Tag: Mobile banking

BENEFITS AND LIMITATIONS: Mobile Banking

Advantages 

On these days we do our daily stuff with the help of our mobile phones, that also includes banking. Mobile banking is a free, convenient way to keep up with your finances.

Some of the advantages of using mobile banking are the following:

AVAILABILITY

There are no working hours or operations or particular requirements for mobile banking, customers can check their account, move money, pay bills and various other banking processes with the help of mobile banking. It is available 24*7 for the customers.

PAPERLESS

No one enjoys getting bank statements in the mail. With the help of mobile banking, there is no need for the customer to receive junk mail from the bank. It’s also safer because you are no longer having to get away from sensitive information into the trash.

CONTROL

Mobile banking makes it so easy to have complete control over your finances. You can monitor your balances and move money between accounts to avoid overdraft fees. With bill pay you can alert when it’s time to pay to avoid late fees, or set up recurring bill payments and not have to think about it.

SAFE

Mobile banking is safer and secure. All reputable banks and financial institutions use encryption to safeguard and protect your privacy and identity information on mobile apps.

TIME SAVING

It is time saving because we don’t want to visit the particular bank to do our banking process. We can do it with the help of mobile banking.

HELPS YOU TO TRACK YOUR FINANCES

Managing an account through your mobile also puts you in charge of your money and helps you better to know your financial standing. You can always monitor your account balance and transfer money from a different account if needed be. You can check your balance and statement at any time.

MINIMIZE ERRORS

A comprehensive mobile banking will reduce errors that users make. There hasn’t been a better time to get familiar with mobile banking as indeed, this is the only way forward. 

DISADVANTAGES

OPERATING EXPENSES

It tends to be high in traditional banking, since in addition to having administrative offices, they also have offices to serve their clients in person. Among its main operating expenses are: 

  • Paying rents from the premises where they operate
  • Payment of public services and security
  • Expenses in stationary and issuance of the plastics (for making debit and credit cards)

MOVE TO OFFICES AT CERTAIN TIMES

In case of making a transfer or other type of management, in many cases physical presence must be made in the bank’s office and within the business hours established by the bank, which is considered as a great disadvantage. 

SLOW PROCESSES

Another disadvantage is the slowest process held in the organization. Another demonstration of the slow process time that transactions between different banks usually take.

HIGH COMMISSIONS

In general, traditional banking commissions are high due to higher operating expenses, which makes many of their products or services more expensive compared to other products or fintech companies.

LOW STIMULUS TO SAVINGS

Due to lower interest rates that traditional banks usually pay their savings to the clients if there is a low saving stimulus. This is because traditional banking promotes more bank loans and they are the ones that generate more interest and collection fees, which allows them to create more fiat money and have more profits.

LIMITATION IN ONLINE BANKING

Although traditional banking is using some functions of online banking, the latter is still limited. For example, in many cases this service is conditioned to the use of some of its product. There is also the problem of limits on amount to be transferred in addition to difficulties or restriction in transferring money to other countrie

CONCLUSION

As smartphones become more commonly used, and their capabilities expand, they may increasingly be the means consumers use to access financial services and manage their finances. Their constant presence also makes them a potentially useful tool for the delivery of just in time financial information or as in decision making. 

Given the prevalence of mobile phones, particularly smartphones among minorities, low-income individuals, and younger generations, mobile technology has the potential to empower consumers and expand access to financial services for underserved populations.

The use of mobile banking has increased by more than a third in the past year, and it appears likely to continue to increase as more and more consumers use smartphones. While still small, the use of mobile phones to make payments at the point of sale has increased even more rapidly. Over a quarter of mobile phone users express some interest in using their phones to make payments at the point of sale, giving mobile payments substantial growth potential as the ability to make these payments becomes more widespread.

The two factors limiting consumer adoption of mobile banking and payments are concerns about the security of the technology and a sense that they don’t offer any real benefits to the user over existing methods for banking or making payments. With regards to security, consumers have actually become more likely in the past year to report that they simply don’t know how safe it is to use mobile banking, suggesting that consumers need to be provided with reliable and accurate information on the level of security associated with the various means of accessing mobile banking. In terms of the value proposition to consumers, the significant number of mobile users who reported an interest in using their phones to receive discounts, coupons, and promotions or to track rewards and loyalty points suggests that tying these services to a mobile payment service would increase the attractiveness of mobile phones as a means of payment.

