In this article you wil find ✅ advantages and disadvantages of mobile banking for clients, ✅pros and cons of app for busines and ✅benefits of mobile banking over internet banking.
Even 7-9 years ago, mobile banking represented several additional options for the owners of bank cards and accounts. They could be used by SMS or by calling a special support line. There was a separate Internet banking with a very limited list of options and a complex system of use.
Today, remote services of financial institutions are in a kind of symbiosis. You can download the application of your bank to your smartphone and perform almost any operations with your accounts, having access to the Internet. In rare cases, when using the application, you will need to verify your identity by phone. As for the rest, banking applications are simple, multifunctional and have quick feedback. Their advantage is that they save the potential client's time - they do not need to stand in lines to transfer money from account to account, pay utility bills or carry out other transactions with their money.
At the same time, the client has someone who has got their back. It is a bank branch, where you can communicate with a "living person", get advice, issue new cards or make foreign exchange transactions in a safe place.
We have collected key statistics about online banking:
In this article, we will share advantages and disadvantages of mobile banking for customers, pros and cons of mobile banking for business and limitations of mobile banking.
Mobile banking is an Internet bank with reduced functionality and an interface adapted to the screens of gadgets. To use the application, you need to download and install it on your device. At first, the system will prompt you to enter your login and password (or otherwise confirm your identity), after which access to your personal account will open.
Internet banking first appeared in the late 90s, and ten years later users could manage their finances through the bank's website, enter conversations with support, block cards, make transfers and payments.
Today the mobile bank provides access to investments, insurance, discounts, and bonus programs. From the screen of the gadget, you can control bills, send reports to the Tax Service and other regulatory structures, pay bills and send money even abroad.
You may be interested to know what is the difference between mobile banking and internet banking. As the name suggests, mobile banking is done on a mobile phone, that is, on a smartphone. Usually you need to download the mobile banking application of the respective bank. You need to register and log into the application that provides a list of actions and transactions that a person can perform. This type of banking requires access to the Internet, either via a Wi-Fi network or mobile data.
Uses of mobile banking, from the other point of view, are usually done through a computer. Internet banking can be accessed through the bank's website in a browser. You can also enter the bank account via a mobile phone using a browser on the phone. However, if you are using a mobile application, then it will already be mobile banking and not internet banking.
The operations available through mobile banking and internet banking are more or less the same, but this depends primarily on the bank. Both allow customers to check their bank balance, view and request statements and checks, and more. Nowadays, online payments, bill payments and money transfers can also be made using mobile banking and internet banking. However, there are some limitations of mobile banking compared to internet banking. This again depends on the bank and their applications, but the gap is rapidly closing.
The importance of technology to financial services has never been greater. 17.4% of American bank customers, according to the GOBankingRates company, believe that mobile banking services are more important than low cost of services, quality of service and high interest rates. There are some advantages of mobile banking that make this channel popular.
Data on all transactions, changes and other actions of the client are read automatically, operations are carried out within the system.
This is due to the lack of binding to branches, regional centers, etc.
When processing user requests involves the human factor, there are restrictions on the production capacity of the resource, in contrast to the automated approach that is achieved using a mobile application.
The elimination of the human factor significantly reduces the variation in process execution, which leads to a decrease in the number of errors and, accordingly, increases the stability and quality of the process.
One of the most important benefits of a mobile app for banking is that with the help of it the same tasks can be completed faster because automated systems are more accurate in their actions and are not subject to decrease in performance from time to time.
Due to the use of mobile applications for the bank in automated systems, it becomes possible to store and take into account more data about the process than with manual control.
In automated online banking systems, decisions related to typical situations are made much faster than with manual control. This improves process performance and avoids inconsistencies in subsequent stages.
Bank services can be quickly scaled up and integrated with other services.
Information and marketing channels are embedded in the mobile application. This reduces the cost of informing customers, personalized adwords and clients’ notification.
It is no longer possible to stop the processes of financial mobilization. Especially if you consider that the degree of involvement of bank clients in these processes is very high and is constantly growing. The advantages of the mobile banking system, as well as other technologies for remote banking services, are many. What are the mobile banking benefits for customers?
You do not need to have any special knowledge and skills in order to connect to a mobile bank. You just need to download and install the required software, register and ... that's the main pros of mobile banking!
Everyone has mobile phones, we have already talked about this. Mobile networks are present even in the most remote corners of the world. This means that a person can use a mobile bank in any conditions, wherever they are, and at any time of the day.
