Risks and Benefits Associated With Advanced Mobile Banking Technology

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Mobile banking is a facility which enables customers to initiate and/or perform banking tasks on their mobile phones. This is provided by most of the banks all over the world. Customers can use mobile banking to view their account balance, make instant fund transfers and pay bills, etc.

Mobile banking provides a lot of benefits and advantages with the ease of sending and receiving money worldwide and so on.

However, with this ease comes some risks that you need to take into account when performing some transactions using advanced mobile banking technology. These will form the basis for our discussion in this article.

What is Advanced Mobile Banking Technology?
What Are the Types of Mobile Banking Technology?
What Are The Challenges Associated With Mobile Banking?
Benefits Associated With Advanced Mobile Banking
Risks Associated With Advanced Mobile Banking
Is it Safe to do Mobile Banking?
What Are The Risks of Mobile Banking?
What Are The Benefits of Mobile Banking?
What Are Mobile Banking Advantages and Disadvantages?
Which is Safer Online or Mobile Banking?
What Are The Advantages of Using Online And Mobile Banking?
Can Your Banking App be Hacked?
How Can I Protect my Mobile Banking?
Is SMS Banking Safe?
Which Bank Has The Most Secure Online Banking?
What Are The Main Features of Online And Mobile Banking?
Is There a Difference Between Online Banking and Mobile Banking?

What is Advanced Mobile Banking Technology?

Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet.

Unlike the related internet banking it uses software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis.

Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. Mobile banking is dependent on the availability of an internet or data connection to the mobile device.

Transactions through mobile banking depend on the features of the mobile banking app provided and typically includes obtaining account balances and lists of latest transactions, electronic bill payments, remote check deposits, P2P payments, and funds transfers between a customer’s or another’s accounts.

Some apps also enable copies of statements to be downloaded and sometimes printed at the customer’s premises. Using a mobile banking app increases ease of use, speed, flexibility, and also improves security because it integrates with the user built-in mobile device security mechanisms.

From the bank’s point of view, mobile banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. Mobile banking does not handle transactions involving cash, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits.

Many apps now have a remote deposit option; using the device’s camera to digitally transmit cheques to their financial institution.

Mobile banking differs from mobile payments, which involves the use of a mobile device to pay for goods or services either at the point of sale or remotely, analogously to the use of a debit or credit card to effect an EFTPOS payment.

What Are the Types of Mobile Banking Technology?

The different types of mobile banking technology can be classified by the means a financial institution uses to communicate with customers and allow them access to its services. Most of the technology applications that banks use integrate with smartphones. The three widely available types of mobile banking technology receive and send data via text messaging, web browsers and smartphone applications.

Text Messaging

For those customers who wish to take advantage of mobile banking but do not have a smartphone, text messaging may be their primary option. Banks send customer alerts via text messages. These alerts are available for account balances, sent payments, direct deposits, and a myriad of account activity.

Some banks allow users to sign up for these alerts through their online banking service for free while others charge a fee, in addition to the text messaging fees customers are charged by their cell phone carriers.

Some text messaging may be used to communicate with bank personnel in lieu of e-mail or sending a message through an online web site’s contact center.

By texting certain codes or instructions, bank customers may be able to send donations from their deposit accounts. These donations are sent to charitable organizations or causes with which the bank has an established partnership.

Web Browsers

The second type of mobile banking technology is the mobile web browser. Individuals who own cell phones with web access are able to go to a modified version of the bank’s online site. Full account access is given from the site, allowing users can monitor activity, request account transfers, and make payments.

Accessing the bank’s website from a mobile phone does not usually result in a charge from the bank, but the user will most likely incur data charges from his wireless carrier.

Smartphone Applications

One of the most exciting forms of mobile banking technology is the development of smart phone banking applications. These give users one-touch access to many account features. Similar to the web browser technology, customers have full access to their accounts through a mobile phone application.

Some banks or payment services allow users to take a picture of a check and make a virtual ATM deposit through their phones.

More typical services include account transfers, bill payments and activity monitoring. These services allow customers to conduct banking transactions even if they are not near a computer. They can monitor for fraudulent activity and instantly notify bank personnel if there is an issue.

What Are The Challenges Associated With Mobile Banking?

Despite the benefits of online banking, there is also a number of distinct issues and challenges in the online banking sector. These are highly significant both for banks that offer online banking, but also for their customers, who depend on the banks to operate effectively.

Online banking marketers need to know these challenges so that they can efficiently navigate them.
Here are some of the top issues and challenges in the online banking sector that marketers need to be aware of:

1. Traditional Banking Habits

Despite the benefits of online banking, 49 percent of American adults do not participate in it at all. This happens mainly because traditional banking is what many people are used to and it can take time for them to break habits. So, online banking marketers should focus on ways to convince traditional banking users to start using online banking services.

