Mobile Banking Services – The main goal of this blog essay is to establish a basic story that highlights the essential elements of mobile banking services, with a specific emphasis on information security as a crucial aspect. Mobile banking refers to the use of portable electronic gadgets, particularly mobile phones, to access and take advantage of the wide range of banking and financial services provided by banking institutions.
Mobile Banking – Smart Mobile Apps with AI
Mobile banking services (SMS notifications) were the first digital banking service offerings made by banks. Mobile money and mobile banking are viewed under the same umbrella. Currently, both of the services are encapsulated in a financial world that is viewed as complicated.
As far as mobile money and mobile banking are concerned, in terms of technology, there is no rocket science in both services. Major issues are found in business rules, business requirements, distribution channels, and regulatory requirements.
In the US market, mobile banking typically operates across all major mobile service providers in one of three ways: SMS messaging, mobile-based web, or mobile apps.
The majority of users do not acknowledge the fact that mobile money and mobile banking are two different service offerings. Both are completely separate businesses. Thanks to this technological advancement, clients can easily check the amount of money in their bank accounts, carry out digital transactions, transfer funds, meet financial responsibilities, and perform associated duties, all from a remote location. As a result, there is no need to physically go to a banking institution.
Mobile Financial Services
Unless we talk about value-added services on top of banking, mobile banking and mobile money basics remain the same as in mainstream banking (debit or credit), nothing beyond. Banks are losing out to mobile money services due to their failure to compete with MNOs and MVNOs and their scepticism about opening up their mobile banking services to run side by side with mobile money.
Mobile banking (including mobile airtime top-up services), on the other hand, is when a financial institution allows its customers to conduct financial transactions on their bank account via a mobile device. Mobile banking, also known as M-banking, basically allows a user to operate a bank account using their mobile phone.
With a registered mobile phone linked to one’s normal bank account, a bank customer would be able to perform basic operations using his mobile phone, such as topping up airtime, transferring money, checking his account balance, paying bills, and making special requests to his bank. SMS Mobile Banking and Alert is the simplest, allowing the user to transfer funds, check balances, or access account information via text message.
Texting terminology varies from bank to bank, but the overall function is generally the same. For example, texting “Bal” will obtain the account balance, while “Tra” will allow inter-account transfers. The first user registers and creates a trust relationship between their phone number and the bank server in order to verify their phone numbers with their bank, but once that’s completed, they can also set up alerts to let them know about balances or other confirmations.
Mobile Web (restricted to handset properties and the operator’s IP pool) is the second mobile banking option. Similar to online account access from a home-based computer, this option allows for checking balances, bill payments, and account transfers simply by logging into the user’s account via a mobile web browser.
Mobile banking applications for Android, iPhone, and Blackberry connect the user directly to the bank server for complete banking functionality without having to navigate a mobile web browser. These applications can be downloaded either through the bank’s website or through the iTunes store.
Conclusion -Africa is heaven for mobile money because banking penetration is less than 5%. In Asia, through countries like Indonesia, Singapore, India, and many more, mobile money services can never fly. Maybe it is correct to say it would never be a success. Chances are almost zero due to the high level of financial inclusion, the availability of ATMs, and the rise of agency banking.
When Africa delivers on its potential in terms of mobile money, the winners will be those operators who have been ready to live with the risks involved in the business. For consumers, mobile banking is a terrific way to efficiently manage the occasional administrative task on the go. For small and mid-size business owners, mobile banking gives them the precious gift of time.