Mobile Banking: Definition, Types, Services, Advantages, and Disadvantages

Mobile banking is very convenient in todays digital age. Many banks offer mobile banking with impressive apps. The ability to send money to personal, to make payment for merchandise, to deposit a check, to withdraw money from agents or an ATM instantly are reasons why people are using mobile banking.


What is Mobile Banking?

Mobile banking is a monetary transaction system that allows customers to conduct financial transactions using a mobile device. Customers can conduct financial transactions remotely using a mobile device such as a smartphone or tablet. They can do essential transactions anytime from anywhere.

For example, Bank of Americas mobile apps/banking is the best and largest mobile banking in the world. bKash is the largest mobile banking in Bangladesh. They have all the essential features like as receive and send money, pay bills, and mobile check deposit.


Types of Mobile Banking

There are three types of mobile banking, such as via SMS, USSD, and mobile apps.

Mobile Banking over Apps

Provide banking facilities using mobile apps. A smartphone and internet connection must be required. Accessed all the available features such as Balance inquiry, send money, make payment, pay bills, mobile recharge, and so on. Example: bKash apps by Brac Bank Ltd, and Rocket apps by DBBL.

Mobile Banking over SMS

Provide banking facilities via SMS. Linking of mobile number with A/C must be required. Accessed most of the features, including Balance inquiry and payment.

Mobile Banking over USSD

Provide banking facilities using Unstructured Supplementary Service Data (USSD). No smartphone and internet connection required. This method is safer than SMS banking. For example, *247# for bKash and *322# for Rocket.


Mobile Banking Services

A particular provider does not provide all of the mobile banking services. But some basic services like Cash In and Cash Out are offer all the providers. Here the list of services that provide mobile banking operators in Bangladesh.

  • Balance inquiry.
  • Cash deposit to any agent of mobile banking.
  • Cash withdrawal from any agent of mobile banking or ATMs.
  • Send money to another mobile account.
  • Bank deposit and bank transfer to a mobile account.
  • Merchant Bill Payment.
  • Utility bill payment, tuition fee payment, and more.
  • Receive remittance.
  • Salary disbursement.
  • Mobile recharge or buy talk time and internet.

 

Advantage of Mobile Banking

Why mobile banking is important, as it offers many advantages. Some advantages are given below:

  •  Users can make transactions or pay bills anytime. It saves a lot of time.
  • Mobile banking, through a cell phone or tablet, is user-friendly. The interface is also very simple.
  • Mobile banking is cost-effective.
  • Banking using mobile reduces the risk of fraud. The user will get a notice as soon as any amount is deducted or deposited in his/her account.
  • Users can transfer money instantly to another account in the same bank using mobile banking.
  • Mobile banking will be available when and where customers want to be.
  • Mobile banking act as a helping hand for the remote area people who are par behind from formal banking facilities.


Disadvantages of Mobile Banking

Some of the disadvantages of mobile banking are:

  • Mobile banking users are at risk of receiving fake SMS messages and scams.
  • The loss of ones mobile device often means that criminals may gain access to mobile banking related to sensitive information.
  • Modern mobile devices like smartphones are better suited for mobile banking than old models of mobile phones and devices.
  • Mobile transaction cost is very high for regular users.


Mobile banking has already been established as a powerful medium to provide efficient and real-time banking services. Mobile banking service providers are working hard towards increasing user acceptance. They are consistently improving mobile banking technology that focuses on creating a better user-friendly experience.

 

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