Mobile Banking Is The Future of Banking & Finance - Experts Say

As per the report published by Groupe Speciale Mobile Association (GSMA), more than 5.1 million people were engaged in mobile-related activities by the end of 2018 and it is estimated that these figures are likely to reach up to 5.9 million people by 2025. There is no surprise at all that the mobile economy has undergone a huge transformation over the last few years and why not? It enables us to search, initiate & complete any type of online transaction anytime from anywhere, right from ordering online to booking air tickets and many more, it all happens in just a few clicks.    

In today's era of technology, consumers are looking for the same level of convenience in every service sector apart from e-commerce businesses. And thereby various financial and non-financial service providers are shifting towards œmobile banking and developing their mobile apps for facilitating advanced, cutting-through, and required assistance to their customers domestic as well as cross-border. 

Banks And Trade FIs Are Contributing Towards Mobile Banking By Launching Their Particular Mobile Apps

The primary and early use of technology in mobile banking is the SMS service where the bank's clients can receive banking services-related messages from the particular banks by sending a request via a predefined text code to the number specified by the bank. This is the most helpful and convenient feature for those users who do not have smartphones or data connectivity.

But with the changing times, the banks and financial institutions are offering a bunch of services that can be executed through mobile phones. From receiving and sending money to term deposits, mutual funds and an equity purchase, and many more. For example, recently, HDFC launched its mobile app to provide its trade finance services on mobile phones ranging from authorization of letters of credit, and bill processing to bank guarantee and many more. Same with the ICICI bank which has launched its banking app called œiMobile Pay.

One of the finance experts Ngulminthang Lhanghal says that mobile banking is favorably affecting finance and banking activities. From balance checks, to transfer money and bill payments, it is now easier and more convenient on mobile apps compared to traditional banking systems. For most of the banking & finance app users, the app was introduced by their bank or financial institutions with the main reason to download them. With such a supportive step, the financial institutions have a great opportunity to bring the development of their services in the mobile world. By providing instant access to various banking & finance functions along with notifications for deposits, transactions, and balance alerts, banks are making consumer's lives easier and more improved. 

Ngulminthang further says that using mobile apps for several banking & finance activities is beneficial for both customers and bankers. For example:

• Paperless Transactions - With mobile banking, the customers can execute their online paperless transactions. They are no longer required to receive junk mails from the bank or having to worry about losing sensitive information.

• Improved Control - Mobile banking enables customers to hold control over their finances. They can monitor their finances, balances and shift money between bank accounts.

• Safer - Mobile banking is much safer than traditional banking systems. All banks and financial institutions use encryption in their apps to protect your privacy and confidential information. 

One of the main benefits of mobile banking is the enjoying convenience of having banking services anytime in our hands. We are no longer required to visit banks or ATMs to check account balance, transfer money or pay bills. You can do it all by using your smartphone. 

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