Mobile banking is nothing more than making use of or utilizing banking services using just two swipes on your smartphone, and mobile display. The real question is: do you need to consider using mobile banking instead of the traditional method of using banking services? From the look of it there are lots of benefits to using mobile banking, and that’s true but you should be careful about overlooking some issues you’ll need to tackle at some point. What are these issues? You may ask. We will discuss in this article will focus on the advantages and disadvantages of mobile banking. Okay, let’s get started right now.
Also Read: What is Advantages and Disadvantages of Financial Accounting?
Advantages of Mobile Banking
1. Saves Time
One of the major benefits for mobile banking that it helps you save time. Imagine not having endless waiting in the bank, or a drive to check your balance or to make a small transaction. All of this can be done and much more from anywhere and at any time using your smartphone via mobile banking. This, therefore, is an amazing option for busy individuals or those who don’t want to take away their most important daily chores with tedious visits in the banking establishment.
2. Remote Banking
Mobile banking eliminates the geographical boundaries for access to financial services. You can manage your account and account as well as perform required bank transactions easily from the mobile phone, no matter if they are in the country, in rural areas, or far from the local branch. This is extremely helpful for those on the go or living in locations where there aren’t many banking options.
3. Easy Financial Monitoring
Additionally mobile banking lets you make everything customized and at any time one can see his balance and the transactions of the past few months are readily available for viewing. Activity on your account can also be tracked. The instant access allows you to spot any kind of suspicious activity quickly which increases your security in the financial realm. Regularly checking your bank account can assist you in managing your finances and track your expenditure, which puts you in charge of your cash.
4. Enhanced Accessibility
The ease of use for mobile banking apps is extending to an array of bank services. They permit the processing of all kinds of transactions include transfer of funds, paying some bills, get a loan, or manage investments, really all of it, with out the need for banking or visits for a bank. Mobile banking is a solution that is simple to use and is user-friendly for those to whom traditional banking poses an obstacle, making managing finances an simple task for everyone.
5. Value-added Services
Additionally, many of these apps for mobile banking provide additional services that increase the utility of the app. This could include the possibility of paying utility bills, purchasing insurance, topping up your mobile phone and, sometimes, be as extensive as having the opportunity for investing into mutual funds and stocks.
6. Financial Management Tools
Another thing that is exciting is the entire collection of tools for the management of finances that mobile banking offers. A majority of mobile banking apps have features that allow users to prepare budgets and create alerts for spending. They followed by savings. These apps are designed to assist users in staying financially well-organized, make better decisions with their finances, and keep going with a healthier financial condition.
Disadvantages of Mobile Banking
1. Internet Connection Is A Must
The main drawback to Mobile banking’s biggest drawback is the utter dependence upon internet connection. In the absence of a reliable or reliable internet connectivity, it’s difficult to make use of banks that offer mobile access. This problem is especially acute in areas where the internet is not always reliable, thereby limiting access to vital financial services just when they’re required most.
2. Security Concerns
While banks have been able to do their jobs by implementing top-of-the-line security measures to guard transactions, the risk of identity theft and hacking remain a significant concern. As of now, cybersecurity remains a major concern because the growing sophistication of phishing scams aims at the collection of personal data. This is why we urge that you follow safe mobile and online banking practices including ensuring that you have strong as well as unique passwords to your banking accounts and refraining from performing any financial transactions via public Wi-Fi.
3. Technological Literacy Required
Mobile banking is a requirement for a certain level of technical proficiency. This may result in a few people being left out especially the older generations or people who are not adept in using technology. In this case most of those with less technical skills could not use the services, since the majority of times, it is typically restricted to users with a minimum knowledge of technology on devices such as smartphones.
4. Occasional Technical Glitches
Like every other technology-based tool the mobile banking app is susceptible to a few glitches or glitch that can disrupt the operation. This can be a major source of annoyance, particularly when transactions are time-bound or urgent. Although banks usually deal with such issues as fast as possible, the frustration caused by the inability to access funds is a major issue for many.
5. Varying Features
The features available by mobile apps for banking vary widely and are not limited to just one type of app. Certain apps offer more functionality and diverse services, whereas others offer access to the smallest subcategory of banking functions. This could impact the operations of your bank in certain situations where you require functionalities that your current app does not offer. Therefore, it is important to select the correct application for your banking needs on mobile and it could be quite complicated at times.
6. User Interface Quality
The performance that a banking mobile application is also dependent on the user interface as well as its overall usability. Poorly designed mobile apps can make navigation difficult which can lead to a frustrating user experience. The level of the interfaces naturally differ between banks one from the next and could significantly impact the level of satisfaction and ease you receive from these apps.
Final Thoughts
It is no doubt that mobile banking is an innovative thing in the field of offering and utilizing banking services for the general population. There are however a few issues to be considered before you give up traditional methods of banking and integrate mobile banking into your everyday routine.
