What is the What is Mobile Banking? | Definition, Working, and Types

Mobile/Cellular banking is basically operating your bank account via a mobile device. Phone banking allows the customer to perform the same tasks which can be done by visiting the branch. Phone banking not only saves time but also improves financial decisions. The bank provides an app on the store. It lets you make transactions, find nearby ATMs, checks your bank balance, deposit checks, etc. Cellular banking offers various kinds of services like:

  1. Account information can be obtained like balance, history, e-statement.
  2. Transactions can be made via the app.
  3. Cellular banking also helps to open an online account for fixed/recurring deposits, mutual funds.
  4. For other services like locating nearby ATM, issuing/stopping a cheque.

Features/types – Phone banking

1. Account information data

Cellular banking gives a mini account statement

2. Transactions

Cellular banking enables users to transfer either to self or third party. It also aids in bill payments.

3. Investments

Cellular banking is essential for managing investments (term-deposits, etc.)

4. Support services

Customer support services aids to check the status of loans or credit facilities.

5. Content and news

The latest bank-related services and other financial services are provided by cellular banking.

Advantages and Disadvantages of Mobile banking:

How does it work?

  1. Any device with an internet connection is needed for making a transaction.
  2. The account number is mandatory for transactions that are available at the bottom of a check, deposit slip, or front page of passbooks.
  3. Then, log into your bank’s website via the device available.
  4. Create an online account by filling in the details and creating a password.

Example

Bank A, has a feature to help its checking account customers. It organizes and optimizes their digital money. Plus tips to save money, or alert during risk of overdraft are also given.

References

https://www.sciencedirect.com/science/article/abs/pii/S0957417409002735

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