Many people confuse online mobile banking as the same thing. While they’re similar, there are several differences between the two. Primarily, online banking takes place from either a desktop or laptop, while mobile takes place from a smartphone.
Understanding Mobile Banking & Its Advantages
Mobile banking can be conducted anywhere there’s a phone network connection. Because phone networks extend over larger areas than WiFi networks, it provides a more reliable access to a customer’s finances. As with online banking, mobile systems include Interactive Voice Response (IVR), Short Message Service (SMS) and increasingly Smart Phone Applications, so that a customer can communicate with their financial institution to make deposits, make withdrawals, transfer funds, or pay bills.
Mobile Online Banking Usage & Prevalence
In the United States, roughly 81% of Americans have accessed an online banking portal in the past year. Furthermore, 69 million report regularly using online access points to conduct transactions, transfer funds, etc.
Interestingly enough, nearly 90% of mobile customers reported using their mobile phone to check their account balances, while only 42% used it to transfer funds. Additionally, only 26% used it to make payments. With the proliferation of smartphones and over 300 million mobile subscribers in the U.S., mobile banking has tremendous growth potential in the US. In emerging markets, where only the privilege few have internet access via computers, mobile banking will eclipse online banking quickly as we saw happen in Kenya with M-PESA.
The Pros and Cons of Online and Mobile Banking
I believe mobile banking will be the dominate remote banking method eventually everywhere. Mobile is more convenient, always with us, and increasingly powerful. For emerging markets, it reaches more people. For developed markets it has added convenience, added functionality, and anywhere utility. Just like we still use mainframe computer, online banking will remain but for most of us will move into the background.
Beginning in the 1990s, online banking has changed the way people access their finances. I believe that mobile banking is the next evolution will change the world and make it easier for more people to have banking tools that empower their life and work.
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