Gone are the days when you drive to the bank, wait in the queue, and conduct a transaction with a teller in front of you. Today, we order a wire transfer while commuting to work on a bus or waiting in line at a restaurant.
What is mobile banking?
Mobile banking refers to a financial transaction conducted via a smartphone or similar mobile device. Mobile phones have become ever cheaper and therefore more available to billions of people around the globe.
This has inevitably led to mobile banking solutions that were happily embraced by customers everywhere. The introduction of apps on popular iOS and Android mobile platforms has contributed to the unprecedented success of mobile banking.
Most of the major banks such as Bank of America, JP Morgan Chase, Citi, and HSBC offer access to banking services via mobile devices.
Mobile banking services
Most of the services offered at a typical bank branch are now available via mobile apps. For example, you can view balances, study statements, withdraw cash, deposit checks or cash, email receipts, transfer balances, view tax forms, review credit and debit card transactions, locate ATMs and branches, set account alerts, and contact customer support … all via your mobile device.
Reasons for the fast acceptance of mobile banking
There are several possible reasons for the swift and massive acceptance of mobile banking services. The main one is the convenience of being able to do banking transactions anytime, anywhere.
Most institutions are not charging any fees for mobile banking services. When it’s free, people seldom think twice before trying the service.
A bank’s reputation depends on providing an application that’s secure. Most banking apps offer a secure environment to conduct business. So it’s no surprise that mobile banking services have enjoyed positive customer response across the globe.
Mobile banking in developing nations
It’s been estimated that the total number of mobile banking users will reach 1 billion by 2015. Around 80% of these will access the services from developing nations.
Mobile banking is expected to outgrow traffic via online banking. Mobile operators are scrambling to build partnerships with banks and technology companies to increase the access to mobile banking services.
Users in emerging countries are using mobile services for paying utility bills, domestic and international money transfers, and much more.
The case for secure transactions
Despite the success of mobile banking, security experts are still concerned about the potential risks associated with banking via mobile devices. Financial institutions are increasingly scrutinized by regulators for compliance with banking rules while securing billions of transactions handled via mobile devices.
New sets of payment security standards are constantly introduced and reviewed by security experts.
It’s hard to predict the future of mobile banking. Mobile banking may wipe out many physical branch offices in the next few decades. But whatever happens, the future likely belongs to customers who will benefit from increased access to banking services.