Mobile Banking
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Mobile banking is just starting to arrive as an
option to handle your finances. There are two types of transactions, a push
transaction and a pull transaction.
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A pull transaction is where the member initiates
the transaction. One requests their balance, a funds transfer, or a transaction
history request. The pull transaction is a two way notification, with a request
from the member and a response from the financial institution. The push
transaction is a one way notification, from the financial institution to the
member.
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Mobile banking can be used anywhere you take
your device. Depending on what type of device is used, the options available to
the member vary. Take a look at these:
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First, there is the Interactive Voice
Response (IVR) system that can be used on any phone, even if it is not
a mobile phone. It is the automated system you find when dialing the bank’s
phone number. You can press a certain prompt for the option you want, and it
navigates the menu to arrive at the final page. There are few items that can be
accessed through this feature.
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Second, there is Short Message Service
(SMS). Essentially, text messaging. SMS is capable of handling both push and
pull transactions. It also works on almost all mobile devices, and is cost
effective. But a few drawbacks are limited in the number of characters in the
message and are generically generated.
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Third, there is the Wireless Application
Protocol (WAP) option. This is offered on smart phones and other more
advanced devices. Being able to access the internet allows the user to visit
the financial institution’s website. Because the screen on the device is small,
the financial institution addresses that by adjusting their mobile site. That
can lead to having to navigate through more clicks than what would be on a
personal computer. Also, these types of devices are not enabled with anti-virus
and firewall protection.
· And last, there is the Mobile App. Banks create this application to be downloaded to the device in use. The app creates a reliable channel to access the accounts and perform more complex transactions. Though this option creates efficiency, the application may be only available to certain devices. And, again, the device itself is vulnerable to attack.
Online banking
is an electronic payment system that enables
customers of a financial institution to conduct financial transactions on a website operated
by the institution, such as a retail bank, virtual bank, credit union or
building society. Online banking is also referred as Internet banking, e-banking,
virtual banking and by other terms.
To access a financial institution's online banking facility, a customer with
Internet access would need to register with the institution for the service, and
set up some password (under various names) for customer verification. The
password for online banking is normally not the same as for telephone
banking. Financial institutions now routinely allocate customers numbers
(also under various names), whether or not customers have indicated an
intention to access their online banking facility. Customers' numbers are
normally not the same as account numbers, because a number of customer accounts
can be linked to the one customer number. The customer can link to the customer
number any account which the customer controls, which may be cheque, savings,
loan, credit card and other accounts. Customer numbers will also not be the same
as any debit or credit card issued by the financial institution to the
customer.
To access online banking, a customer would go to the financial institution's
secured website, and enter the online banking facility using the customer
number and password previously setup. Some financial institutions have set up
additional security steps for access to online banking, but there is no
consistency to the approach adopted.
Online banking facilities offered by various financial institutions have
many features and capabilities in common, but also have some that are
application specific.
The common features fall broadly into several categories:
- A bank customer can perform
non-transactional tasks through online banking, including -
- viewing account
balances
- viewing recent
transactions
- Downloading bank
statements, for example in PDF format
- viewing images of paid
cheques
- ordering cheque books
- Download periodic
account statements
- Downloading
applications for M-banking, E-banking etc.
- Bank customers can transact
banking tasks through online banking, including -
- Funds transfers
between the customer's linked accounts
- Paying third parties,
including bill payments (see, e.g., BPAY) and third
party fund transfers(see, e.g., FAST)
- Investment purchase or
sale
- Loan applications and
transactions, such as repayments of enrollments
- Credit card
applications