Decoding the advantages and disadvantages of mobile banking
Key Takeaways
- Mobile Banking means the availability of banking services on mobile devices.
- A prominent mobile banking advantage is that it is akin to carrying a bank in your pocket.
- Mobile Banking reduces the need to visit banks for minuscule banking activities.
- You can access mobile banking services from any place, at any time.
- You cannot access mobile banking services without internet-enabled devices.
Mobile Banking refers to banking via mobile phones. Most banks today offer mobile banking services, enabling you to perform various basic tasks that usually require lining up at the bank. The most prominent advantages of mobile banking are that it saves you time and allows you to bank remotely, 24x7, from any corner of the world. It also enables you to conduct fund transfers and check account balances and statements using your mobile phone. But like every good thing in life, mobile banking, too, comes with its fair share of limitations, including internet phishing. So here is a comparison of mobile banking advantages and disadvantages.
Mobile Banking Advantages
Time Saving
Mobile Banking offers quick and instant banking services, eliminating your dependence on banks for basic transactions. Do you want to check the account balance, the details of your recent transactions or simply transfer funds in a jiffy? Just load your bank’s mobile banking app on your phone, and you are good to go.
Remote Banking
Are you travelling to a different city or perhaps going abroad? No matter where you are, all you need is a stable internet connection and a robust mobile and internet network. You can conduct various kinds of transactions form from anywhere across the globe, thanks to mobile banking.
Monitoring Transactions
Another mobile banking advantage is that you can track all your financial transactions. You can monitor your bank accounts and conveniently dispute fraudulent transactions simply by logging in to your mobile banking app.
Easy Access
Whether you want to transfer funds, check account balances and statements, or apply for loans – you can do it all with mobile banking. You can order cheque books and apply for credit and debit cards, open fixed and recurring deposits, and more using your mobile banking app.
Round-the-clock availability
Mobile banking is like carrying your bank in your pockets 24 hours a day, 7 days. You can initiate fund transfers at any hours, reach out to customer care helplines and get banking information within minutes through the mobile banking app.
Value-Added Services
Mobile banking apps also enable utility bill payments, mobile phone recharges, insurance policy purchases, etc. You can open investment securities accounts, pay taxes, purchase FASTags, open pension accounts, and more.
Mobile Banking Disadvantages
Internet reliant
A major disadvantage of mobile banking is that it functions only if you have an internet-enabled smartphone. You can also enjoy the services on regular mobile phones, but they are not as extensive as those you can get through mobile apps.
Tech Knowledge
You need to be well-versed with the constantly evolving banking technologies to enjoy mobile banking advantages. This can prove to be quite a challenge for older people or people from rural areas.
Internet Phishing
Unsafe internet and mobile banking practices can lead to internet phishing scams. You risk exposing your account details if you store your passwords and other sensitive banking information on your phone. Avoid opening scam emails or sharing passwords to enjoy mobile banking services securely.
Final Note
As is apparent, there are several advantages and disadvantages of mobile banking. While the benefits outweigh the consequences, you should take both into account and ensure you practice the proper mobile banking etiquette.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.
