Mobile banking is a facility that enables customers to initiate and/or perform banking tasks on their mobile phones. This is provided by most of the banks in India and abroad. Customers can use mobile banking to view their account balance, make instant fund transfers and pay bills, etc.
There are various types of mobile banking, viz. via SMS, USSD and mobile apps. Some of the banks like SBI, have incorporated services like loan approval and linking of insurance policy in their mobile banking apps. Let us read the features and benefits of mobile banking and how to use mobile banking.
Types of Mobile Banking Services
Mobile banking is one step closer to creating a completely digitalized environment. It lessens paperwork and shrinks waiting time which is otherwise wasted in long queues.
Banks provide mobile banking services to their clients in the different ways listed here:
- Mobile Banking over mobile applications (for smartphones; e.g. SBI Yono and iMobile by ICICI Bank, etc.)
- Mobile Banking over SMS (also known as SMS Banking)
- Mobile Banking over Unstructured Supplementary Service Data (USSD)
Mobile Banking – Services Available
Mobile banking is useful to customers in the following ways:
- Access to Account Information
Information is power. And thus, knowing your exact bank balance is important. This helps you in better management of your funds. And thus, this is the primary mobile banking service provided by any bank. You can check the following:
- View account balance (balance enquiry)
- Transaction history
- e-statement of account
- Loan statements
- Card statements
- e-Passbooks
- Transactions
Making payments and transferring money from one account to another is the most basic banking activity. Therefore it only makes sense that these are the most used and in-demand mobile banking services. You can transfer funds to anyone by adding them as beneficiaries or simply via Unified Payments Interface or UPI.
- Bank to bank transfers
- Transfer of funds to self
- Payments to third parties (rent payments, bill payment, etc.)
- Giving standing instructions for periodic payments
- Payments via NEFT/IMPS/RETG/UPI/MMID
- Investments
- Opening fixed deposit/recurring deposits
- Mutual fund investments
- Portfolio management services (e.g. SBI Capital Securities)
- Other Services
Apart from the account summary, bill payments, fund transfers and investments, there are other services that a customer requires for smooth banking experience. Also, there may be times when you have some grievances and due to lack of time, are not able to address. For such extra services, you can always resort to your bank’s mobile banking and find solutions to your complaints or queries. These services include:
- ATM locators
- Branch locators
- Lodging complaint/ tracking applications
- Ordering new cheque book
- Cancelling/stopping an issued cheque
Along with mobile apps, most banks offer mobile banking services over SMS. This service is useful for those who do not have smartphones and/or internet connection. Customers need to register their mobile number with their bank in order to avail SMS banking.
USSD or Unstructured Supplementary Service Data is a type of communication via which one can exercise basic banking services. There is no need for a smartphone or an internet connection for this service. It allows services like balance enquiry and transfer of funds.
Mobile banking, either by mobile banking apps, internet banking, USSD or SMS, is protected. If you use the bank’s website or mobile app to transfer funds, etc. there are protections like firewalls and SSL encryption that make sure your data is safe and cannot be used by anyone else.