Mobile Banking: What are the Advantages and Disadvantages?

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.

Banks offering mobile access mainly support some or all of the following services:

• Account Balance Enquiry
• Account Statement Enquiries.
• Cheque Status Enquiry.
• Cheque Book Requests.
• Fund Transfer between Accounts.
• Credit/Debit Alerts.
• Minimum Balance Alerts.
• Bill Payment Alerts.
• Bill Payment.
• Recent Transaction History Requests.
• Information Requests like Interest Rates/Exchange Rates.

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.

Features of mobile banking:

One of the main benefits of mobile banking is the convenience of having banking services close at hand. There's no need to go to a bank or ATM and wait for the bank to open to check your account balance, transfer money, pay your bills, or even view your statement. account. You can do it all using your cell phone.

Money transfer transactions can end when banks are open, but you can check your account balance or get an account statement regardless of time or day. Your bank account and personal data are completely secure if you use mobile banking services.

The bank will provide you with a set of credentials that you can use to log into your account and make transactions. This connection information is transmitted to you securely and since you are the only one who knows your username and password, your account is always secure.

Most banks allow you to activate two-step verification where you can only make bank transactions if you enter the one-time password (OTP) sent to your registered mobile phone number.

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.

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.

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