Did you know? The value of digital payments and other transactions has increased from an amount of INR 254.5 crores (in FY 2013-14) to INR 865.9 crores (in FY 2016-17) across all banking platforms (as per the banking industry statistics report). This massive growth reflects how smartphone technology, among other things, has also impacted the way we do our banking, thus creating a dramatic surge in the number and value of mobile banking transactions in India.
So, what exactly is the meaning of mobile banking and how does it differ from Internet banking?
Mobile banking is the use of your smartphone to perform banking transactions including checking account balance and other operations, bill payments, transferring of funds between bank accounts electronically. While Net banking allows you to access your bank account from a laptop or desktop computer, the advantage of mobile banking is that it enables bank customers to do their banking transactions directly from their smartphone, irrespective of their physical location and time.
Along with Internet banking for online customers, leading Indian banks are now offering free mobile banking apps that their customers can download and use on their smartphone. The increasing adoption of smartphones by rural and urban Indians, along with initiatives by the Reserve Bank of India (RBI) and the Indian government to encourage the use of mobile banking for account transactions and payments are driving this transformation.
Still not convinced on why you should join this digital transformation? We give you top 10 reasons that will help change your mind!
As a banking customer, mobile banking allows you to access your bank account and perform transactions 24×7 around the clock.
You are no longer restricted by the physical location and banking hours of the bank operating your account.
Mobile banking apps make it very convenient to view your account balance and recent transactions on your account, thus enhancing the security aspect of your banking.
Configure alerts on your smartphone banking apps to send SMS notifications to your phone each time any credit (or debit) transaction occurs in your bank account.
Want to transfer money to your friend, family, or business associate? There is no longer any need to withdraw cash or issue a bank cheque. Fund transfer on mobile banking has made it convenient to transfer the money between 2 bank accounts, irrespective of whether the accounts are in the same or different banks.
Along with the low cost of the transaction, fund transfers through mobile banking is a faster mode of exchanging payments.
Utility bill payments
Mobile banking has made it convenient to pay all your utility bills (including electricity, phone, and gas bills) from a single shop, namely your smartphone.
Now, pay your utility bills any time at no additional transaction costs!
Discount offers and reward points
Customers, using their bank debit or credit card for shopping transactions, can collect reward points on each card transaction. These reward points can be accumulated for further shopping and other benefits.
Enjoy promotional offers and discounts on leading brands by switching to mobile banking!
Lower operational costs for banks
Alongside customers, mobile banking is beneficial for lowering the operational costs for banks. As the customers use the digital mode to assume more control over their banking and payment transactions, banks can afford to reduce their transaction costs and offer better services to their customers. These cost-saving operations include the ease of opening new accounts, along with a reduction in the issuance of cheque books and bank branch visits by customers.
Take a greener route for the environment by switching to mobile banking and help banks operate in a paperless way.
Reduction in fraud
Along with details of each transaction on their account and the use of the mobile alert mechanism, you can now directly monitor your bank account activity, identify any fraudulent transactions and contact the bank authorities immediately.
Mobile Banking helps you keep a vigilant check on your account and report any fraudulent activity real time.
Use of mobile wallets
Thanks to the increasing use of the smartphone device for banking, mobile wallets (or E-wallets) are gradually being adopted in the Indian market. Mobile wallets let you use your smartphone in place of a physical credit or debit cards. Banks are taking significant steps to match up to the advanced digital economy, and Kotak Mahindra banking has already made a progressive step by introducing the Kotak 811. It is India’s first downloadable banking account. This facility allows the Kotak 811 account customers to operate their banking accounts entirely from their smartphone.
With mobile banking, transact on the go just through your smartphone device with the new option of a virtual debit card!
Ease of use
Mobile banking apps on your smartphone are easy to use for young users as well as for older customers. Along with providing error-free transactions, most of your regular operations can be completed in a few easy steps on a friendly user interface.
No more standing in a queue to rectify minor errors at a bank, when you can do it on your own!
Along with the faster speed and ease of completing account-related transactions, mobile banking is more secure as every transaction like fund transfer, and bill payment requires the user to authorize the payment by entering a verification code sent through SMS by the bank to their smartphone.
Mobile banking provides an added layer of security by enabling two-factor authentication to ensure your account does not get compromised at the hands of a hacker.
With the continuing growth and adoption of smartphones and mobile Internet in India, mobile banking services will be an essential part of daily banking transactions for banking customers now and in the near future. An increasing number of Indians will prefer to do their banking on their smartphones, thanks to the ease of use and convenience that banking apps are offering. With digitization in full swing in every aspect of our lives, mobile banking will be the way to go for banks to catch up with this fast-paced revolution!