Mobile banking has developed a lot over the last few years to perform various roles in the banking industry and hence decongest banking halls. Mobile banking involves the use of mobile devices such as tablets and smartphones to access banking services. The devices used in mobile banking employ apps that run on the devices to access the banks. The use of apps is the main difference between mobile banking and internet banking. The paper will discuss the different uses of mobile banking, the challenges of the type of banking and how banks are trying to solve the problems. The paper will also compare mobile banking to other money transfer services such as PayPal and Apple Pay.
Banks use mobile banking services for several purposes. One of the primary purposes is accessing account information. Customers of the banks use the apps to access their mini-statements and check the histories of their accounts. Customers also get alerts from their banks via the mobile apps. For example, if some types of services will be down for some time, customers can know through the apps (Laukkanen, 2016). People can also access their loan statements. Another kind of information that people get through banking apps is insurance policy management. Customers of banks also use the mobile apps to transact with other parties. People can move money between their accounts or to transfer them to the accounts of other people. Customers of banks that have mobile banking services can pay third parties using the apps, for instance, people pay bills like electricity bills. Mobile money applications also help people to monitor remote transfers. Besides, customers can also make investments using the mobile banking apps. For instance, people can access portfolio management services via the apps. Individuals can also access real-time stock quotes. Lastly, customers of banks can also get alerts on the prices of securities via the mobile banking apps to enable them to invest. Mobile banking is also used in accessing customer support services. For example, a customer of a bank may use the services to know the status of their requests for a loan and other forms of credit. For instance, one may want to know the state of their mortgage approval and insurance premium payment. Customers can also check for availability of their chequebooks and request ATM cards using mobile banking. The apps can also tell the clients where automatic teller machines are located (Shaikh & Karjaluoto, 2015). The popularity of the services is based on the needs of the customers and the security of the services. For instance, more people would prefer apps to pay for services because it is convenient.
Many people are skeptical about how secure the mobile banking applications are. People are afraid of hackers stealing their money. Also, people are skeptical about the technical abilities of the mobile apps. Banks are responding by putting in place measures that increase the levels of security when logging into the apps.
Mobile banking apps compete with other online methods of payment methods like Pay pal and Apple Pay. Their use by customers depends on the benefits and limitations of all the options. Proprietary mobile banking apps have several advantages over the other online methods of payment, which include safety. Proprietary apps are directly connected to banks and are therefore safer as compared to PayPal and Apple Pay (Laukkanen, 2016). Another advantage is that when using the apps, customers can complain to their respective banks and therefore get the solutions of their problems in person. Therefore, people trust the apps more because of the personalized experience that the apps offer the customers. The apps also offer more services than the money transfer services like PayPal. As already seen under the functions that banks use the apps for, people can access loans and manage investment portfolios using the banking apps. Such features are not found in the mobile transfer applications like PayPal. PayPal and Apple Pay have the advantage of being international and therefore they are able to make transactions with corporations across the world.
In conclusion, mobile Banking apps have revolutionized the banking industry. Apps have made transactions more convenient to customers and decongested banking halls. However, the apps have security concerns that the financial institutions are trying to solve. Nevertheless, the apps can compete with other money transfer services that work via the internet like PayPal and Apple Pay. Despite the strides that the banks have made through the proprietary apps, more research and design need to be done to ensure that customers’ experiences improve.