Over the years, mobile phones have ceased to be just mobile phones. The advent of Smartphones and surge in mobile phone telephony technology has made a phone much more than just that. A mobile phone is a personal digital assistant cum a workstation. Growing usage of Internet via services like EDGE, 3G and LTE has further enhanced its usage and dependence. Usage of mobile Internet globally, almost tripled between 2009 and 2010, as per a report from Cisco, but that’s not the most surprising bit. The real news is, they expect mobile data use to increase by a factor of 26 by 2015 – and a large part of that growth will come from users who don’t even have electricity at home. So it is only logical that the credit unions saw mobile banking as a great opportunity to reach out to new and existing customers.
Mobile Banking, basically, is a system that allows financial institutions to conduct a number of banking transactions through a mobile device. It has been gaining traction all over the world. Among the biggest advantages of mobile banking is the no-fee checking, feature. The biggest reason for the spectacular growth in mobile banking is that there is a need and it is possible to meet the need with technology that actually works. There is also a spirit of optimism and a willingness to try out new things. The degree of rampant innovation in this sector is almost unheard of. Also, a new breed of consumers all over the world is starting to emerge with an open mindset and with big dreams. They want to embrace new innovations. Mobile banking gaining so much traction is a proof of this trend.
There are a lot of advantages to mobile banking. Some of them are as follows. In case of online banking, you must have an Internet connection and a computer. This is a problem in developing countries. However, with mobile banking, connectivity is not a problem. You can find mobile connectivity in the remotest of places also where having an Internet connection is a problem. It saves a lot of time. It is also very cost effective, and various services can be accessed at the tip of your fingers. Banks can also use it to promote services like auto loan refinance rates, microfinance rates and other special services to a specific group of individuals. Mobile banking also reduces the risk of a fraud. One can get SMS intimations and notifications post every transaction. So if a wrong transaction has happened, one can easily notify the bank. It prevents fraudulent activities. Thus, with the convenience it offers to customers and banks alike, Mobile banking is here to stay.