There is no questioning the popularity of mobile banking. It has given customers an opportunity to manage their finances anywhere, anytime. Convenience is the foundation of mobile banking, but there are also a few drawbacks—such as the risk of identity theft.
First, the pros of mobile banking:
• Mobile banking offers more ways to connect to the bank, beyond visits and conventional telephone calls. Banks need you to be more engaged in your finances, it gives them the opportunity to build brand loyalty. By allowing access to accounts and performing transactions wirelessly, banks become indispensable in the lives of their customers.
• Many account numbers are not transmitted over wireless connections. Banks have spent billions of dollars establishing security measures to save valuable information from unauthorized transmission.
• Banks have improved encryption for wireless transactions. With the rise of mobile banking, there has been a high priority placed on the safety and security of mobile banking. Wireless banking has become one of the main selling points to service customers.
• Mobile banking is usually a free service. Who doesn’t love something free? In this period of fiscal austerity, any premium you can get gives an advantage over the competition.
For all the benefits of mobile banking, there are still a few problems.
The cons of mobile banking:
• Emails and text messages are generally not encrypted. When using the bank applications, there is a high level of security. However, outside of that structure, the security is not trouble free. If you text or email your bank, it can be intercepted by a third party, possibly exposing you to identity theft.
• Few anti-virus software options for mobile devices. Although established for personal computers, the cell phone does not have the same kind of security available to the home user. That is changing, however. More carriers are integrating virus protection in their services.
• Mobile banking is still a relatively new method, and not quite fully proven.