What is Mobile Banking?

Mobile Banking is otherwise known as mBanking, M-banking, or SMS banking and more. It is a mobile service that is used to check the account balance, payments, transactions, etc using mobile devices like Mobile Phone or PDA (Personal Digital Assistant). The previous way for mobile banking was provided through SMS. European Banks were first to introduce mobile banking services to the customers.

After the introduction of high performance smartphones in 2010 like Apple’s iPhone 4, Android OS operating smartphones and other mobile devices has increased the use of mobile banking service via apps which is downloaded on the device. The mobile banking is generally used for business operations.

Concepts of Mobile Banking Model:

The model Mobile Banking includes three concepts such as:

  • Mobile brokerage,
  • Mobile accounting, and
  • Mobile financial information services.

Mobile brokerage and accounting are transaction related. Mobile financial information services are non transaction related.

Business models in Mobile Banking:

The business models in mobile banking are divided in three categories such as:

  • Bank led model,
  • Non Bank led model, and
  • Bank focused model.

Services offered in Mobile Banking:

The services provided in mobile banking are:

  • Account information: It includes mini statements, account history, alerts, accessing to card & loan statement, mutual funds, management of pension plan & insurance policy, cheque status, ordering of cheque books, checking of balance, PIN change, blocking of stolen cards, and payment date for due.
  • Transfers, deposits, payments & withdrawals: It includes handling of micro payment, fund transfer in domestic & international, mobile recharge, process of bill payments & commercial payment, banking agent withdrawal & deposit, and peer – peer payments.
  • Support: It includes coverage of insurance, credit request, mortgage approval, and request for check books and ATM card, location of ATM’s, email, submission of complaints, tracking and data messages exchanging.
  • Investment: It carries quotes on real time stocks, services of portfolio management, mobile banking, and personalized alerts & security price notifications.
  • Content service: It has loyalty based offers, location related services, and some basic information like weather & news updates.

Advantages of Mobile Banking:

  • Easy operation,
  • High security,
  • Reliability, and
  • Scalability.

By concluding, Mobile Banking has become one of the best banking services and it is generally used by business peoples for quick account transaction.