Mobile/Cellular banking is basically 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, checks your bank balance, deposit checks, etc. Cellular banking offers various kinds of services like:
- Account information can be obtained like balance, history, e-statement.
- Transactions can be made via the app.
- Cellular banking also helps to open an online account for fixed/recurring deposits, mutual funds.
- For other services like locating nearby ATM, issuing/stopping a cheque.
Key Takeaways
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 self or 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 aids to check 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 a new feature which leads to a more complicated user experience. According to J.D. Power studies more features lead to decreased user satisfaction. The elder age-group is mostly affected by it. |
| Paying IOUs gets easier and faster, payments get done without the need for 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, Bank of America allows customers to disable credit and debit cards remotely. Users don’t need to call and wait to follow the steps. | |
| Transaction and low balance alert are also an added feature with cellular banking. | |
| The convenience to enter a bank’s account with just the tip of a finger is possible via cellular banking. |
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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 their digital money. Plus tips to save money, or alert during risk of overdraft are also given.
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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.
