MobileBanking

Mobile banking refers to banking services accessed through mobile devices, such as smartphones and tablets, using dedicated applications, mobile-optimized websites, or SMS prompts. It enables customers to view account information and perform transactions without visiting a branch. Typical services include balance inquiries, funds transfers, bill payments, merchant and person-to-person payments, remote check deposits via the camera, and card management (such as enabling or blocking a card), along with transaction alerts and budgeting tools.

Access and authentication: Users register with the bank’s app or mobile site, bind a device, and log in with credentials, often supplemented by biometrics (fingerprint, facial recognition) or one-time codes. Transactions may require additional verification, such as a token or PIN.

Security and privacy: Mobile banking uses encryption, secure channels, and fraud monitoring. Risks include malware on devices, phishing, SIM swap, and data breaches. Banks deploy risk-based authentication and monitoring; payment data may be subject to industry standards like PCI DSS, and in Europe PSD2 regulates access by third-party providers.

Usage and impact: Benefits include convenience, 24/7 access, faster transfers, easier budgeting, and reduced branch traffic. Limitations include reliance on internet access, device compatibility, software updates, and potential security concerns. Adoption varies by market and socio-economic factors.

History and trends: Mobile banking originated with SMS banking in the late 1990s and grew with smartphone apps in the 2000s. The open banking movement and APIs have expanded capabilities and third-party access. Future directions include enhanced biometrics, AI-driven fraud detection, expanded digital wallets, and integration with wearables.