These marketing efforts should specifically highlight the numerous benefits of online banking. They need to show people how online banking can solve traditional banking problems more efficiently(having to actually go to bank branches, higher fees, etc.)

2. Security

Security is one of the most significant challenges for online banking marketers. This is because, in the past, if a robber was going to steal a person’s bank savings, he or she would have to break into the bank vault, and make a daring escape with the money. This was an extremely difficult prospect and involved a lot of danger and risk.

With online banking, cyber criminals simply need to ascertain certain personal information to break into a person’s account and steal their money. It can be done anonymously, and involves significantly less physical danger than in the past.

In fact, in the U.K. in 2015, roughly 130 million British pounds were stolen from online bank accounts through fraud. So, security is still a major issue for online banks, and their customers.

Marketing professionals in the online banking sector need to focus on demonstrating and explaining the security of online banks to overcome this challenge.

3. Transaction Difficulty

It can be significantly more difficult and time consuming to deposit or withdraw money from an online bank. Not only do online banks often have fewer ATM’s than their traditional counterparts, but it also can simply take longer amounts of time for deposits to be processed and put into a bank account.

For example, it takes roughly 3-5 days for deposits to show up in accounts for PayPal, one of the largest online banks. This is an issue that online banking marketers will most likely struggle with, until online banks speed up their transaction times.

4. Technical Issues

Because online banks rely so heavily on their online platforms, this means that they can generate substantial losses if their systems crash or if there are bugs in their code. A single technical issue that causes a bank to be down for a day could cost the bank millions in losses.

It can also wreak havoc for the bank customers who may not be able to make payments or conduct transactions during the time that the site is down. 54 percent of consumers now use a mobile banking app. So, it is key not just for banks to have their online platforms running smoothly, but also, their mobile apps.

A loss of funds or data due to a crash is something that can be very worrisome for bank customers. So, marketers should prioritize alleviating this worry by explaining how account funds will not be lost if technical issues occur.

5. Small Budgets

Many startups have to operate on shoestring marketing budgets before they grow to a larger size. Obviously this can be a major challenge. If your marketing budget is small, then you need to focus on the priority expenses.

The inbound marketing strategies of creating a search engine optimized website, making accounts for all of the biggest social media networks (Facebook, LinkedIn, Twitter, etc) and starting a blog should all be prioritized.

On your website, you should also have an option to allow visitors to join your mailing list. Furthermore, a good PPC campaign can be a very good investment for your company. In fact, businesses make an average of $3 on every $1.60 they spend on Adwords.

Online banking is one of the most significant developments for the banking industry in its long history. However, despite the many benefits that online banking provides to customers, there are also a number of major concerns and challenges for marketers in the online banking sector.

Traditional banking habits, security, technical issues, transaction difficulties, and small marketing budgets are all major challenges that online banking marketers will have to reconcile if they are to succeed in this field.

However, demand for this industry continues to be very strong. So it is likely that online banks will only grow more advanced and successful as they strive to resolve their marketing challenges.

Benefits Associated With Advanced Mobile Banking

The ability to access your financial records anytime, anywhere makes mobile banking appealing. You can deposit checks, send someone else money and monitor transaction history while standing in a grocery line. Those actions give you a safety advantage, too. In monitoring your account more often, you’ll have a greater chance to discover fraud more quickly or spot times when you may need to slow down on spending.

1. Accessibility

Part of the appeal is the ability to access your account on a mobile device whenever you wish. Unlike a bank branch, you can use a mobile banking app to check in with your account 24 hours, seven days a week with some exceptions, such as planned maintenance updates.

2. Convenience

It also provides you a way to save time. Consider mobile check deposit, which is now mainstream within your mobile banking app. The feature lets you deposit a check without requiring you to go anywhere.

Nowadays, the best mobile banking apps are evolving to help you optimize your money in all sorts of newer ways, too.

In recent months, a number of banks have been going one step further by providing money guidance via their mobile apps so you can do less thinking.

For example, Ally Bank has been recently testing a feature to help its checking account customers organize their digital money and optimize how much money they can regularly save — a particularly relevant feature considering only four in 10 U.S. adults would cover the cost of a $1,000 car repair or emergency room visit using their savings, according to Bankrate’s January Financial Security Index survey.

U.S. Bank also messages customers when its algorithms see an opportunity to save money, or alternatively, forecasts when they are at risk of overdrafting an account.

3. Paying IOUs

It’s also easy to pay back a friend or family member when you are logged into your mobile banking app.

