Some experts believe that within the next ten years mobile banking will be the primary method of handling funds. Still, there are advantages and disadvantages to this service for both business and personal users.
What is Mobile Banking
We aren’t talking about Internet banking through your computer. This is a service provided through your bank that allows you to access funds and perform many transactions with your smartphone or tablet. Unless your phone allows that option, you will probably have to download an app.
The service can be different for businesses than it is for private individuals. Here are some advantages for both types of users.
The obvious advantage of mobile banking is that it is mobile. Individuals don’t have to go to a brick-and-mortar bank or ATM machine. They can access funds or make transfers while they are on vacation, on weekends or after hours. Business owners can make transactions even at job sites or while traveling between offices. Some banks may limit fund transfers when they are closed, but other types of banking services are always at hand.
Once the app is downloaded or the service installed on your device, transactions take only a few clicks. Most people should be able to understand the process quickly. That makes mobile banking a convenient tool for businesses because customers can make payments through the apps without worrying about installment payments. Many apps are specialized as well, such as Western Union’s international money transfer app, and allow users to make even complicated transactions in just a few steps.
Safer than Internet Banking
According to the website “Tom’s Guide,” using a mobile banking service is safer than banking from your computer. It hasn’t always been that way: apps were once not as secure as they are today, and URLs were hidden so that criminals could clone sites and impersonate banks. Today’s apps are more secure. Malware that can collect your personal information can be easily installed on your computer without your knowledge, but it is a much harder task to install malware on a secure phone.
Strong Customer Service
Banks and financial services generally have 24/7 customer service options.
Like many other innovations, mobile banking has some disadvantages as well.
For both individuals and businesses, mobile banking may have some limitations. For instance, there may be a cap to the amount of money that can be transferred, or the number of transactions may be limited. For these things, users will still have to go to their banks and complete paperwork or provide identification.
Fees and Start-up Costs
Businesses may experience a considerable cost in setting up the program. Private individuals may not see that kind of expense but, if they are regular users, some banks may charge fees.
Learning to Use
While the apps are easy to use, businesses will have to train employees in both traditional and mobile processes.
While mobile banking is safer than Internet banking because the banks issue credentials to users and often have two-step ISD access, there is still a risk of fraud. Users are subject to phone calls and fake SMS messages that are used for phishing purposes. The bulk of banking fraud is perpetrated by people known to the victim, sometimes relatives. It is important to choose difficult passwords and to change them often. Users should also be careful not to give out passwords to anyone.
If you have a smartphone, mobile banking is easy to set up and easier to use. Your transactions are safer and faster than ever before.
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