What is meant by mobile banking? Everything explained

Mobile banking what is it all about?

If you have a bank account or you’re in the financial sector, you will definitely come across the term mobile banking especially since it was introduced in the year 2001.

As stand right now, mobile banking has added a lot of value in the banking system or the financial sector. In this article I will explain all you need to know about mobile banking and why you should enroll today but only if you have a bank account.

What is meant by mobile banking

Mobile banking is a banking services offered by banks and non bank financial institutions, which provides the means of banking services or financial transactions by simply using a mobile phone.

It was stated that the term mobile banking was introduced in 2001 in the Philippines when two operators, Globe and Smart, introduced their own domestic payment plan. Right now mobile banking has been adopted by all banking and financial sectors in the world today.

If you are a bank customer and you don’t have a mobile banking account, I’m telling you that you are missing a lot of financial services feature. For me it is a must that all bank customers should have a mobile banking account as it is one of the best means of money transfer and checking of bank account balance.

Having explained what is meant by mobile banking, let me explain the features and benefits of having a mobile banking account.

Features and benefits of mobile banking

Below are the features and benefits of mobile banking;

• Very convenient to the user as you can perform bank transactions right inside your home, office or work place without going to the bank.
• Mobile banking is 24/7 available to the user.
• Through mobile banking, you can transfer money, check your account balance, check your bank account information, request for a cheque, debit card, or even block your bank account.
• Through mobile banking you can view your account statement at any given time.
• Through mobile banking you can request for your bank account to be closed or reactivate a dormant account.
• Through mobile banking you can change your debit card pin at any given time or even request for a bank loan.

These are some of the features and benefits of having a mobile banking account.

These features vary from bank to bank or from financial institution to one another depending on the type of services they give to their customers.

What are the types of mobile banking?

The types of mobile banking are mobile banking app, mobile ussd code and the sms banking. 

The types of mobile banking differ from country to country, but here in this country we have mobile banking app, mobile ussd code and the sms banking as the types of mobile banking.

Now let me explain them one after the other.

1. Mobile banking app

Mobile banking app is a very popular and common type of mobile banking available on both android and ios.

This type of mobile banking requires internet connection like cellular data or Wi-Fi connection.

Almost all countries of the world do offer mobile banking app to their customers and which they can seamlessly conduct financial transactions by simply using the mobile banking app.

Before a bank customer can use the app, he or she will have to register using it’s bank account number and other information. After the registration is done and dusted, the bank customer can start using the app for it’s financial transactions.

Mobile banking app is pretty much available on both android and ios which you can download and install from the Google play store and the Apple app store.

Is there any charges while using mobile banking app?

The answer is no.

There is no charges or fee for using mobile banking app as it is free to use for your financial transactions or banking services.

Note that you must have an account with the bank or financial institution in order to download, install and use the bank mobile banking app on your mobile phone.

2. Mobile ussd code

Mobile ussd code is another type of mobile banking where bank offers a unique ussd code which will be used for financial transactions on a mobile phone.

A typical example of a mobile ussd code is the gtbank *737# or the zenith bank *996#. All banks and non bank financial institutions in Nigeria has a unique mobile ussd code which their customers will use to perform financial transactions right on their mobile phone.

Talkimg about what are the types of mobile banking, the mobile ussd code doesn’t require internet connection and it can be used on any type of device that supports a sim card card and a dial keypad.

This literally means you can use mobile ussd code on a feature phone, smartwatch that has a sim card slot, smartphones like android and iPhone.

Just like the mobile banking app, before you can use the mobile ussd code on your mobile phone, you have to register with your account number and other bank information.

Mobile ussd code is free to use except for charges like checking of account balance and other account information.

3. The sms banking

This is the last type of mobile banking and it is not so common or popular like the other two I mentioned above.

The sms banking requires you to send a text message inform of a code to your bank through sms text message and they will get back to you or reply your message.

For example, you want to know your bank account number as you can’t seem to remember it anymore.

All you have to do is to open the message app and enter retrieve bank account number or enter a code to retrieve bank account number and send it to the number provided by your bank or financial institution for their sms banking.