Banks across the country partner with Zelle so that you can send someone money in minutes through your mobile banking app rather than give them physical cash. You will only need to know your recipient’s email address or phone number to send them money. If your bank doesn’t offer Zelle, it will usually let you send a transfer to someone else’s bank account if you know their routing and account number.

4. Good security

Banks are in the business of guarding your assets — including your interactions on their mobile apps.

Of course, nothing is foolproof. But there are steps you can take to step up security precautions if you’re worried about mobile banking security.

While you may still use a username and password to login to a mobile banking app, your bank may let you enroll in added safety measures. You could, for example, enroll in multi-factor authentication where you need two (or more) kinds of verification to prove that it’s really you.

For example, a bank could send a code to your phone for money transfers above a certain amount. In order for the payment to go through, you would need to enter the code in addition to logging in through the app to help verify you are who you say you are.

These days, mobile devices — and some bank apps — will let you login by scanning your face or fingerprint as yet another way to protect your digital bank account.

That also means if your phone goes missing, you will have an added lock to keep fraudsters out. You can also disable your mobile phone remotely.

5. Control

Think of a mobile banking app as a remote control for your money. The app lets you deposit a check and send someone money whenever you wish.

The controls are getting more advanced, too.

A growing number of banks, like Wells Fargo, Ally Bank and Bank of America, let you use your mobile banking app to turn your debit or credit card off if it goes missing or is stolen. It’s a nice feature to help you feel instantly secure in a moment of panic — calling a 1-800 number is not required if you want to turn your card back on, either.

Some banks have already extended the use case of the card control feature. At Wells Fargo, customers are able to see their recurring payments connected to their payment card in addition to turning their cards on and off under one hub. It’s called Control Tower and it ought to help you when you’re in a life transition, like when you’re moving to a new city and want to make sure you aren’t paying for services you no longer use.

“As a customer, you can see where you have cards stored, where you have subscriptions, where you potentially have monthly payments that you aren’t using [that] you can get rid of,” says Stephen Greer, a senior analyst focused on retail banking at Celent.

You may also want to enroll in something bank apps have long had: mobile alerts for low balances and when your transactions post. Some banks also let you set up travel alerts on their apps.

Risks Associated With Advanced Mobile Banking

Since the use of mobile phones has greatly increased over the past few years, banks and financial institutions have set up mobile banking systems to allow customers to withdraw, transfer and deposit money to make banking more convenient and easier to access. Although mobile banking may offer benefits, there are also risks involved.

Unsecure Information

There are some risks involved in mobile banking. Accessing financial services through mobile banking entails submitting personal information through a text messaging platform.

Hackers can try to access those messages through unsecured Wi-Fi hot spots. Other risks involve the bank not investing in enough encryption security of its technology. This would leave the customer’s personal information open for interception.

Regulatory Issues

Banking institutions employ telecom agents to manage their mobile banking services. The use of independent or franchised telecom agents makes it difficult for a country’s central bank to regulate banking operations to have a universal set of standards.

This means that different banks can establish different mobile banking rules, use substandard banking security software and charge high fees for mobile banking. These issues can cause customer confusion.

Viruses

Banking institutions make sure that their channels are protected by a secure layer to ensure the safety of their customers’ information. However, some mobile phones are very vulnerable to viruses such as Trojans. These viruses provide hackers the opportunity to access your banking information through your mobile phone.

Security

Some banks offer more security for financial services through their branches vs. their mobile banking platforms. Some banks do not offer mobile banking services due to implementation costs or simply the risks associated with investing in the platform.

Other risks include loss of a customer’s mobile device. Customers who lose or have their mobile phone stolen risk losing their financial information. This opens up the customer to the possibility of fraud.

Is it Safe to do Mobile Banking?

Is mobile banking safe? Well, if you look at it critically, it certainly doesn’t seem so. After all, is it a good idea to use the same device for watching those funny video and carrying out financial operations?

So, how safe is mobile banking? It all depends on how cautious and well-informed you are.

Hackers exploit weak passwords and vulnerabilities of public Wi-Fi to infect devices with malware. However, most mobile banking attacks happen through social engineering – when users are manipulated to give up their usernames and passwords to hackers, scammers and other cybercriminals.

Social engineering techniques range from phone calls, malware links, phishing websites to more advanced (and less frequent) attacks like phony banking apps. It’s much easier to fall for a scam than you think, and the best defense against them is knowledge. Here are some tips for safe mobile banking:

1. Don’t lose your phone

The biggest security threat of your mobile phone is also its greatest asset – its size. Phones are small, handy, beautiful, and easy to lose.

Losing a phone is as heartbreaking as losing a part of yourself, but it gets even worse. If someone who found or stole your phone uses it to access your bank account, you could lose much more.

A strong password (made of a random string of lowercase and uppercase letters, numbers, and symbols, at least six characters long) is the most secure way to lock your phone.

