Mobile Banking

Why is Mobile Banking an advantage? What does it offer?

As the above paragraphs listed, mobile phones, especially smartphones have flooded Indian households in large numbers. The Internet is also available even in the remotest of areas, making mobile phones a strategic partner to the development of banks’ service portfolio. In a competitive world where banks are looking to garner more customers and to retain their huge customer base, Mobile banking gives banks the advantage to offer their customers a dynamic and customizable platform for all their banking needs. Mobile banking can allow customers to access more than 200 different banking services with a single click. However, the single most advantage of mobile banking is accessibility. It allows customers to access their bank on their smartphones at their fingertips.

Ease of access: Mobile banking allows you instant access to your bank account with a few clicks. Whether you are accessing mobile banking on an app or on your mobile browser, the user interface is designed in simple terms that are easy for all age groups to understand and execute. Most of the user interfaces are interactive and allow customers to carry out transactions with ease. This is particularly helpful for aged customers who are novices at using smartphones. Another most important benefit of using mobile banking is that it is free of cost. You do not need to pay any charges or fees to use mobile banking.

A single destination: Mobile banking allows users to integrate all their relationships with a particular bank under a single login. This includes their bank accounts, credit cards, Demat account, Insurance policies, UPIs, and investments under a single umbrella. This enables better management of your relationships with the bank.

Fund transfers: Sending and receiving money has already seen advancements beyond a layman’s imagination. Mobile banking has only furthered this feature by leaps & bounds. Fund transfers are now done in real-time with RTGS or without any bank account details using IMPS. There are no more hassles of writing cheques or depositing them physically in the branch. This has saved enormous costs by reducing paper usage and thus saving a large number of trees.

Bill Payments: The boon of paying bills through mobile banking is highly underrated. There is still huge apprehension among the public in using mobile phones to pay bills of any kind. They still rely on physical bill payments that ensure that their account is rightly credited. This misconception is slowly lifting encouraging more and more people to utilize mobile banking bill payment systems to their benefit. Banks have also upgraded their systems to make bill payments hassle-free so that consumers can realize that this facility allows quick, real time bill payment on most utilities, mobile connections, DTH connections, broadband connections and investment services like insurance and mutual funds.

Transaction Security: One of the major concerns with mobile banking has always been data security. Cybercrimes have caused enough panic to deter consumers from trying this novel idea. However, bankers have ensured constant system up-gradation to deliver the highest security to customer’s data. SSL Encryptions are in place to protect information exchange between your mobile phone and the bank’s server. Mobile banking apps make sure that no information is stored on the mobile phone’s internal storage or the SIM card to prevent misuse of your information in case your mobile device is lost or stolen. Also, financial transactions these days use a 2-level authentication system to prevent fraud, OTP being the most common 2nd level authentication. As mobile devices upgrade with the latest technologies like Face ID and Fingerprint readers, banks have also updated their applications to include them for better security.

Service Requests: Submitting account-related service requests has always been a hassle with the traditional branch banking system. Customers were made to run from counter to counter to get the right form or fill in the right details and submit it to the right officer. In spite of all the hassle, the form may end up on the wrong table to be ignored, thus the customer’s service request never fulfilled. That has changed now with mobile banking. Starting from checkbook requests to email updates on your account, it is all available on your mobile banking platform. With constant SMS alerts, you can also keep track of your requests. This has made banking officials more accountable for fulfilling these requests and has served well for the customers in getting their job done.

Investments: Banking is not just about depositing and withdrawing money anymore. It is about managing your money, investing it shrewdly to get better returns. In India, insurance and mutual funds are the go-to investment options for the common man. Banks have started offering that too through mobile banking. Most banks these days have their own product range of insurance & mutual funds. They are now allowing customers to access these products through mobile banking and investing in them instantly. Most banks even offer a free Demat account to attract customers who are involved in the share market. With real-time NAVs and live share prices, mobile banking has garnered a lot of investors using it throughout the day.

Shopping on your mobile: Who doesn’t love to shop? That too when offered with lots of discounts and offers through your bank, on your mobile banking account. Mobile banking taps into the potential of customers who love to shop. It offers them with periodical deals based on their interests and spending habits. They also tie-up with popular brands for special discounts and sales. Rewards Program is offered in most banks encouraging customers to shop more. Mobile banking combines these features to offer a refreshing shopping experience to its customers.

