Mobile banking is a service offered by a financial institution that allows its clients to conduct a wide range of transactions from their mobile devices. For example, it is often used to make purchases, payfac bills and initiate mobile deposits.
Banks are now competing to attract more clients through their mobile apps by offering a variety of features. Some are designed to give customers a holistic view of their money and optimize their spending habits.
Transfers
Banks provide mobile banking services that allow clients to access their account information, conduct online transactions, transfer funds, and make payments without visiting a bank branch. These services are available via SMS or unstructured supplementary service data (USSD) or through an application installed on the client’s phone.
Typical financial services mobile banking, like Current offers, include account information access, transactions, investments, support, and content services. Investment services enable clients to manage their deposits, equities, and insurance policies from the mobile application.
Most banks have mobile banking apps that allow customers to check their account balances, make transfers, pay bills, and undertake other banking activities. In addition, these apps have enhanced security over telephone banking by using fingerprint scanners and face recognition technology, which makes them a safer option for customers.
Bill Payments
Bill payments are easy to send money electronically, and many banks offer these services. They are typically free with a checking account and can save you time by eliminating trips to the mailbox.
There are two basic types of bill payment: direct pay and automated online bill payment. Both allow you to set up one-time or recurring payments through an account at a bank or service provider.
In the first model, you give your financial institution information about companies or people you owe money to, and the bank makes payments for you. You can pay a variety of bills using this method.
In the automated online bill payment model, you give a company or service provider your banking information so that they can withdraw funds from your account to make a payment. This method can be safer than the traditional stamp-and-envelope method, but it can be more expensive. Keep enough money in your account to cover your recurring automatic payments and avoid overdrawing your balance, which can lead to fees.
Banking Account Information
Mobile banking uses a mobile device, such as a cell phone or tablet computer, to conduct banking activities. It includes checking account balances or transaction inquiries, making bill payments, and receiving alerts from a bank.
Typical financial services offered by mobile banking include deposit and loan accounts. Insured depository institutions provide these services.
To offer these services, financial institutions must use secure technologies and meet regulatory requirements related to the security of personal information stored in electronic format. In addition, they must comply with supervisory guidance for providing deposit and loan products and services.
While consumers are growing more comfortable using online banking, they remain wary of security risks. As a result, many financial institutions use two-factor authentication and biometric identification to help protect customers’ accounts. Some banks also have chatbots that can answer customers’ questions in real-time, which is a popular and rising feature of fintech applications.
Alerts
Alerts help you manage your bank account more effectively by letting you know when certain transactions have been posted to your account. These can include large purchases, ATM withdrawals, and debit card transactions.
These alerts can be sent as emails, text messages, or push notifications. In addition, an event like a low balance or transaction can also trigger them.
Mobile banking customers value these notifications because they make it easy for them to monitor their accounts. They can also help them avoid unnecessary fees and fraud.
Other important alerts include Security Alerts and Bill Payments. These can alert users when their bank account has been hacked, or someone attempts to change their password. It can be very alarming, so you must take the necessary steps to protect your bank account.