Talking about is the sms banking free, mostly it is not free as you will be charged by your network service provider for sms charges or the money deducted from your airtime.

Mobile banking examples

A typical example of mobile banking is the first mobile banking app or the chase bank mobile banking app.

Chase bank has their mobile banking and which can be downloaded from the Google play store or the ios app store.

Another mobile banking examples is the gtbank *737# or the Access bank sms banking. If you have a bank account inquire from your bank about their mobile banking app. That their banking or financial app is a typical example of mobile banking.

What are some of the uses of mobile banking?

Mobile banking is used for bill payments, sending money, check of account balance, statement of account, request for a debit card, etc.

They includes the followings;

• For bill and utility payments.
• To check bank account number, bank account balance and other bank information.
• To check or request for account statement.
• To request for a loan or loan repayment.
• To request for a debit card or even a credit card.
• Through mobile banking you can easily contact the bank customer service representative.
• To open or close a bank account.

There are so many of them but these one’s are the most beneficial to me.

How can I open mobile banking?

To open a mobile banking account, first you have have an account with the bank or financial institution. Then go ahead and install the bank or financial institution mobile app and get started with the registration.

Now let me explain a step by step guide to open mobile banking;

• You must have a bank account with the bank or financial institution.
• Go to Google play store or ios app store and search for your bank mobile app.
• When you see it, download and install the app on your mobile phone.
• After you are done with the installation, open the app and tap on get started or sign up.
• Using your account information sign up for your bank mobile banking and you are good to go.

However, I recommend you to first contact your bank and inquire how their mobile banking works.

For the ussd code and the sms banking, all you have to do is to get your bank ussd code or sms banking code and get started by registering using your bank account number and other information.

Can I use mobile banking without debit card?

Yes you can use mobile banking without a debit card as it is not compulsory. Depending on the bank, debit card is only used when registering for a mobile banking account, but after that you don’t need a debit card for mobile banking.

Now if you have a token hardware for your bank account, you can do away with your debit card when it comes to mobile banking.

But I recommend you to contact your bank customer service representative and inquire if debit card is very compulsory for mobile banking as banks has their different ways of banking services.

Is banking on mobile safe?

Banking on mobile is quite safe but not entirely safe as you have to do every possible means to protect your bank account.

For example you need to hide your mobile banking password from third parties else someone will comfortably login and access your mobile banking account.

But with the password and pin, it makes it quite impossible for someone to have access to your mobile banking account unless you have out your password and pin to a third party.

What are the advantage of mobile banking?

The main advantage of mobile banking is that it is very convenient and 24/7 available to the bank customer.

Below are the listed advantages of mobile banking;

• Very convenient means of sending money, checkimg account informations.
• 24/7 available to bank customers.
• No need queueing up in the banking hall for hours only to perform financial transactions.
• You can easily request for a debit card, credit card or block your card or bank account.

What are the disadvantages of mobile banking?

The main disadvantage of mobile banking is someone’s mobile banking password or pin might fall into the hands of a third party which is very risky.

In a situation whereby you lost your phone, you need to quickly go to the bank to block your bank account as your mobile banking app might get hacked and accessed by a hacker. However, it is quite difficult to access someone’s mobile banking account unless the person mistakenly exposed it’s password and pin.

Is Google pay mobile banking?

Google pay is a mobile banking as you are using the app on your phone which is linked to your bank account to make a payment.

Any payment you made using a mobile app is a type of mobile banking and both Google pay, Apple pay, etc are among them.

Talking about what is the importance of mobile banking, kindly note that mobile banking has helped to make banking and financial services to be better, faster and very convenient to the bank customer.

What is difference between net banking & mobile banking?

The difference between net banking and or online banking and mobile banking is that online or net banking doesn’t require a mobile app, while mobile banking requires a mobile app.

Now let me go ahead and show you more difference between net or online banking and mobile banking.

Conclusion

When talking about what is meant by mobile banking, kindly note that mobile banking is a banking services offered by banks and non bank financial institutions, which provides the means of banking or financial transactions by simply using a mobile phone.