have boosted customer convenience, one must not avoid the limitations associated with this service.
- The accessibility of the service is highly dependent on the type of device and internet connectivity facility that one uses.
- There are certain security concerns related to mobile banking services. For instance, internet scams have become quite prevalent, which can rob one of their wealth.
- Unsafe way of transaction results in internet phishing scams. Hence, it is crucial for clients to be alert to the security credentials.
Mobile Banking has significantly changed our lives.
Similarly, banking has faced prominent evolution. From traditional banking to neo-banking the evolution of the fintech space has had a significant impact on businesses today.
Neobanking: Neobanks are new-age banks without any physical location, present entirely online. They provide digital, mobile-first financial solutions for payments, money transfers, lending, and more.
Neobanks have taken business banking by storm since they make their daily financial operations seamless and automated.
Read more: Fintech
New-age Business Banking in the same way has helped shape the financial operations of businesses today significantly.
- One-stop banking solutions platforms like RazorpayX allow business owners to open current accounts, pay taxes, schedule payments, pay vendors seamlessly and check invoices from a single dashboard. This saves valuable time and effort.
- It is an accounting and banking platform that fills the gap between advanced banking solutions and finance professionals. It allows easy accounting software integration.
- With RazorpayX Payroll, businesses can automate salary payments and provide insurance policies to their employees.
Frequently Asked Questions
What is the difference between online and mobile banking?
In online banking, users do not have to download any banking apps. On the other hand, in mobile banking, users must install an application to continue with financial transactions.
How to activate mobile banking?
In order to activate mobile banking, individuals must link their mobile number with their bank account and proceed to request activation on the registered number and get the MPIN. Later, one needs to install the banking app on mobile and use login credentials to make the account functional.
How to ensure secured mobile banking?
Individuals or business owners must use strong credentials or passwords and rely on official banking apps. In addition, they must not click on any hoax links that they receive on their mobile.
What does cardless cash withdrawal refer to?
Cardless cash withdrawal is a service that allows users to withdraw cash through UPI apps without using a credit or debit card.
Is it possible to transfer funds without installing a mobile banking app?
Yes, it is possible for individuals to transfer money without downloading a mobile banking app. One can transfer funds from the official website of a financial institution. They just have to enter the necessary credentials.