Mobile banking has grown rapidly the last decade and it is now almost impossible to find a bank that does not offer it. There are actually even banks that only exist online and hence downloading their app is the only way to interact with them for any number of reasons you may wish to. The shift to “mobile banking” is a global phenomenon which has empowered many African countries but also the everyday users in the western world.
You see, one would think that mobile phones are not the safest of devices. You carry them with you, you can lose them at any time. However, with modern data encryption and security techniques, it seems that mobile banking is safe.
What is mobile banking?
Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis. Mobile phones have changed how things work, they have also given a peek into our future. If you are an up and coming entrepreneur or financial expert, the following information can be very useful for you.
Why are people switching to mobile banking on their phones though? ever so swiftly?
Let’s see have a look at the 4 main reasons we believe are subconsciously making the public worldwide, move to mobile banking and helping to slowly make “paper banking” and visits to the bank a thing of the past.
1. Easy to use
Let’s start with the most obvious factor in the rise of mobile banking which is of course its “ease of use”. You can check your balance, transfer funds or simply export your last transactions all on the go and in the “nick of time”. These days no one has the energy, will or time to physically visit their banks and stand in queues for minor banking tasks which hence making the above one of the primary reasons people are rapidly switching to mobile phone banking.
2. Accessibility & Speed
Accessibility and Speed are also key reasons as to why people are moving to online or mobile banking. On your smartphone, with an internet connection, you can make banking transactions. Conventionally you would need a checkbook, sign it and take it to the bank, or go through the deposit slips and demand draft forms, but now you can log in with your secure password and make transfers, pay bills and check your balance.”
3. Paperless banking
Other than the obvious environmental effects and subsequent enormous waste (which banks are obviously aware of both in real and PR terms), it also saves bank a tremendous amount of money on printing, posting and other related costs.
The other aspect of going paper-free is of course risk and security. Files can be lost, stolen or get damaged. A digital footprint, however, is harder to remove, unlikely to be damaged by a cyber accident and it is also easier and cheaper to store.
4. Mobile banking is more secure
With the invention of two-factor authentication models and advanced encryption techniques mobile banking is much more secure than you think. In fact, your signatures are more likely to be successfully forged than your mobile phone hacked.
Almost every financial app provides you with a push notification service that sends you a message on your mobile every time a transaction occurs and if you are reasonably careful, mobile banking is as secure as it gets.
It is quite clear from all the evidence in the markets and mentioned above that Online Banking is one more technological evolution that evidently improves our lives and is here to stay.
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