What is Phone Banking? Introductions, advantages, Disadvantages and Features of Mobile Banking
Mobile banking / Phone banking is a service provided by a bank to its customers in which the customer of the bank can use his bank account on his smartphone from home without going to the bank. Taking advantage of mobile banking or phone banking is like having a bank in a customer’s pocket.
Mobile banking / phone banking is very important nowadays. More and more banks are offering mobile banking services or phone banking to grow their business. With mobile banking / phone banking you can use important services like paying checks, remittances, checking account balances, ordering online account statement or mini statement, finding an ATM or completing your transactions as soon as possible so customers are immediately attracted to this service.
• What are the advantages of Mobile Banking / Phone Banking ?
1. Easy account access-
Account access can be made available to the account holder at home. The account holder can easily get the information like checking the balance on the account, requesting a statement, checking the transaction history, getting the information of their deposit or loan.
2. 24 Hour Facility-
In case of those who live far away from the bank or due to some other reason it is not possible for them to go to the same bank or in the current covid period people avoid going out, we can carry out banking transactions anytime due to mobile banking / phone banking.
3. Cyber Security-
Cyber security is very important to avoid any mistakes or money laundering while using any app about internet. Cyber security keeps any electronic information private and to prevent theft or damage. Precautions are taken to ensure that account holders’ personal information or confidential government information is not misused.
4. Transparency of transactions-
When sending money to someone, we can see if the money goes to the same person. You need to have accurate information about the person in front of you.
5. Data storage –
Banks create apps for mobile banking / phone banking services. As a result, due to such technology, data storage capacity is higher than manual capacity.
• What are Disadvantages of Mobile Banking / Phone Banking?
1. Customer trust-
In today’s age of internet, mobile banking / phone banking is both a boon and a curse. Even today, many people do not trust mobile banking / phone banking because of the risk and complexity of the less educated.
2. Not available to everyone –
Mobile banking / phone banking facility is not only available in every mobile, for this the customer needs to have a smartphone as well as internet facility. Every bank creates a special type of app to avail the mobile banking / phone banking facility.
3. Risks related to mobile banking / phone banking –
Some account holders are unaware of the risks in this regard so they recklessly share their bank password or otp with another person.
4. Internet Charges –
Banks add a variety of features to their mobile banking app while creating other products including advertisements, credit facilities, discount services etc. Consists of. If you take advantage of these services, the bank charges a special fee for those services, so it is not affordable to the average customer.
• What are the seven Features of Mobile Banking / phone banking ?
1. We can carry out banking transactions anytime between 24/7 service i.e. 24 hours a day and 7 days a week.
2. We can send money from one place to another very easily and fast.
3. The bank provides high quality security for its customers.
4. The app developed by the bank includes convenient language for the customer, so the customer can avail this service in the language he is coming to.
5. ATM locator is an important feature that every customer expects. This service also increases the bank’s assets.
6. The account holder can get the information about your account statement or a / c history or balance amount, payment of check as soon as possible.
7. Installment of loan installments or deposit can be done at home.
• What are the five difference between mobile banking and internet banking •
1. In Internet Banking or Online Banking, the customer can easily conduct their financial or non-financial transactions from home on desktop or laptop, but in Mobile Banking / phone banking, the customer can do bank transactions from anywhere via mobile.
2. The key difference between phone banking and internet banking is efficiency. Laptop, pc and internet connection are three important things in internet banking, and mobile banking can be used with internet or without internet.
3. While using online banking, the customer does not have to download any separate app, we can use online banking with the help of any browser. But while using mobile banking / phone banking, the user has to download a special app of that bank.
4. If you already know about online banking then you know your username and password, but when you take mobile banking / phone banking service you have to go to the bank and apply for this service then the bank sends you the username and password.
5. In online banking, you can see Push notification only after logging in, but as it is a mobile banking / phone banking app, you can see Push notification anytime. Push notification provides information about amazing deals and discount which is useful for the user.
• What are the three types of Mobile Banking / phone banking?
There are different types of mobile banking / phone banking including SMS, USSD and other mobile apps. The types of services that the bank provides to its customers in different ways are as follows-
1. Mobile banking / phone banking services through mobile application ex. SBI’s yono app, ICICI’s iMobile app, Union Bank Of India’s U-mobile, Indian Bank’s IndOASIS, IDBI Bank’s GO Mobile +, Yes Bank’s Yes Mobile etc.
2. Mobile banking / phone banking via SMS is also called SMS banking.
3. Mobile banking/ phone banking (USSD) via Unstructured Supplementary Service Data