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 an online banking service provided by banks to their existing customers to access their banking account for carrying out a myriad of transactions using a mobile device, including smartphone and tablet, whenever users are connected to the internet.
Is it safe to use a banking app on mobile data? ›
You can certainly make mobile banking safer by taking just a few precautions. Remember — download the official banking app, update it regularly, use a VPN with a public Wi-Fi, and keep your phone close by! However, that doesn't make you completely safe from scams, malware attacks, and hacking.
Is mobile banking safe on iPhone? ›
Mobile banking can be safe on both iPhone and Android phones, it has built-in security features, regular security updates to protect you against malware or unauthorized access but it also has potential risks depending on how informed you are.
Why is it a good idea to turn off Wi-Fi while using a mobile banking app? ›
Hacked Wi-Fi
Hackers may abuse unprotected public Wi-Fi hotspots to dispense malicious software onto your device or steal login credentials. For this reason, avoid opening your mobile banking apps while connected to public Wi-Fi if possible and consider using a VPN to encrypt your connection.
Can I disable mobile banking? ›
a) Through Net Banking website: In order to de-register mobile banking, please visit website www[dot]netpnb[dot]com -> Retail Internet Banking -> Disable Mobile Banking. b) Through Customer Care: Dial customer care 1800 1800 & 1800 2021 for de-registering mobile banking.
How to activate mobile banking? ›
At the ATM: After swiping the Debit Card, please choose the option 'Mobile Registration' and then select „Mobile Banking'. Under Mobile Banking, choose the option 'Registration', enter your mobile number and choose „Yes‟.
Can hackers access your banking app? ›
Even "innocent" services like Android Accessibility Services can be used to hack you. Finally, never install banking apps from third-party sites, as they're more likely to contain malware. While official app stores are by no means perfect, they're a lot safer than a random website on the internet.
What is the safest device to do online banking? ›
Kyle Marchini, senior analyst in fraud management with research-based advisory firm Javelin Strategy & Research: "I give bank apps on mobile devices the edge when it comes to safety,” Marchini says. With computers, he says, it is easier to inadvertently download malware from hackers.
What are the disadvantages of mobile banking? ›
Cons:
- Risk of hacking and identity theft.
- Tech issues or bugs can affect usability.
- Some mobile banking apps charge fees.
- Features aren't the same for all apps.
If hackers gain access to your banking information, this puts you at risk of not only financial fraud — but also identity theft. Scammers use stolen personal data on the Dark Web to: Take out loans in your name. Open new credit cards and ruin your credit score.
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.
Why not to use online banking? ›
Cons of online banks
- Customer service can be virtual and impersonal.
- You are more likely to incur ATM fees if the online bank has no ATM network or is part of a small network.
- You can't deposit cash unless the bank is linked to ATMs that accept cash.
- The number of products tends to be more limited at online banks.
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.
Why you should turn off mobile data? ›
Using cellular data consumes data from your mobile data plan, which may lead to additional charges. If you have a limited data plan or want to avoid exceeding your data allowance, turning cellular data off when you're not actively using it can help conserve your data and prevent unexpected charges.
Why do people use mobile banking? ›
Advantages of mobile banking. Mobile banking apps can warn you when you spend more than you have in your account, automatically move money into savings on your payday and let you set controls on your cards to restrict spending.
What is an example of mobile banking? ›
Mobile banking apps can allow you to handle a wide range of banking services in one place. For example, you might be able to pay bills, deposit checks, open new accounts, or adjust your security settings all with a few taps of a button.
What is meant by banking solutions? ›
What is a core banking solution? A core banking solution (CBS) is a software system banks use to conduct and manage their primary operations. It allows customers to perform transactions from any branch rather than being limited to the branch where they opened their accounts.
What is BankMobile for? ›
BankMobile Disbursem*nts helps colleges and universities across the U.S. deliver financial aid credit balances to students securely, efficiently, and in compliance with federal regulations.
What is mobile banking mostly used for? ›
Thanks to mobile banking apps, you can manage your money on the go — from depositing checks to managing your cards and creating savings goals — easily and securely. With all these tools right in your app, you can skip the trip to the ATM or the branch and reap the benefits of mobile banking.