If you are afraid to forget the password, use a PIN key (something more difficult and unique than 1111) or a pattern lock with biometric identification, which can be:

Facial recognition – convenient but not secure, since it can sometimes be bypassed with a photograph.
Iris scanning – the pattern of your iris is unique and can’t be replicated with a simple photo.
Fingerprints – low false-acceptance rates, perfect if you don’t often wear gloves.

Iris scanning or fingerprint identification with a strong PIN will grant you easy and secure access to your phone.

Never leave your phone unattended. Install an anti-theft and recovery app that can locate your phone, lock it remotely, or even wipe your data if it gets stolen.

As a final layer of security, always log out from your banking app after you finish your operations.

2. Use the official banking app, not the browser

The second biggest security threat concerns the banking app. If you aren’t careful, you could download a fake banking app created by scammers to break into your account.

Make sure your bank created or approves of the app you are downloading. Get it from their website. Moreover, do not use mobile browsers to log in to your bank account – they are less secure than bank-sanctioned apps.

Finaly, before downloading any app to your phone, you should research the developer, read the reviews, check the app rating on Google Play or App Store. Poorly designed or malicious third-party apps could use your username and password to access your bank account and empty or monitor it.

3. Don’t just follow any link you see

You pick up your phone, open up the email app, and notice that your bank sent you an announcement about a new service. The letter ends, “You can save up to a thousand dollars per year! For more details, follow this link.” You click it, go to the landing page, log in, but some error occurs, and you are disconnected from the website.

You just gave your username and password to a scammer.

The email you got was not from your bank, but from scammers pretending to be your bank. You would have noticed it had you checked the sender details more carefully. The landing page was actually a clone made to look like your bank’s website. When you entered your password, you handed your data straight to cybercriminals.

Always check the URL and domain of any link you are about to click on, especially if it claims to be from your bank. If it looks suspicious – avoid it. The same applies to SMS messages or messages and links on social media.

Never send your username or password via email, social media or text message. If you did – change the password immediately.

4. Don’t use mobile banking on public Wi-Fi

Anyone on a public Wi-Fi network is in danger of a security breach. Most of these networks lack basic security measures and have poor router configurations and weak passwords. Mobile banking or any other activity that exposes your sensitive data should never be done on public Wi-Fi.

If a hacker is monitoring the public Wi-Fi or hotspot you are using, they could intercept the data being transferred to and from your phone and use it to access your banking account.

If you are scrolling in a library or a coffee shop and you need to access your bank account, use your cellular network instead. It’s not perfect, but it’s better than public Wi-Fi.

Better yet, turn on a VPN and use public Wi-Fi without the risk of compromising your personal data. NordVPN encrypts your web traffic, making it extraordinarily difficult to intercept and decipher.

What Are The Risks of Mobile Banking?

Here are seven security risks you definitely want to avoid.

1. Using a fake mobile banking app

Some scammers have created fake mobile bank apps to get you to enter your password and other private details. Once they have that information, they can turn around and use it to access your real bank account and take out your money.

Always read reviews and make sure you’re dealing with the real app for your bank before downloading one or trying to log in. You can also try going to your bank’s website and clicking on the link to the download page for its mobile app to make sure you’re using the right one.

2. Using your mobile banking app on public Wi-Fi

Public Wi-Fi might enable you to save your monthly cell phone data, but it also makes it much easier for hackers to access your phone and see what you’re doing.

It is possible for them to hack into your phone when you’re using cellular data, too, but that is much harder to do. Always stick to cellular data if you need to access your financial accounts in public, or better yet, wait until you’re on a private Wi-Fi network to log into your bank account.

3. Not updating your phone’s operating system or apps

Installing updates can be a pain and can keep you from accessing your phone or apps for a while. However, you should always do it anyway. Some of these updates are important security patches that fix flaws in an app that might let hackers more easily access your data.

Outdated software is also easier to hack in general. Whenever your phone notifies you about an update, install it as soon as it’s feasible, especially if it’s for your mobile banking app.

4. Storing passwords and PINs on your phone

You might decide to keep a note on your phone with your bank account password or PIN if you’re prone to forgetting it, but this is dangerous, too.

If you lose your phone and a would-be thief finds it, they can easily gain access to your financial accounts, and you probably won’t even notice until your money is already gone. Try to memorize your passwords, especially your bank account password, so you don’t need to store them on your phone or computer.

5. Using an easy password

The days when “Password” was considered a secure password are long behind us — if they ever existed at all. Fortunately, most online accounts, including mobile banking apps, no longer allow you to use such simplistic passwords.

You must choose something that has a mix of capital and lowercase letters with some numbers and symbols thrown in. These types of passwords are more difficult to hack, so using one of them helps keep your account secure.

