With everything happening at one's fingertips on mobile devices, waiting for transactions is no longer necessary. Mobile banking is a revolutionary change that has eliminated the long queues at banks and made transactions faster and more secure through technological upgrades.
What is Mobile Banking?
Mobile banking has become increasingly popular over the years, allowing customers to access banking services using their mobile devices.
Mobile banking is a service provided by banks and other financial institutions that allows customers to access their account information, make transactions, and perform other banking functions through their mobile devices, such as smartphones or tablets. With mobile banking, customers can carry out a range of tasks, such as checking their account balance, transferring money between accounts, paying bills, and depositing checks, all from the convenience of their mobile devices.
To use mobile banking, customers typically need to download a mobile banking app provided by their bank or financial institution. The app is usually available for free on the Apple App Store or Google Play Store, and customers can log in using their existing online banking credentials. Once logged in, customers can access their accounts and perform various banking functions.
Mobile banking works by utilizing the internet and mobile networks to connect customers to their bank's servers, allowing them to access their accounts and perform transactions. Mobile banking apps use secure encryption to protect customer data, ensuring that their financial information is kept safe and secure.
One of the biggest benefits of mobile banking is its convenience. Customers no longer need to visit a physical bank branch to perform basic banking functions. With mobile banking, they can carry out banking tasks from anywhere and at any time, as long as they have an internet connection. This can be especially helpful for those who have busy schedules or who live far away from a bank branch.
Another advantage of mobile banking is that it can be faster and more efficient than traditional banking methods. With mobile banking, customers can quickly check their account balances, transfer money, or pay bills without the need to fill out paperwork or wait in long lines.
Mobile banking also provides a higher level of control and visibility over one's finances. Customers can easily monitor their account activity and receive notifications for account transactions, helping them stay on top of their finances and prevent fraud.
The Evolution of Mobile Banking: A Brief History
Mobile banking has come a long way since its inception. Before the introduction of mobile web services in 1999, mobile banking was primarily done through messages or SMS, known as SMS banking.
Before 2010, SMS banking and mobile web were the most popular mobile financial products. With the advent of smartphones running on iOS or Android operating systems, mobile banking apps started to evolve. Customers could download banking apps onto their smartphones, with more advanced features and improved transactional capabilities.
Today, many financial institutions continue to use both SMS and mobile apps to keep their clients informed about their account activities or send alerts regarding potential fraud and service updates. For example, a bank may send a text message to notify clients that their ATMs or apps will not be available during a specific period due to system maintenance. Or, a bank may send a confirmation message to the client regarding a transaction done through the mobile app.
The Importance of Cybersecurity in Mobile Banking
In today's digital age, cybersecurity has become a crucial aspect of mobile banking operations. Cybersecurity measures are designed to protect electronic information from theft or damage, ensuring that data is not misused. This ranges from personal information to complex government systems.
There are three main types of cyber attacks that can occur in mobile banking:
- Backdoor attacks, where cybercriminals exploit alternative methods to access a system that do not require usual authentication. Some systems have backdoors intentionally built in, while others are a result of error.
- Denial-of-service attacks, which prevent authorized users from accessing the system. For example, cybercriminals may repeatedly enter incorrect login credentials until the account is locked.
- Direct-access attacks, which involve bugs and viruses that gain access to a system and either copy or modify its information.
To protect their clients from cyber attacks, financial advisors can take various steps. One such step is educating clients on the importance of creating strong and unique passwords, avoiding the use of the same password for all password-protected sites, and using a password manager like Valt or LastPass to add an extra layer of security. Additionally, financial advisors should never access client data from public locations and ensure that all connections are private and secure.
The sender can then submit the transaction through their bank's online banking portal, a mobile app, or by contacting their bank directly.
With online banking, you can perform a variety of transactions, such as checking your account balance, paying bills, transferring funds, and even applying for loans or opening new accounts, all through a web portal or a mobile app provided by your bank.
Fintech has a broad range of applications, from mobile banking and insurance to cryptocurrency and investment apps.