Mobile banking is very convenient in today’s 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 America’s 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:
- 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 one’s 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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