You should also use different passwords for all of your online accounts — or at least use a different password for your mobile banking app — so that hackers who gain access to one of your online accounts can’t break into all of them. Changing your password every couple of months, even if you don’t need to, can also keep hackers from accessing your banking information.

6. Not password protecting your phone

Modern smartphones let you enter a passcode or open your phone with a fingerprint scanner so that no one else can access your phone without your permission.

This extra layer of security can prevent others from hacking into your mobile banking account or gaining access to other personal information stored on your phone that might help them answer your bank’s security questions. Take advantage of these security features to keep your bank account and other personal information protected.

7. Not signing up for security alerts

Security alerts are messages sent to your phone or email that tell you about new or suspicious activity regarding your bank account. It might be a login from a new device or a purchase that seems suspicious.

These alerts can help you quickly identify when your identity has been compromised so you can take action to stop the thief from draining your account. Enroll in these alerts if your bank offers them and check your bank accounts regularly for signs of suspicious activity.

Mobile banking apps are really useful, and they’re not going away anytime soon. But they’re also not immune to attack. Avoiding the seven above mistakes is crucial if you want your bank account to remain private.

What Are The Benefits of Mobile Banking?

Coronavirus has shifted much of our everyday lives online, which makes mobile banking even more beneficial to people who’d prefer not to visit a physical location right now. Simply download your bank’s mobile app for iOS or Android and you’ll have your credit union in the palm of your hand, anywhere you are.

The benefits of mobile banking include:

Convenience: Check account balances, find ATM locations, transfer funds, and even deposit checks.
Timesaving: No longer need to visit a credit union location to perform the everyday tasks mentioned above.
Bank on the go: You don’t even need a desktop computer. Bank from the train, airport, or backseat of a cab.
Easy to monitor: Stay on top of daily transactions to protect against fraud.
Good for budgeting: With access to your money at your fingertips, you can check your balance before you spend and make sure you’re on track to meet budgeting goals.
Mobile Deposit: Depositing checks is no longer a hassle. Simply use your smartphone camera and mobile app to take a picture of the front and back. Deposit processing times are the same as if you brought the check to a branch.
Apply for a loan: Need a credit card, personal loan, or car loan? No need to go to the branch when you can apply for financing through the mobile app.
No cost to you: Mobile banking is a free service for all Palisades Credit Union customers.

What Are Mobile Banking Advantages and Disadvantages?

Advantages

In Mobile banking, the user can transfer funds from your bank account to another bank account with a smartphone just with the help of the internet, from anywhere to everywhere. It is available for 24 hours and an easy and convenient mode for many Mobile users in rural areas.

Mobile Banking is said to be more secure and risk-free than online Internet Banking. With the help of Mobile, a Banking user can transfer funds, and pay bills, checking account balance, study your recent transaction, block your ATM card, etc. Mobile Banking is cost-effective, and Banks offer this service at less cost to the customers.

Money transfer transactions can end when banks are open, but you can check your account balance or get an account statement regardless of time or day. Your bank account and personal data are completely secure if you use mobile banking services.

The bank will provide you with a set of credentials that you can use to log into your account and make transactions. This connection information is transmitted to you securely and since you are the only one who knows your username and password, your account is always secure.

Most banks allow you to activate two-step verification where you can only make bank transactions if you enter the one-time password (OTP) sent to your registered mobile phone number.

Disadvantages

Mobile Banking is not available on all mobile phone. Sometimes, it requires you to install apps on your phone to use the Mobile Banking feature which is available on the high-end smartphone. If the customer does not have a smartphone than the use of Mobile Banking becomes limited.

A transaction like transfer of funds is only available on high-end phones. Regular use of Mobile Banking may lead to extra charges levied by the bank for providing the service. Mobile banking users are at risk of getting fake SMS messages and scams. The loss of a mobile customer device often means that criminals can gain access to your mobile banking PIN and other sensitive information.

Risks associated with mobile banking

Apart from this, there are the usual risks associated with mobile banking that could include hacking. However, one needs to be careful and not share the password, just as you apply the same principle to the desktop. It is believed that the bulk of the banking frauds take place through known relatives.

So be careful when you share your mobile banking password. In fact, we strongly suggest that you have a screen lock for your mobile whereby nobody would be able to open the same.

Which is Safer Online or Mobile Banking?

Mobile banking and online banking are closely related to each other, but some definite points distinguish between the two. Many of the activities performed through mobile banking are similar to online banking.

