What Is Mobile Banking?
Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.
Understanding Mobile Banking
Mobile banking is very convenient in today’s digital age with many banks offering impressive apps. The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to find an ATM instantly are reasons why people choose to use mobile banking. However, establishing a secure connection before logging into a mobile banking app is important or else a client might risk personal information being compromised.
Mobile Banking and Cybersecurity
Cybersecurity has become increasingly important in many mobile banking operations. Cybersecurity encompasses a wide range of measures taken to keep electronic information private and avoid damage or theft. It is also used to make data is not misused, extending from personal information to complex government systems.
Three main types of cyber attacks can occur. These are:
- Backdoor attacks, in which thieves exploit alternate methods of accessing a system that doesn't require the usual means of authentication. Some systems have backdoors by design; others result from an error.
- Denial-of-service attacks prevent the rightful user from accessing the system. For example, thieves might enter a wrong password enough times that the account is locked.
- The direct-access attack includes bugs and viruses, which gain access to a system and copy its information and/or modify it.
Steps financial advisors can take to protect their clients against cyber attacks include:
- Helping educate clients about the importance of strong, unique passwords (e.g, not reusing the same one for every password-protected site), along with how a password manager like Valt or LastPass can add an extra layer of security.
- Never accessing client data from a public location, and being sure the connection is always private and secure.
Mobile Banking and Remittances
Remittances are funds that an expatriate sends to their country of origin via wire, mail, or mobile banking (online transfer). These peer-to-peer transfers of funds across borders have enormous economic significance for many of the countries that receive them – so much so that the World Bank and the Gates Foundation have set up complex tracking mechanisms. They estimate that remittances to developing countries amounted to $529 billion in 2018, up 9.6% from the previous record high $486 billion recorded in 2017.
FAQs
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.
What is the best online mobile banking? ›
Best mobile banking apps for 2024
- Chase Bank: Best for automated savings features.
- Bank of America: Best for virtual assistance.
- USAA: Best for automated savings and automated assistant.
- Alliant Credit Union: Best for visual information.
- Huntington Bank: Best for predictive money tools.
The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet. Many banks nowadays have their mobile apps for mobile banking.
What is the most trusted online bank? ›
Top Online Banks in May 2024
- Discover Bank. Best Overall. 4.6. ...
- SoFi Bank. Best Budgeting Tools. ...
- Ally Bank. Seamless Online Experience. ...
- Varo Bank. Strong Savings APY. ...
- LendingClub Bank. Competitive CD Rates. ...
- Upgrade. Great For Payday Advances. ...
- Alliant Credit Union Bank. Best Online Credit Union. ...
- FNBO Direct Bank. Competitive Savings APY.
You don't know who has access to the network traffic and whether they can view the data you send. For better online banking security, Marchini advises using your cellular network.
Which is safer online or mobile banking? ›
Banking apps can be safer than using an online banking portal due to biometric-enabled login options for your phone and the app itself. Your face, your fingerprint and your phone are a lot harder to hack than your username and password.
Are there any disadvantages to online on mobile banking? ›
Concerns about Identity Theft and Security
Therefore, even if you may generally use mobile or online banking with confidence, be cautious to avoid using insecure networks, change passwords frequently, and safeguard your login information.
Can I have mobile banking without online banking? ›
Mobile banking requires the internet to be connected to your mobile device in order to manage your finances. A mobile banking app usually allows you to access similar, (although sometimes slightly fewer), features that you would find when online banking, but it must be done on a smartphone or tablet.
What is required to login in mobile banking? ›
Enter Debit Card information or Internet Banking username and login password. Tap Submit. Set your preferred User ID for login and tap Submit. Set MPIN (login PIN) and TPIN (transaction password).
What are two reasons to not use online banking? ›
- Customer service lacks personal touch.
- Not an option for those lacking access to the internet.
- ATM options may be limited.
- Greater due diligence required to vet the bank.
Yes, you can use a no fee banking account for online or mobile banking. Many banks offer checking and savings accounts that have no setup fees, monthly maintenance fees, and overdraft fees. With these accounts, you will be able to access your funds through online and mobile banking with ease.
What are the requirements for mobile banking? ›
However, here are some common requirements for a mobile banking app: Money transfers, card management, personalization, QR code scanner, online payments, automatic bill payments, waller integration, safe passwords, user data privacy, security certificates, and secure authentication.
How do I set up online banking for the first time? ›
Begin online banking with a few steps
- Gather your account numbers. Your account numbers should be on your paper statement. ...
- Find your bank or credit union's website. ...
- Register for access to your bank or credit union's online banking platform. ...
- Log in and take a tutorial.
Best online bank accounts in the UK
- Kroo Current Account.
- Revolut - Standard Account.
- Monzo - Current Account.
- Starling Bank - Personal Current Account.
- Chase - Current Account.
- Monese - Instant Account.
A dedicated Windows PC is good choice for your banking needs. By the way, that is not only my opinion, but European and US banking authorities have repeatedly suggested using a dedicated banking PC as well. Tablets and smartphones run on operating systems that are a generation younger and better than your normal PC.
Which account is best for online banking? ›
- HDFC Bank Savings Account. ...
- Kotak 811 Savings Account. ...
- ICICI Bank Savings Account. ...
- Axis Bank Savings Account. ...
- AU Small Finance Bank Digital Savings Account. ...
- IndusInd Bank Savings Account (3-in-1 account with Upstox) ...
- Citibank Savings Account. ...
- Paytm Payments Bank Savings Account.
Banking apps can be safer than using an online banking portal due to biometric-enabled login options for your phone and the app itself. Your face, your fingerprint and your phone are a lot harder to hack than your username and password. How do I know if my banking app is secure?
