Mobile banking basically refers to the availability of banking services on one’s mobile phones. This service may be broadly classified into two broad categories: Mobile payments and mobile information services. Mobile payments include utility bill payments, cash transfers, payments to vendors, etc. Mobile information services include balance updates, transaction updates, etc. These are also at times offered to top customers as separate services, exclusive of mobile banking.
It has been observed that this banking service has been growing at a rapid pace, especially during the last few years.
It is expected to be the next big thing in the banking sector that banks would be increasing this service offered everyday. Some of the services offered by banks under it are: Mini-statements and checking of account history, alerts on account activity, access to loan statements, access to card statements, mutual funds / equity statements, insurance policy & pension plan management, status of cheques, balance checking in the account, recent transactions, blocking of (lost, stolen) cards, domestic and international fund transfers, mobile recharging, bill payment processing, and withdrawal and deposit at banking agent.
Mobile banking truly represents the adage of “Anytime, Anywhere banking”. That said, even this banking is not immune to drawbacks. With an increase in number of mobile banking users, especially those making mobile payments, the expectations keep rising. Mobile banking being relatively new and operating in an ever changing arena, banks need to continually update themselves on the emerging trends and changing needs. Banks offering mobile banking increasingly face problems such as handset compatibility, security of mobile payments, transactions and information updates. With users being from all over the world, mobile banking needs a dependable server and system that’s up and running 24×7. Programs if any, need to be up to date, and highly user friendly.
This Banking applications found in all parts of the world. People across all walks of life and from different cultures make mobile payments. Though North America and Europe are the established players in this banking, emerging markets are now Asian and South American countries. In India, surveys suggest that 43 million urban users use this service in their everyday lives. That’s a reach of 15% in the urban Indian mobile user base. Surprisingly, rural areas aren’t very far behind. This service also available in different regional languages, and the spread of mobile phones being far and wide, villages and towns also see a growing trend in this section especially in the banking information services.
The stage seems to be set to move into a new decade of banking from our mobile phones. With services like mchek coming into play, mobile banking may very well force out currency notes in many years to come.