The basic difference between the two is that Mobile banking is done using a smartphone or a tablet, whereas online banking uses a desktop or a laptop
A customer is required to download the particular application of a bank to use the mobile banking facilities whereas, for online banking, the customer requires to open the particular website of the bank
It is also worth noting that a person can use online banking on the smartphone as well

Here are some key differences between mobile and online banking-

Concept

Online banking- Internet banking allows customers to perform financial transactions electronically with the use of a laptop or computer with the internet.
Mobile banking- Mobile banking is an extension of internet banking in which banking services are accessed by users with a mobile phone or tablet.

Mode of usage

Online banking- It uses the bank’s official website for net banking transactions
Mobile banking- It uses short message services (SMS), mobile application or the internet

Device

Online banking- Computer or laptop
Mobile banking- Mobile phone or tablets

Uses

Online banking- Net banking or internet banking provides all the services available at a bank branch. It also covers some services such as utility bill payments, which are available on mobile banking and some additional services too.
Mobile banking- Mobile banking provides access to limited services. As compared to net banking, it does not provide many services for the users.

Fund transfer

Online banking- Funds can be transferred using internet banking via NEFT or RTGS
Mobile banking- Funds can be transferred using mobile banking via IMPS, RTGS, or NEFT

What Are The Advantages of Using Online And Mobile Banking?

Here are some of the benefits of online and mobile banking, plus tips to make the experience work best for you.

Get Immediate Access to Your Account

With online and mobile banking, you can log in and check the details of your bank accounts at any time. Checking your accounts enables you to see your balance and pending transactions at a glance, so that you know for sure if you can pay for something without overdrawing your account.

You can review your banking statements and recent transaction history in real time. This is an excellent way to monitor transactions posted to your account – no matter where you are. You can set up account alerts to notify you of account activity, so you can quickly address any suspicious transactions.

You can also perform many of the other tasks that you would do at a physical branch. These include updating your account preferences and profile information, depositing a check using your smartphone, paying bills, locking or unlocking your credit cards, depositing checks and transferring money from one account to another, and even sending money with Zelle^®.

Deposit Your Checks from Anywhere

The majority of mobile banking apps allow you to deposit physical checks, saving you a trip to your local bank branch or ATM.

The process is simple: endorse the check as usual and add any extra information that may be required – typically a note stating that it’s for a mobile deposit. Then use the banking app to snap a picture of both sides of the check, input key check data and wait for it to process. Remember to keep the physical check for a couple of weeks in case there are any issues.

If the majority of your trips to the bank are to deposit checks, you can easily see just how much time mobile deposits can save. However, note that there are often caps on how much you can deposit this way within a certain time period, so be sure to check with your bank.

Transfer Funds Between Accounts Fast

Online and mobile banking also allow you to transfer funds between different accounts held at your bank. This is particularly useful if you notice that your account balance is low and you have automatic payments or a recent purchase that may overdraw your account.

If you want to send money to people you know and trust, you can do so with Zelle, which enables funds to be sent and received from one bank account in the U.S. to another, using only a recipient’s email address or U.S. mobile number.

Protecting Your Financial Information

Most banks use encryption through their mobile apps that will protect your privacy, financial information and identity. In order to access your mobile banking app, you’ll have to create a login.

Some banks have even created extra layers of protection, such as a separate PIN number. You may also have the option of using a fingerprint sensor for an added layer of security before you can log in.

Can Your Banking App be Hacked?

Whenever there’s a reason for fear, or when there’s upheaval, there’s a good chance that someone out there will try to take advantage of the situation.

One example is the rise in cybersecurity threats against mobile banking apps. The FBI recently warned that the coronavirus pandemic is leading to more people using banking apps rather than going into branches — and this could be fodder for scammers and hackers.

Here’s what you need to know about the possibility of your mobile app being hacked.

There are two main possibilities when it comes to stealing your banking information via your bank app:

Trojan: This is malicious code on your actual device that you might pick up when you download another app, such as a game or tool. When you open your banking app, the malicious code creates a fake login page for the bank app and steals your information. Now the fraudster has access to your bank account.
Fake mobile banking app: Another concern is that some cybercriminals create fake apps. You download what you think is your bank’s app, but it’s a fake — and steals your information.

There’s another possibility where a hacker doesn’t try to fake a mobile banking app or put malicious code on your device – it’s when you use public WiFi. When your device is connected to the internet, some apps might run in the background, sending data along with it.

Even if you aren’t using your banking app, this could give hackers the ability to see frequently used usernames or other sensitive information. And, if you use a WiFi network that has been hacked, the fraudsters can send traffic to fake sites instead of real ones, leading you to the same problems listed above.

In all these cases, your sensitive information is taken and used against you. You could see your bank account attacked and end up with problems in the long run. Even if you eventually get your money back, the hassle involved and other associated problems are no small matter.

How Can I Protect my Mobile Banking?

