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05 March, 2022

Explain the concept of mobile banking.

 Mobile banking (also known as M-Banking, m-banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA).

Mobile banking and Mobile payments are often, incorrectly, used interchangeably. The two terms are differentiated by their service provider-to-consumer relationship; financial

institution-to-consumer versus commercial institution-to-consumer for mobile banking and

payments, respectively. Mobile Banking involves using mobile devices gain to access financial services. Mobile payments on the other hand may be defined as the use of mobile devices to pay for goods or services either at the point of purchase or remotely. Bill payment is not considered a form of mobile payment because it does not occur in real time.

The following services are provided by a bank to its customers through mobile banking:

A. Pull services

I. Account balance inquiry

II. Last three transactions

III. Cheque leaf status

IV. Profit/interest rate on deposit V. Foreign currency exchange rate VI. Branch location/ phone number VII. ATM booths location

I. SMS registration information

II. Help list for key words to send SMS III. Help message format to send SMS

A. Request services

I. Fund transfer

II. Mobile bill payment

III. Cheque book request

IV. Account statement print request

V. Account statement request by courier/e-mail

B. Execution services: I. Stop payment

II. Stopped cheque leaf reactivation

III. PIN change

C. Alert services

I. Debit alert

II. Clearing cheque return alert

III. Loan expiry

IV. Scheme deposit maturity alert