Customizable user interface: As mentioned earlier, mobile banking apps are dynamic and highly customizable. It allows customers to choose their interests and needs to receive targeted product offers and updates. Many banks offer you your spending analysis to enlighten you about changes you need to save more money or invest better. Insurance and investment products that suit your needs better will be advertised on your mobile banking platform. This makes mobile banking more of personal banking experience for users.

Value-Added Services: As with any service provider, Value Added Service is a separate bouquet of benefits given to the customer. Mobile banking is not an exception either. It has the advantage of being in close proximity to the customer more than any other service. This enables banks to send regular feature updates, offers, and deals to the customer. These Value Adds are also customized based on the customer’s account type, their spending habits, and investment style. Some of the value adds include preferred language to operate the app, spending analysis reports, investment offerings, deals on insurance products, upgraded credit card, and more.

Infrastructure cost savings: This feature helps both the bank and the customer. With your bank in your hand, you are not required to visit the bank physically. This saves you time and the hassle of arranging for transport to visit the bank. Especially aged customers can avoid traveling to the bank incurring transport cost and overcoming health challenges. For banks, this means better utilization of their branch square footage. With fewer customers visiting the branch, they are able to manage the crowd better and utilize the extra space to accommodate more staff to ease banking operations.

Different ways to bank on Mobile Banking

Mobile Banking Apps: As soon as we hear Mobile Banking, Apps are the first thing that come to our mind. With hordes of apps swamping the market, it is only prudent to have an app for your bank’s mobile banking service. Almost all banks in India have a mobile banking app. Some examples are:

• YONO from SBI
• iMobile from ICICI
• HDFC Mobile Banking from HDFC Bank
• Axis Mobile from Axis Bank
• PNB ONE from Punjab National Bank
• CentMobile from Central Bank 

Mobile Banking apps have to be downloaded from Google Play, Apple App Store or Windows Store. You have to make sure that your smartphone is compatible with the app before downloading and installing it.

Once you have installed the app, you are usually required to register on the app with the registered mobile number on your account. Different banks have different ways of registering on the app. However, they usually follow a similar protocol for registration:

• You have to download and install the app on your smartphone. 
• Then enter the registered mobile number. The SIM card with the registered mobile number should be inserted in the SIM Slot No.1 generally.
• The app will verify your mobile number and take you to the next step of authentication.
• You will now be required to authenticate your account details either through your Netbanking login, debit card details or credit card details.
• Once the authentication is complete, the bank account details will be displayed for your confirmation.
• Once you confirm the details, you will be allowed to set a login PIN number and another PIN number for transactions. These days, with advanced features on smartphones, fingerprint login and Face ID recognition is also available.
• Once the above steps are completed, you are ready to start using the mobile app.

That is a simple snapshot of the mobile banking app registration process. Many banks require you to be registered for mobile banking. The request for which can be made at an ATM or at the branch directly. Many of the banks do not require any special registration to use mobile banking apps. You just have to make sure that the mobile number you want to use on the app is the one that is linked to your bank account.

Once the registration is completed, it is just a breeze to start using the app and enjoy the various banking services available there.

Some of the services available on a mobile banking app are given below:

SMS Banking

SMS Banking is a simpler version of the mobile banking service. It does not need the internet or a smartphone. It allows many banking services by sending a KEYWORD to a designated phone number.

Benefits of SMS Banking

• It does not require the internet. Your mobile payment plan is enough. 
• It does not require a smartphone. A simple GSM mobile is sufficient to use SMS Banking.
• SMS Banking is available for all customers. It does not require any separate registration. Just that the mobile number from which you are sending the SMS should be the one linked to your bank account.

How does it work?

The customer has to type a KEYWORD and send it as an SMS to the designated number given by the bank for SMS Banking.

Eg: If a customer wants to get his account balance, he might be required to send an SMS like this –

BAL CUSTOMERID PIN [ACCOUNT NUMBER]

The important point to remember is that if the keyword is typed incorrectly, your request will not be processed.

Some of the services available through SMS Banking:

USSD Banking

*99# - National Unified USSD Platform (NUUP) is a platform provided by NPCI (National Payment Corporation of India) which works on the USSD technology. Though similar to SMS Banking, USSD Banking creates a real-time connection with the bank’s server to allow instant transactions. It can be used on any basic mobile phone, removing the need for a smartphone or internet connection.