Challenges Faced : Mobile Banking

Challenges Faced 

  • Customer awareness: because of lack of data and awareness regarding mobile banking is  a reason for less trust in mobile banking services and it’s conjointly one more reason for risk and security issue in mobile banking which is a result of this can be new technology in banking and financial set-up therefore all banking client aren’t aware of it and feel risk to adopt it therefore it’s conjointly a big challenge before of mobile banking services in India.
  • Security problems & privacy: there’s security of mobile banking services is massive issue and challenges. In mobile banking for the safety purpose PIN or countersign is employed which can be steal by the offender or unauthorized user if mobile device has loss or steal therefore user got to aware about it. Customers are use sensitive information and data in mobile therefore here risk with pass of a legitimate application as a result of application service are provided by third party it’s going to steal our info and send it to a different third party therefore we’ve to aware of applications used for WAP mobile banking services and transfer a legitimate and authorize application for group action with mobile banking services.                                                                                                                                                                                                                                                                                           
  • Virus & malware attack: there’s conjointly risk with virus and malware attack it’s going to access your account info equivalent to username, countersign and alternative info like in computing system there’s conjointly risk on virus and malware attacks on mobile banking services some  codes are written to default mobile banking like Zeus has used for attacks on SMS banking and Zeus used for steal mobile group action authentication equivalent to password and pin number. therefore it’s a conjointly massive security issue and challenge in mobile banking services.
  • Wireless network: All method of mobile banking service is finished in wireless mode therefore there’s conjointly a security risk in mobile banking services mobile device element contact with cell website and dedicated circuit and microwave for the communication services therefore if there’s any weakness in any a part of this network then risk of attacks is will increase therefore we’ve to secure of these network and network devices for an honest security services.
  • Risk in SMS mobile banking: Format of SMS is in plain text. presently end to finish secret writing isn’t available. The sole encryption is out there in the base station at transceiver and at the SMS server during transmission time. Because of this there’s a risk in SMS banking equivalent to SMS spoofing attack where the offender will send a message on the network by manipulating the user’s number.
  • Authentication issue: In mobile banking there’s authentication risk at the login time or once we access our account through the mobile system as a result of in mobile banking for the authentication PINS numbers are used however PINS authentication technique is associate degree recent method and lots of security problems such as countersign and id thievery were by stealing the password and id unauthorized access is also potential by obtaining the countersign offender might access our account. Another risk regarding authentication in mobile banking as if the mobile has been stolen then the offender may get the countersign through the mobile and might access the account by exploiting your id and password.

IMPORTANCE OF MOBILE BANKING

Mobile banking permits customers to be ready to access banking services from anywhere. Businesses and business homeowners are currently ready to save time by creating use of mobile applications to method their payments or maybe receive funds from shoppers on to their phone numbers. it’s significantly popular among tiny to medium-sized enterprises (SMEs).

With mobile technology, banks are ready to slow down on operational prices whereas still maintaining shopper satisfaction. The actual fact that any shopper of a bank will build use of their app to request a service, equivalent to opening an associate degree account or maybe the power to schedule debit orders or alternative payments from associate degree application, permits for larger transactional volumes, eventually driving business growth.

Benefits of Mobile Banking

  • Perpetually on- mobile are often always or are often portable due to inherent design, enabling users to act in activities equivalent to travel or meeting people, whereas transactions via mobile devices are equipped with Internet.
  • Location-Centric-Not solely is mobile altogether places, world Positioning System (GPS) is also created to acknowledge phones and tries to personalize supported existing services. distinguishing the situation of net users, provides a special advantage for mobile commerce over wired e-commerce. Using this technology, the mobile commerce suppliers can alter to receive and send info to a selected place.
  • Convenience- others aren’t restricted by time or space, access to electronic activities. For example, people that are stuck in traffic or waiting within the queue are going to be able to shop for their favorite Internet-based activities or manage their daily transactions through mobile commerce applications. customers can apprehend a special comfort that may improve their quality of life. By creating a lot of comfort, the client can be a lot more loyal. As a result, Communication facilities with mobile commerce applications produce a comfortable.
  • Customization – mobile is a far higher influence than personal computers. Therefore, mobile commerce producers style a lot of creative and a lot of custom mode tools. For example, exploiting demographic data collected by wireless service providers, and {data} on this location of the mobile users will do a lot of targeted advertising. Advertising messages are often custom supported by the knowledge provided through consultation with the users initial or previous users looking habits.
  • Establish ability – mobile provides to support the secure mobile phone transactions wherever personal computers are nearly unknown (no name). One person perpetually uses mobile devices and it’s ideal for private -based target promoting ,through the technology of worldwide Positioning System (GPS), service suppliers will acknowledge a user rigorously .Personalize chance to deliver messages to totally different components of area and time through sound and look.