Benefit-trouble of Mobile Banking and Digital Bank

Benefit-trouble of Mobile Banking and Digital Bank

 

Even a few years ago, we had to go to the bank to receive banking services. However, with the advancement of technology, increasing popularity and use of internet, their role in banking services has also increased tremendously. Nowadays we all have an idea about mobile banking. But in many cases our perception about mobile banking is wrong. In today’s article we will know in detail about what is mobile banking and its advantages and disadvantages.

What is Mobile Banking?

Simply put, the process of using banking services through mobile is called mobile banking. For example, bank account balance checking, fund transfer, bill payment etc. can be done through mobile banking. Again it can be said that mobile banking means, “the activities involving every financial transaction done through a mobile device”. This mobile banking service is provided by a bank or any financial institution to their customers.

Through this mobile banking service, customers can conduct almost every type of financial transaction from their smartphone or tablet from anywhere using their correct user ID and password. Through this, it is possible to transfer money from one’s own bank account to the bank account of any person in the country from one’s mobile phone. Basically, the full benefit of mobile banking can be taken from the smartphone, although it can also be used from a normal mobile through SMS. So, nowadays, it is very important for each of us to know about this mobile banking service and take advantage of it.

Mobile Banking Apps

Mobile banking apps can be used like any other mobile app. To use it, customers can download it from their bank’s official website or from Google Play Store or App Store. You need the said platform to use the services associated with your bank on mobile. And, an application is used to create the banking platform that is directly connected to the bank’s server. All these official apps connected with bank servers are called mobile banking apps.

Advantages of mobile banking

In modern times, many customers are completing their bank transactions from their mobile phones using mobile banking services. But still many customers do not accept this mobile banking service because they do not know about the benefits of this service. The benefits of mobile banking are given below-

  • The use of mobile banking is mainly done with the help of internet. However, it is possible to avail this service through SMS and phone calls without internet.
  • Through mobile banking services, banking can be availed 24 hours a day, 365 days a year using a mobile phone or tablet.
  • Mobile banking is considered to be a much simpler, easier and more secure service than traditional internet banking.
  • Mobile banking services are much stricter in terms of security. Transaction will not be authorized if all details, pass code, transaction code are not available for login. All these details will remain with the users only so the money kept in the bank will be safe.
  • You can check your bank account balance at any time. There will be no need to go to the bank for this.
  • Taking mobile banking services is very easy. Any one can use it without any trouble and hassle.
  • While some banks charge extra for this service, most banks provide this service free of charge.
  • Through mobile banking, one can directly apply for other services related to the bank at home.

Mobile banking services

Through mobile banking the user can avail the following services-

  • To transact money.
  • View transaction history.
  • Mobile and DTH Recharge.
  • Online ticket booking
  • Apply for a loan.
  • Paying utility bills.
  • Make various types of online payments.
  • Checking account balance.
  • And many more services.

 

Disadvantages of mobile banking

Everything that has advantages also has disadvantages. Disadvantages of mobile banking are as follows – Since transactions can be made at any time through this service, the possibility of cost increases in these cases will increase a lot. Although mobile banking services are very secure, if the user shares his PIN or passcode with someone, he can make transactions in the absence of the user. If the mobile is lost or stolen, banking details are likely to fall into bad hands.

How to activate mobile banking?

The process of activating this service may vary due to different banks having different apps. Basically, after downloading the official mobile banking app of most banks, there will be an option to register an account directly.
While creating an account, you may be required to provide your ATM card password, mobile number registered with the bank and ATM or debit card details for account verification. Nowadays mobile banking is a boon for common users.

What is Digital Bank?

Banking done through digital platforms without any handwritten or printed documents is called digital banking. Digital banking means the ease of getting banking services online. Digital banking enables a bank’s customers to access banking products and services through electronic or online platforms. Digital Bank will have its head office as per Central Bank policy. But it will be a non-establishment in providing product or services.

That means this bank will not have any branch or ATM booth. All their services will be app based through mobile phones and other digital devices which is very easy. As a result, customers can always receive the service. Digital Bank can provide services with the help of virtual card, QR or any other advanced technology to facilitate customer transactions. But plastic card cannot be given directly due to certain rules.

Conditions for setting up digital bank

In the current banking system, to open a bank in Bangladesh, a capital of 500 crore rupees is required. But to open each digital bank a minimum capital of 125 crore rupees will be required. Within 5 years of granting the Central Bank license, the bank has to issue an IPO in the primary stock market of the country.

How Digital Bank will be managed

This office will be the main point of contact with them. It will work to address complaints and issues prioritizing customer feedback both digitally and physically.

What digital bank sponsors need

Any person who is a defaulter of any financial institution within the last five years or his family member shall not be considered as a sponsor of Digital Bank. Individuals who are in bankruptcy legal proceedings may also be eligible for this. Digital banks in today’s world are providing various benefits. It is hoped that digital banking will provide a much better experience in all countries as well.

Checkout this article: Cautions when buying iPhone – New or pre-owned