Mobile banking has grown at an astonishing rate in the last four years. We are not talking about one country here, almost everywhere consumers seem to make the switch. This swift transition has surprised many pundits.
You see, one would think that mobile phones are not the safest of devices. You carry them with you, you can lose them at any time. However with modern data encryption and security techniques, it seems that mobile banking is safe.
Some people say having a wallet in the shape of a mobile device on the go makes you spend more. That is why small businesses and start-ups have thrived. The economy is in good re-circling but the consumer has suffered in terms of saving money.
But who cares, let’s live every day as it comes to you. Isn’t that the whole point of having money? To enjoy life and get what you want.
Mobile phones have changed how things work, they have also given a peek into our future. If you are an up and coming entrepreneur or financial expert, the following information can be very useful for you.
Why are people switching to mobile phones ever so swiftly?
Let’s see why.
1. Easy to use
Let’s start with the most obvious factor in the rise of mobile banking; it is easy to use. You can check your balance, make payments on the go. These days no one has the time or energy to go to banks and stand in queues for minor banking tasks. This easy to use solution is the primary reason people are rapidly switching to mobile phone banking.
Simon Dyer from Swift Contract Phones believes accessibility is a key driver: “Most likely there is a bank the world remaining that doesn’t have a mobile banking app. In your smartphone, with an internet connection, you can make banking transactions. Conventionally you would need a chequebook, sign it and take it to the bank, or go through the deposit slips and demand draft forms, but now you can login with your secure password and make transfers, pay bills and check your balance.”
3. Mobile-only banks
Mobile-only banks were a distant reality a few years ago but now they seem like an evident foregone conclusion. There are hundreds of mobile-only banks opening across the world. They have lower interest rates because of decreased costs. These banks are essentially payment and account maintenance apps.
If we step aside from conventional banking concept and consider payment services like PayPal, Payoneer, Stripe and others, these are essentially mobile-only banks.
- Financial advantage of low fee and interests
why won’t anyone switch to mobile banking!
4. Paperless banking
You may not have considered it but environmentalism is also affecting banking. Both people and corporations are aware of the fact that we need to protect trees and what better way to do it than internet banking.
The other aspect of going paper-free is the risk and security. Files can be lost, stolen or get damaged. A digital footprint however is harder to remove, unlikely to be damaged by a cyber accident and it is also easier and cheaper to store.
5. Mobile banking is more secure
With the invention of two-factor authentication models and advanced encryption techniques mobile banking is much more secure than you think. In fact your signatures are more likely to be successfully forged than your mobile phone hacked.
Almost every financial app provides you with a push notification service that sends you a message on your mobile every time a transaction occurs.
Having said that according to some recent surveys some people still that mobile applications for banking are not safe. Their skepticism is understandable but largely unfounded. Tell me, how many people have you heard of, from whom money was stolen from their online banking accounts? Not many, I cannot even think of one.