Below are a few extra tips for keeping your financial information safe when using a banking app.

Set Auto-Lock on Your Phone: All mobile phones have a way to auto-lock with password protection after a certain amount of time. Setting the auto-lock to engage after a short period of time is a smart way to protect your sensitive financial information if you accidentally leave your phone somewhere or if it’s stolen.

Two-Factor Authentication: This is a technique that sends a code to your mobile phone via SMS (or text message) as an added security precaution. After receiving the code, you type it into the device, which then registers the device.

Security in Public Places: If you find yourself using public Wi-Fi often, use a Virtual Private Network (VPN) or stick to your cellular data when accessing your bank accounts. Public Wi-Fi is often unsecured, meaning anyone with the right skill set can read your sensitive information.

If Your Device Is Lost or Stolen: Use “Find My iPhone” on Apple products or a data wipe app to protect your personal information remotely. Also, if you’re selling or trading in your phone, make sure you wipe all your data as well.

Turn on Your Account Activity Alerts: Sign up to receive alerts via your mobile app with real-time notifications regarding your bank account activity.

Use Strong Passwords: A strong password consists of at least eight characters that are a combination of letters, numbers and symbols.

Keep Your Phone up to Date: Ensure that your phone is always up to date with the latest software and updates on banking apps.

Is SMS Banking Safe?

SMS-based mobile banking is the easiest way to transact money matters. Unlike Net banking, it doesn’t require GPRS or data connectivity, or a high-end phone. All you need to do is send a text message with the specific keywords to a bank’s predefined banking number.

Instantly, the bank reverts to the relevant information. Different banks offer different services but the most commonly available are balance inquiry, cheque status inquiry, cheque book request, stop cheque request, and mobile-to-mobile fund transfer.

Every bank has a different keyword and text number. In case the wrong keyword, account number, or MPIN are entered, the service is not processed further. Here, it is always advisable to delete all messages sent and received that carry any information about the bank account.

Which Bank Has The Most Secure Online Banking?

Here’s how the banks tested by Which? shaped up in these various elements (scored out of five), the weighting of each of these categories, and their overall score, as a percentage.

Bank	Login (30%)	Encryption (40%)	Account management (15%)	Navigation and logout (15%)	Overall test score
Starling Bank	5/5	5/5	5/5	4/5	85%
Barclays	5/5	5/5	4/5	3/5	78%
First Direct	5/5	5/5	4/5	2/5	78%
HSBC	5/5	5/5	4/5	3/5	78%
NatWest/RBS	5/5	4/5	4/5	5/5	76%
Nationwide	4/5	4/5	4/5	4/5	74%
Metro Bank	4/5	4/5	5/5	5/5	71%
Virgin Money	4/5	5/5	2/5	3/5	68%
Lloyds/Halifax/Bank of Scotland	3/5	5/5	4/5	3/5	67%
Co-operative Bank	2/5	5/5	4/5	3/5	65%
Santander	3/5	5/5	2/5	2/5	62%
TSB	2/5	4/5	4/5	4/5	51%
Tesco Bank	2/5	4/5	2/5	2/5	46%

As you can see, Starling Bank is clearly setting the bar for online safety incredibly high.

The testers reported nothing concerning about its recently launched website, though noted this was partly due to limited functionality ‒ users can only change sensitive data via the app.

While Barclays, HSBC and first direct all shared second spot, Which noted each had room for improvement.

For example, with Barclays, testers only needed basic details in order to recover a membership number, and could log in from two different computer systems at the same time without being ejected from one.

Meanwhile, first direct was criticised for having basic pre-set security questions for forgotten passwords, with no alerts sent when passwords are changed or new payees are added.

Things are far more concerning at the bottom of the table, and not just because of the presence of so many major banking names.

Tesco Bank came bottom, with researchers finding multiple security headers missing from its webpages, while users were able to use the forward/back button to leave a session and then return to it.

TSB was found to have serious issues, including its login process which Which? argued does not meet new regulations introduced last March.

As a result, the bank has been reported to the FCA.

What Are The Main Features of Online And Mobile Banking?

