Mobile Banking - Overview, Types, Features, Benefits and Safety Tips | AU Small Finance Bank
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What is Mobile Banking?

    If you have access to a stable internet connection and an internet-enabled smart device, you can easily take advantage of any digital banking service. Be it making balance enquiries, transferring money, or making payments online, today, people have round-the-clock access to banking solutions through Mobile Banking Apps, NetBanking, UPI, Mobile Wallets, etc. When it comes to online banking, Mobile Banking is being used extensively, especially after the introduction of UPI and mobile wallets. In this blog, let’s understand what is mobile banking, how it is used, the benefits of using Mobile Banking, and more!

     

    Meaning of Mobile Banking

    Mobile Banking is a term that has become increasingly popular over the course of the last decade. So, it is common for banks these days to offer their services - financial and accounting, to their customers over smartphones. In its simplest form, Mobile Banking refers to a service offered by a bank to its customers through a smartphone or tablet.

    Mobile Banking is a part of Online Banking, and contrary to popular belief, they are considered to be the two sides of the same coin. Just like Online Banking, Mobile Banking is available 24 hours a day, 365 days a year, and can be used to perform basic functions like utility bill payments, funds transfer, balance checking, setting up spending limits, among others, on a mobile device through the internet.

    Whenever you perform a financial transaction, you will receive all the necessary alerts and notifications on your mobile phone to verify that it’s been done by you.

     

    How to Use Mobile Banking?

    Broadly speaking, there are three ways to access or rather types of Mobile Banking:

     

    Mobile application, also known as Mobile App

    Mobile Banking Apps are among the most popular forms of Mobile Banking. In this case, the bank provides a dedicated Mobile App to its customers with all the necessary features and services already embedded in the platform. 

    Using a bank’s Mobile Banking App, you can:

    • Check your balances
    • Make payments and transfer funds between/from linked accounts
    • Block your Debit/Credit Cards immediately in case of thefts
    • Get mini statements, loan statements, card statements, carry out mobile phone recharge, bill payments, etc
    • Set up automatic bill payments
    • Make requests for cheque books and Debit/Credit Cards
    • You can also check your investment portfolio, if applicable, and monitor your Fixed Deposits, Mutual Funds, and access other investment services

    Check AU 0101 App on Google Play Store & App Store

     

    SMS Banking

    With SMS Banking, the services are far more restricted. The idea here is to register your number with the bank for SMS Banking. Post this, you inquire about your account information by sending an SMS to the bank’s designated number and, in turn, receive a reply from the bank answering your query.

    SMS Banking is suitable for those customers who do not own a smartphone or access to the internet. You can use SMS Banking to check your account balance, obtain mini-statement, and perform other similar activities. You cannot transfer funds or carry out any financial transactions here; it simply serves as a means for you to check your account details.

     

    USSD Banking

    USSD Banking is quite similar to SMS Banking. Once again, it can be used by customers without a smartphone or an internet connection. Instead of sending an SMS to the bank, you make use of USSD codes provided by the bank to access the services. Once you enter the code and hit the dial button, you will receive a menu where you can check your account information, mini-statement, etc.

     

    Functions / Features of Mobile Banking

    Depending on the type of Mobile Banking  App you use, the following are some of the typical functions of Mobile Banking or features that are available to you.

    • 24*7 access to banking solutions
    • Instant money transfer through IMPS/NEFT/RTGS/UPI features
    • Online payments of bills & loans on time 
    • Transactions online via UPI 
    • Start investment in Mutual Fund, Fixed Deposit or Recurring Deposit using the app
    • Enjoy lifestyle services like flight/bus booking, mobile recharge and more
     

    Pros of Mobile Banking

    • Banking at your fingertips:

    You can access your account details and perform basic transactions from your mobile phone, anytime, any day. No matter where you are in the world, as long as you have a smartphone and internet connection, you can monitor your finances with ease.

     
    • Dedicated Customer Service:

    You can get in touch with your bank easily, thanks to Mobile Banking. Whether you are facing problems related to funds transfer or need to block your card immediately, you can approach the bank’s customer support team in seconds, and they will address your issue.

     

    Cons of Mobile Banking

    • Mobile Banking is only useful if you have an internet-enabled smartphone.
    • You need to be well-versed with the evolving banking technologies to enjoy Mobile Banking features.
    • You may be at risk of getting fake text messages or scams.
    • In case your mobile phone gets lost or stolen, criminals/fraudsters can easily gain access to your Mobile Banking PIN and other sensitive data.
     

    Is Mobile Banking safe?

    Yes. Mobile Banking is one of the safest modes for accessing any banking service. However, one needs to be cautious while using SMS Banking or Mobile Banking Apps. A bank never asks for a username or password via SMS or email. 

    Also, since a Mobile Banking App requires you to provide your account & other crucial details, all of this information is encrypted and transmitted across the banking channels with high security. All the data stored with the bank stays confidential. Here are some steps you should follow to ensure safety:

    • Never share your username or password
    • Always use the official Mobile Banking App 
    • Set a strong password
    • Avoid using Mobile Banking Apps where there is open Wi-Fi
     

    Is Mobile Banking free?

    Mobile Banking is free & accessible 24*7. AU Small Finance Bank’s official Mobile Banking App can be downloaded from Google Play Store/App Store with a secured internet connection. For instance, AU Small Finance Bank, which is the largest Small Finance Bank in India, offers AU 0101 App that can be used anywhere by existing bank customers and customers who are not registered with the bank. To start using the app, the customer must enter their account number & other important details.

     

    Key Takeaways:

    • Mobile Banking has truly transformed the way we perform bank transactions online
    • To make the most of it, all you need is a new-age smartphone, a strong password, and a reliable internet connection
    • Make sure you download the bank’s own Mobile Banking App from the bank’s official website to avoid access to fake apps

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