Mobile/Cellular banking is operating your bank account via a mobile device. Phone banking allows the customer to perform the same tasks which can be done by visiting the branch. Phone banking not only saves time but also improves financial decisions. The bank provides an app on the store. It lets you make transactions, find nearby ATMs, check your bank balance, deposit checks, etc. Cellular banking offers various kinds of services:
- Account information can be obtained, like balance, history, and e-statement.
- Transactions can be made via the app.
- Cellular banking also helps to open an online account for fixed/recurring deposits and mutual funds.
- For other services like locating nearby ATMs and issuing/stopping a cheque.
Key Takeaways
- Mobile banking is a digital banking service allowing customers to conduct financial transactions using mobile devices.
- It offers balance inquiry, funds transfer, bill payments, and remote check deposits.
- Mobile banking provides convenience, accessibility, and flexibility to customers, allowing them to manage their finances anytime and anywhere.
Features/types – Phone banking
1. Account information data
Cellular banking gives a mini-account statement
2. Transactions
Cellular banking enables users to transfer either to themselves or a third party. It also aids in bill payments.
3. Investments
Cellular banking is essential for managing investments (term deposits, etc.)
4. Support services
Customer support services aid in checking the status of loans or credit facilities.
5. Content and news
The latest bank-related services and other financial services are provided by cellular banking.
Advantages and Disadvantages of Mobile banking:
| Advantages | Disadvantages |
| Examine your account all day, 24 x 7 services are provided by online banking. | Cellular banking is largely dependent on the bank’s app, which may not always work in order when required while making emergency transactions. This leads to a frustrating experience. |
| Time convenience for carrying out operations without visiting the branch, like cheque clearance. | The banks keep adding new features, creating a more complicated user experience. According to J.D. Power’s studies, more features decrease user satisfaction. The elder age group is most affected by it. |
| Paying IOUs gets easier and faster; payments get done without needing cash. You can also send a payment request as a reminder. | Mortgage through cellular banking is less preferable due to complicated bank terms; people prefer face-to-face banking. |
| Online banking has security measures to guard against cybercriminals. These security measures work even if a mobile phone gets stolen. | |
| Banks like Ally and Bank of America allow customers to remotely disable credit and debit cards. Users don’t need to call and wait to follow the steps. | |
| Transaction and low balance alerts are also added features with cellular banking. | |
| The convenience of entering a bank account with just the tip of a finger is possible via cellular banking. |
How does it work?
- Any device with an internet connection is needed for making a transaction.
- The account number is mandatory for transactions that are available at the bottom of a check, deposit slip, or front page of passbooks.
- Then, log into your bank’s website via the device available.
- Create an online account by filling in the details and creating a password.
Example
Bank A has a feature to help its checking account customers. It organizes and optimizes digital money. Plus, tips to save money or alert during risk of overdraft are also given.
Last Updated : 11 June, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
While mobile banking has numerous benefits, we should also be mindful of its potential drawbacks, such as dependency on the bank’s app and complex user experiences.
That’s a valid point. Finding a balance between adding features and maintaining simplicity is crucial.
The advantages of mobile banking are undeniable. The ability to disable credit and debit cards remotely provides an additional layer of security for users.
Absolutely, the security features are one of the key strengths of mobile banking.
It’s reassuring to have such security measures in place, especially with the increasing risk of cyber threats.
Mobile banking is the future of banking. The advantages it offers, such as remote check deposits and low balance alerts, are truly impressive.
Absolutely, the level of convenience and security it provides is remarkable.
I believe mobile banking is an essential step towards the future of banking. The security measures and additional features it offers are commendable.
Agreed, it’s a significant leap in providing greater convenience and security for customers.
While mobile banking offers many advantages, I’m concerned about its complexity. Sometimes, adding more features can make the user experience overwhelming, especially for older users.
You’re right, the increasing complexity can be a drawback for many users.
It’s important to find a balance between adding new features and maintaining a user-friendly experience.
I find mobile banking incredibly helpful. It’s great that we can get account information, make transactions, and even manage investments through our phones.
I still have concerns about the security of mobile banking, especially with cybercriminals increasing their activities.
Absolutely! It provides unparalleled flexibility and accessibility.
Mobile banking is such an innovative service! It’s very impressive that we can perform so many financial tasks directly from our mobile devices.
I completely agree with you! It’s such a time-saving and convenient way to manage finances.
The ease of carrying out financial operations through mobile banking is fantastic. I’ve been using it for a while, and it’s made my life much easier.
I agree, it’s transformed how we manage our finances.
It’s like having a bank branch right in our pocket!
The advantages of mobile banking are indisputable. Its ease of use and accessibility have revolutionized how we manage our finances.
I can’t imagine going back to traditional banking after experiencing the convenience of mobile banking.
Absolutely, it’s remarkable how technology has transformed banking.
I appreciate the detailed explanation of how mobile banking works. It makes the process much clearer for those who are unfamiliar with it.
Absolutely, understanding the mechanics behind mobile banking demystifies the process for many.