Mobile banking is now a rapidly expanding phenomenon. The service is provided by certain financial institutions, including banks.
But what exactly is mobile banking? What are the elements of this banking formula that arouse so much consumer interest? Response elements!
In our previous articles, we told you about mobile money and its advantages. Today, we are going to talk about mobile banking and the difference with mobile money.
What is Mobile Banking
Mobile banking is the set of techniques that make it possible to carry out banking operations from a computer, tablet or smartphone. It refers to the use of a mobile device to perform financial transactions from a bank.
Mobile banking is a digital service that also works via an app and is managed by the bank. This is a remote technical connection to facilitate communication exchanges and financial transactions of a financial institution with its customers and allows them to access banking services from anywhere.
Customers can now save time by using mobile apps to process their payments or even receive funds directly into their bank accounts through their phone numbers.
Types of mobile banking services
Mobile Banking services can be categorized as follows:
- Access to account information
Access to account information allows customers to view their account balances and statements, view transaction history, track their time deposits, view loan or card statements or their investments , etc.
- Operations
Transactional services allow customers to transfer funds to accounts at the same or other institutions, make transfers to their own account, pay third parties, and make purchases.
- Support Services
Helpdesk services allow customers to check the status of their loan or credit applications, track their card applications and locate ATMs.
Difference between Mobile Banking and Mobile Money
Very often associated, Mobile money and Mobile banking are nevertheless different, despite their similarities.
- Mobile Money is the set of services that revolve around electronic money and that use the mobile phone as the main transaction tool for the customer. It is a financial service offered to its customers by a mobile network operator or another partner entity of mobile network operators, independent of the traditional banking network. The user does not need a bank account to use mobile money services, the only prerequisite is a basic mobile phone. Instead of the traditional tools of cash, check or bank card, electronic money and a mobile phone are used to make payments, transfers, etc.
- Mobile banking, on the other hand, is a service that is defined as access to banking via a mobile phone. This concept extends to all the financial services that can be offered by any establishment approved for this purpose. Mobile Banking is the use of an application on a mobile device to access and perform banking services, such as check deposits, balance inquiries and payment transfers. If the mobile phone is also the tool for linking with the bank, it allows you to carry out payment transactions, transfers, and other transactions such as ordering a checkbook or bank card. For the user, it is therefore often necessary to have a bank account. Mobile banking is more of an extension and digitization of banking.
How mobile banking works
Many banks have apps that you can download to your smartphone or tablet, allowing you to access your bank account with just a few clicks.
Your mobile phone serves as the access channel to your bank account. This implies that you have an existing bank account while using the bank’s mobile banking system. You can track your expenses, perform basic functions like transfer funds, pay bills, check mini-statements, view balance, ensure all deposits you expect have been made, apply for loans, apply for checkbooks, stop checks, etc.
Although you cannot perform cash transactions on the app, you can deposit checks with your phone using the camera.
While banks have opening and closing hours, you can access your account 24/7 with mobile banking. And since you may not have access to a computer at all times, it is therefore convenient to have access to your money from your Smartphone.
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