How to use USSD Banking?

• Dial *99# from your phone. 
• Choose the bank from the list of banks linked to your mobile number
• Enter last 6 digits of your debit card and expiry date separated by single space
• Set a 6-digit UPI PIN
• Your UPI PIN is set and Virtual Payment Address is automatically created.
• Every time you dial the *99# number, you will be given a list of transactions to choose and execute.

Some of the services available on USSD Banking

Missed Call Services

Missed call services are very limited. They mainly give you your bank balance and the last 5 transactions made on your account.

• You have to give a missed call to the designated number from your registered mobile number.
• You will then receive an SMS with the balance amount in your account and the last 5 transactions that were carried out on your account.

This is a free service and does not require much time. It can be done from any mobile. You don’t need a smartphone or internet connection. You just have to give a missed call to the number. It is helpful when you are in a hurry and want to know your account balance.

IMPS – Immediate Mobile Payment Service enables users to transfer funds in real time using a mobile number. You need to have an MMID to transfer money. This facility is available 24x7, even on Sundays and Bank Holidays. This service is brought to you by the National Payments Corporation of India (NPCI) in collaboration with member banks.

UPIs

UPI or Unified Payments Interface allows you to link more than one bank account under a single e-wallet. You can send/receive money using your unique identifiers called 'Virtual Payment Addresses (VPAs)/UPI ID' for e.g. custname@bankname. UPI payments are sent directly from your bank account and hence you do not need a debit card, credit card or the bank account details or IFSC codes.

There is no hassle of adding a beneficiary before transferring money. You can transfer to another UPI recipient using their phone number or UPI ID. You can make bill payments to shopkeepers and merchants by scanning the QR codes at their location.

How do you use an UPI wallet?

UPI Wallets are mobile apps you need to download and install on your mobile phone. Some examples of UPIs are Pockets, SBI Buddy, Google Pay, BHIM DLB UPI and many more. These days, every bank has its own UPI app. You can download the one offered by your bank for convenience.

• You have to register of the UPI app and create your unique VPA (Virtual Payment Address) for your UPI account.
• Once you open the app, it will verify your mobile number and list the banks linked to your mobile number.
• You can select your primary Bank account for the app. You can later add other bank accounts too.
• The app will give an option to create a Virtual Payment Address (VPA)/ UPI ID (example – name@bankname).
• It will then link your Bank account with this UPI ID.
• You are all set. You can start sending or receiving payments secure & instantly

The apps are usually available on Google Play & Apple App Store. Along with transferring money, you can also make bill payments, mobile recharge, book tickets and many more.

Security & Mobile Banking

Banks establish many security measures in place to secure customer information and account sensitive information.

• Mobile banking apps are usually encrypted with high level SSL Encryptions. 
• No information is stored on the mobile device or the SIM card to prevent misuse in case the device is lost or stolen.
• There are multiple levels of authentications while carrying our transactions on mobile apps to prevent fraud.
• Customers should never share their login PIN, CVV, OTP or any other passwords with other people.
• Most of the phones support numeric password lock. Activate one for your phone with a password that is difficult to crack. Avoid using your or any of your family members’ birth or anniversary date as well as house car or phone numbers. (Most mobile and internet banking frauds, as per government records, are committed by the people known to you.)
• If you own a smartphone, install applications that can protect passwords and cannot give access to your banking app even if the phone is stolen.
• Never save your ATM pin or your one-time transaction password (OTP) in the phonebook. If you have to, disguise it as a 10-digit number to make it look like a phone number (with a fake name in the phonebook).
• Never disclose your personal information such as account number, password and PAN card number in text messages.
• Always keep your phone’s Bluetooth turned off and do not accept data from unknown sources. Wi-Fi access in public places might have viruses and malware that can attack phones. Install credible antivirus on the phone to protect it from attacks.
• Delete your ‘bank balance’ messages from your phone immediately after reading.
• Avoid opening unknown Web links/spam emails on your phone. Also avoid downloading applications that do not come from credible sources.
• Before selling or disposing of your phone, do not forget to wipe out all stored data. Do a master reset of the phone that would bring it to the factory condition.
• Change your account passwords often but at random intervals.
• Avoid keeping the same passwords for all your bank accounts.

List of Banks and their mobile banking apps:

Mobile Banking FAQs: