With the advent of mobile banking, people can now manage their finances on the go. This convenience comes with a few risks, though, and it’s important to be aware of both the pros and cons of mobile banking before you start using it.
What is mobile banking?
Mobile banking is a type of electronic banking that allows users to access financial services through a mobile device such as a smartphone or tablet. With mobile banking, users can check their balances, make transfers, and even pay bills using the mobile banking app. Mobile banking also gives customers real-time access to their accounts, allowing them to monitor them no matter where they are. Setting up notifications and alerts is also possible so customers are informed of any financial changes immediately.
What do you need to know before using mobile banking?
Before using mobile banking, it’s important to understand the risks and use the app responsibly. Create a strong password; never use public Wi-Fi when accessing your accounts. Additionally, ensure your mobile device is secure and up-to-date with the latest security patches. It’s also important to monitor your accounts for any suspicious activity.
If you notice any unusual transactions, notify your bank immediately. Additionally, ensure only you have access to your account information since sharing your financial information can be a security breach.
Pros of Mobile Banking
1. Time Efficiency
Mobile banking makes it possible to pay your bills online, which means there is no need to worry about physical checks getting lost. Most banks offer the option of setting up a payee, and after filling in all the required information, such as credit card information, the receiver, and the amount, you’re good to go. After that, you’ll choose just one paying option when prompted to pay any bills.
2. Monitoring Transactions
Mobile banking allows you to manage and monitor all financial transactions. You can monitor each of your bank accounts and prevent fraudulent activities if they occur. You can do all this by logging into the mobile banking app.
3. Enhanced Security
Money matters are usually sensitive. Security is an important aspect of the bank business, and it usually applies to guarding your interactions on mobile banking apps and your assets.
Fortunately, mobile banking apps are considered secure since they require multi-factor authentication such that your phone number, ID, mail, face scan, or fingerprint is required. Additionally, such forms of authentication are also needed when completing a transaction regardless of the amount of money you plan on sending. Such measures are taken since possibilities of intended harm may arise.
4. Managing Funds
A mobile banking app is more like a remote control for your money. The mobile banking application will allow you to perform various tasks, such as checking your bank account balance and sending someone money regardless of location and time. If you find a lost credit card, it can be turned back on easily.
Additionally, as a client, you can see and manage where your cards are stored. Furthermore, you can manage monthly subscriptions and cancel the ones you’re not using. Another advantage is that you can access your bank accounts 24/7. You can also track your spending.
5. Improved Customer Service
In the banking sector, the relationship with the consumer is important. By maintaining a respectful, healthy, and good relationship with each client, there is a high likelihood that a financial institution can keep them both while attracting new ones. Since mobile banking is available 24/7, people who cannot physically visit financial institutions are at an advantage.
6. Workload Capacity
Thanks to mobile banking, the human factor is no longer required for various work operations. It also improves quality and productivity. Clients can also fix multiple issues on their own through mobile banking apps.
7. Added Services
Mobile banking offers additional services in comparison to traditional financial institutions. The mobile banking apps allow you to control funds remotely, activate a new debit or credit card, and deposit a check.
8. Easily Detect Fraud
It is easy to detect account fraud faster if your bank account is linked to your mobile banking app. You can log in at any moment and turn on notifications that will allow you to receive transaction alerts. That way, you can easily notice when something unusual occurs.
The Cons of Mobile Banking
1) Security
Financial institutions strive to develop the most secure and safest system; however, they cannot. Research has been carried out, and there is the issue of mobile banking apps lacking sufficient code protection.
2) Extra Charges
Mobile banking apps attract extra charges for different bank services. Features such as insurance usually charge extra fees, which means the convenience of mobile banking does come at a cost.
3) Tech Issues
Some limitations revolving around mobile banking are because of the bugs that usually occur during the development stage. In some instances, the mobile applications fail to launch. Financial institutions should find and fix all these issues on time to ensure each client is satisfied.
How to keep your information safe when using mobile banking
To ensure your financial information stays safe while mobile banking, keep the following tips in mind:
• Always create a strong password.
• Make sure to log out of your mobile banking app after each session.
• Never use public Wi-Fi when accessing your account.
• Ensuring your device is updated with the latest security patches.
• Monitor your accounts for any suspicious activity.
• Only you should have access to your financial information.
By following these tips, you can ensure your mobile banking experience is safe and secure.
Conclusion
Mobile banking can offer tremendous convenience to those on the go, but it’s important to ensure you take the necessary precautions. Following the tips outlined in this article, you can safely and securely manage your finances from your mobile device safely and securely. Also, by understanding the pros and cons of mobile banking, you can easily determine whether you should use this service.
