bankingciooutlook

Key Advantages of Mobile Banking

Banking CIO Outlook | Monday, February 01, 2021

Banks are able to deliver services to customers 24 hours a day and 7 days a week. It encourages customers to be ready for purchases, as cable connectivity has enabled on-line PC access and minimized dial-up user delays.

Fremont, CA: Mobile banking is a method that enables a financial institution's clients to perform a range of financial transactions via a mobile computer, such as a mobile phone or a personal digital assistant. Mobile banking is different from mobile payments, which require the use of a mobile device to pay for products or services either at the point of sale or remotely, analogously to the utilization of a debit or credit card to pay for EFTPOS. The first mobile banking services were provided via SMS, a service known as SMS banking.

Mobile banking provides the following advantages :

Always 24 Hour Access: Banks are able to deliver services to customers 24 hours a day and 7 days a week. It encourages customers to be ready for purchases, as cable connectivity has enabled on-line PC access and minimized dial-up user delays.

Advanced penetration of mobile networks: 2G networks now account for more than 90 percent of the population in the western world and this figure is increasing steadily.

Customization: By means of Subscriber Identity Module (SIM) cards, mobile customers have a particular profile that allows personalized functionality to directly represent the way they want to transact business through mobile devices. Mobile customers can now have a built-in interface for a variety of other application services, including security keys, virtual credit cards and other personalized payment instruments, by conveniently inserting a multi-application relationship card.

WAP: The rapid evolution of global protocols such as the Wireless Application Protocol (WAP) enables communication channels between computers and mobile devices. Essentially, the WAP portion offers the ability to reform data to be displayed in wireless handsets.

Faster Data Processing Speed: improved bandwidth and data transfer rates make mobile data networks reliable and cost-effective in a real-time environment.

Security: In addition to the above listed smart card, a private key stored on the SIM card will secure e-banking transactions. Cell phones can essentially become a wireless wallet to secure proprietary transactions and financial details.

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