While basic transactional features such as funds transfer and balance updates have been around for some time, today’s Mobile Banking experience offers some advanced features too. Here are some of them:

Customization: You don’t have to sift through pages of links to find what you are looking for. Contemporary banking apps allow customization of the menu so you can easily access your frequently used services.
Investments: Not just banking, your mobile app now allows you to make Term Deposits, Mutual Fund investments, invest in IPOs, and manage your Demat holdings, all in one place.
Bill payment: No need to physically visit the outlets or download specific apps for different services. Most of your utility bills, mobile, and DTH connections can be paid from your banking app. Use the HDFC Bank SmartPay option to issue standing instructions on your HDFC Bank Credit Card and enjoy a free credit period, earn Reward Points, and get 5% CashBack on all transactions for the first year. Customers who have prepaid connections can use the recharge via a missed call option. They can activate the option for family and friends too through the bank account.
Effective budgeting: You need the right tools for effective budgeting. What if you had everything you needed to stay on top of your expenses in just one place? HDFC Bank Mobile Banking App lets you track all your financial expenses in one place. All of your income, expenses, and savings categorized and managed from a single place for better budgeting.
Alerts: Register for InstaAlerts and stay on top of all your financial activities, available right at your fingertips. Other than regular transaction banking, you can set alerts for bill payments and expense tracking via your banking app. Customize your alerts, so that you only receive an intimation for what is relevant to you whether it is the sweet ring of a salary credit or the deadline for a bill payment!
Account history: No need to have your statement updated physically at a branch anymore. Access your account history through your Mobile Banking app with a single click. With the mPassbook you can access your account history anytime and anywhere, even without data connectivity! The tagging feature allows you to add personalized remarks for any transaction, search, filter, and categorize all transactions.
Online shopping: The HDFC Bank MobileBanking App helps you compare prices across service providers, and allows you to avail of discounts and CashBack, and redeem loyalty points. Collaborations with the biggest and best shopping portals HDFC Bank customers to pay bills, shop online, book air travel, and hotel accommodation on a single exclusive platform.
Convenient payment: Link your Debit or Credit Card with HDFC Bank PayZapp and pay for your mobile, DTH recharge, utility bills, groceries, movie tickets, shopping, and more. You can pay through your linked cards, or UPI through your linked bank account. You can even simply scan the BHARAT QR code and pay. The best part? You not only enjoy the security benefits offered by HDFC Bank but also end up saving on payments with PayZapp with various Cashback offers.
Feedback and redressal: Any complaints and queries can be addressed and resolved quickly, right in the banking app.
InstaAccount – Open your bank account with an app

Is There a Difference Between Online Banking and Mobile Banking?

With online banking, users get to manage a host of financial and non-financial transactions from the comfort of their home through computer or laptop.

But with Mobile Banking, this comfort has moved a step ahead as it allows users to conduct transactions anywhere and anytime right from their mobile phone.

But, what is Mobile Banking? Isn’t it similar to online banking? No, online banking and mobile banking have some important differences like-

1. The functionality of online and mobile banking

The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet.

Many banks nowadays have their mobile apps for mobile banking. Although, you need to have an internet connection to use such mobile banking apps; banks also offer mobile banking through SMS.

So, even if you have a very basic mobile and not a smartphone, you will still be able to use some features of mobile banking through SMS.

2. Transaction Facilities

The next difference between Mobile Banking and Internet Banking is the transaction facilities they offer. Generally, the online portal of a bank through which Internet Banking transactions are conducted provide more facilities.

From checking account statement, transferring funds, ordering a new cheque book, to opening new FD, you can do a host of transactions with online banking.

But banking is limited when compared to online banking, especially when you are not using the mobile app of your bank. However, bank apps now do offer several facilities like fund transfer, ordering cheque book, checking account statement, locate ATM, and more.

3. Access to online banking portal and Mobile Banking app

To use online banking on your computer or laptop, you are not required to download any particular software or program. You can use any browser to access the Internet Banking website of your bank.

Read Also: Payment Organisations

But most of the features of mobile banking can only be used with the help of a mobile app. Depending on whether you use an Android or iOS device, you will have to download the appropriate app of your bank to use this facility.

4. Opening an online banking and mobile banking account

If you know what is Internet Banking and use this facility, you might already have a username and password to log in to your bank’s online banking portal.

However, your online banking credentials cannot be used to log in to your bank’s mobile app. You will have to apply for Mobile Banking separately.

Your bank will then send you a password for the same. Most banks allow you to apply for Mobile Banking through their online banking portal.

5. Push notifications

The last significant difference between the two is push notifications. Just like the other apps you use on your smartphone, the Mobile Banking app also sends push notifications.

Many of these notifications consist of amazing deals and discounts for the users. So, you are not required to log in to the app to get these offers.

However, this feature is not available with Internet Banking. You will have to visit the online banking portal of your bank to check out the latest offers or subscribe to the e-mail newsletter.

Both Online Banking and Mobile Banking are ways to use digital banking services. Both are highly convenient, secure, and help you save a lot of time.

Check the features of Internet Banking and Mobile Banking offered by your bank to start using these digital facilities as soon as possible and experience banking in an entirely new way.

Conclusion

As we have seen in this article, comfort and ease will come with some risk, the same can be said about advanced mobile banking technology. You need to be careful on the mobile as well, though it brings lesser risk.