In most cases, the tariffs for using the Mobile Bank are very low. The cost of services is so insignificant that a person is unlikely to feel that he has spent something when connecting to a bank. And if you calculate: a physical visit to a bank branch in terms of time costs, the cost of gasoline or travel in public transport is much higher. The mobile bank allows you to save money.
Clients use the Mobile Bank also for the reason that they can always control the movement of funds in their accounts, monitor their safety, use information services and have their own personal assistant. On the one hand, it is much easier to make banking transactions with a mobile phone, on the other hand, not a single penny will be lost from your account so that you do not know where it went and for what reason.
It is an ability to quickly block the card if the client notices its loss. To do this, just go to the "card blocking" section, press the button and the card instantly stops functioning. This feature helps those customers who are at risk of being used by other people who know the PIN if the card is lost.
The biggest disadvantage of mobile banking for cooperation with online service is additional risks. This concerns the penetration into the channel of communication between the client and the bank assistant, as well as the penetration of intruders and making payments from account holders. The main cons of mobile banking are:
The biggest security threat in mobile banking is the unencrypted servers of cell phone providers. An expert hacker will be able to obtain information about the account or debit and credit cards of users relatively easily. Also, messages received from banks are not encrypted. This means that there won’t be a problem to intercept the information when it is transmitted through the mobile operator. If the mobile is stolen, the information stored in the messages can be used by another person.
Some banks impose a limit on the number of transactions; the bank can also completely prohibit transactions which in its opinion can be dangerous. Remote management of customer deposits and credit accounts is a high risk for the bank. Most often, these functions are not available in the mobile banking system, or are severely limited. Limitations can apply to both the number of transactions per day and the amount of funds in one transaction.
Interbank payments can be in limbo for up to 3 business days, that is, if you transfer funds on Friday, then the recipient will receive the money only next week, Monday evening.
During the development and improvement of mobile applications, it is important to comply with all requirements, keep abreast of new technologies and test the product in practice. It is testing that helps to find and fix all the flaws in the program so that the user is ultimately satisfied.
Applications for mobile platforms are susceptible to both old well-known threats and new ones that have not yet been fully explored. The spread of malicious applications for Android is growing.
Threats to the security of mobile banks pose the risk of compromising sensitive user data, stealing funds, and damaging the bank's reputation. Developers of mobile bank clients do not pay sufficient attention to application security issues, do not follow the guidelines for secure development. Developers often lack processes for developing secure code and architecture.
The study, based on static code analysis, shows that mobile banks contain vulnerabilities and flaws that can lead to theft of funds. The level of protection of mobile banks in most cases does not exceed the level of protection of conventional mobile applications, while the risks of mobile banking associated with them imply increased security requirements.
It was assumed that the number of specific vulnerabilities for the mobile platform would significantly outnumber the well-known ones. But as a result, you can see approximately the same number of vulnerabilities in both classes. This means that it is possible to carry out well-known attacks on mobile banking applications without knowing their specifics.
Attackers have many ways to execute attacks. At the same time, the cost of carrying out an attack in a real environment can be very low compared to the possible benefit.
Modern security tools for mobile devices - antivirus, MDM solutions, etc. - can reduce risk, but cannot solve the full range of problems. Security should be introduced at the system design stage and be present at all stages of the program life cycle, including the development and implementation stage. It is necessary to carry out code audits, application security analysis, penetration testing.
The risks of mobile banking are inversely proportional to the security of the application. Therefore, a comprehensive audit of the security of mobile banking applications is required.
One of the big problems right now is that most developers don't have adequate information security training. We aren’t talking about the lack of some deep and professional knowledge, we mean basic knowledge. Programmers are tasked with creating interesting new products. At the same time, they can easily fail to see the possible directions of attack in the results of their work; they simply cannot understand how their actions by themselves create threats.
The vulnerability of insecure interprocess communication is laid down at the stage of designing interfaces for the interaction of application components and refers to errors in the implementation of protection mechanisms. The information systems (IS) security architecture depends on the risk model and on the organizational structure of the enterprise. The task of constructing an optimal system is solved on the basis of achieving the set goals and rejecting redundancy.
Code Review technique helps to find some errors in the early stages and get rid of incomprehensible and confusing solutions. It’s not one person who is involved in the work on the code, it’s the whole team, so a fresh look from the outside can often become useful. A programmer who knows in advance that their colleagues will check their work tends to write more accurately and in an organized manner. The output is code that is understood by several people, which means that it is much closer to quality.
Mobile app security is the first expectation of a user experience with a brand. Every day, people operate dozens of programs on smartphones. Many of them transmit confidential information that could be of interest to attackers. Therefore, when launching applications on a device, users want to be sure of their safety. Reliable data protection is a prerequisite for launching an application.
When analyzing the state of information security of an IT infrastructure, multiple vulnerabilities are often found, the elimination of which does not significantly affect the overall level of information security. It is not enough to eliminate the identified vulnerabilities, it is necessary to adjust the existing information security processes and implement effective control mechanisms.
Internet banking is not just a technology, for the implementation of which it is enough to connect a server machine, but a whole system of online interaction with clients. For this system to work efficiently and be profitable, a lot of effort and money are required, including the development of appropriate software solutions.
Internet banking does not stand still: customers ask to add an option, new technologies are periodically introduced, vulnerabilities are fixed, etc. Each of the changes requires updating the entire system and connecting new modules. And here you have to make a choice: to develop the Internet banking system independently or to take advantage of the proposals of the developer companies.
In order to be guaranteed to get a professionally executed project, you can order a website for a bank from our company. We have a proven track record of building web applications across multiple niches in the financial sector. And our programmers have the necessary competencies to build a functional and secure banking site.
With the development of mobile technologies and the mobile Internet, mobile applications have been added to the usual channels of banking services, which allow customers to receive information about the bank and its services anytime and anywhere.
The presence of a mobile application can become one of the competitive benefits of online mobile banking in the eyes of customers who want to be able to manage their products without visiting the bank's offices. Additionally, clients have the opportunity to get quick access to information about ATMs and bank branches.
Fill out the contact form to get more information about the development of a mobile bank.
Enjoy this blog?
Please, spread the word :)
Education Technology: A Complete Guide to EdTech
Best Automatic Machine Learning (AutoML) Frameworks in 2022
10 Retail trends 2022-2023 that will be relevant in the coming years
Development of high-load fintech applications
Have you used Automatic Machine Learning technology in your business yet? Read what are the best AutoML frameworks and write to us if you have any questions.
Written by Nazariy H.
What new trends will determine the future of Retail? We have selected the ten most notable trends that will affect business this year.
Written by Oksana T.
Do your system still work on heavy load? Find out all pros and cons of high-load applications and order one now to outstand your competitors with Geniusee.
Written by Taras T.
Get the right technical partner in Poland. Geniusee offers best custom fintech and edtech software development services across Eastern Europe
Written by Yaryna Y.
In this article, we share our knowledge and experience in developing cryptocurrency trading applications.
Written by Pavlo K.
Find out what technological solutions are in greatest demand in retail. Geniusee will help you develop the best go-to-market retail software based on trends.
In this article we will share information about git branching model. The git flow model was released by Vincent Driessen and helps to hotfix problems quickly.
Written by Ihor D.
Buy Now Pay Later (BNPL) solutions are popular alternatives to credit cards. With proper assistance, companies can develop their own BNPL apps.
Have you ever wondered how to keep a user on your website for ages and prevent exit for as long as possible? Here are some tips based on the Geniusee marketing team experience
Written by Sofiia K.
Find out what are the features of finance application development to ensure that your product will hit the market and bring your business to the top
After identifying business needs and problems, don’t wait to figure out which artifacts best suit your developer's requirements.
Written by Yevhen K.
Did you know Airflow can help you automate tasks in your IT workflow and boost your productivity? Here’s a detailed Apache Airflow overview to help you.
Written by Oleg S.
Check out how to provide an efficient incident response to possible cyber threats and malicious activities.
In this article, review ✔MLOps best practices, ✔ Risks & Challenges, ✔Benefits of MLOps solutions that automate and shorten the machine learning cycle.
Written by Sofiia V.
Are FinTech and RegTech the same? Find out the key definitions and technologies involved to understand the difference.
We can either change an existing retail software
solution or develop retail software from scratch that meets your requirements. Let's discover our
successfully implemented projects in the field of e-commerce.
An on-demand video learning platform that has reshaped the learning and development landscape in the global financial services industry. Designed to empower professionals with...
A sports marketing platfrom for athletes and companies that empowers marketing campaigns and brings brands and ambassadors to the next level of cooperation
A digital platform built to merge traditional banking systems with new-age digital assets such as cryptocurrencies and NFTs. The platform allows tracking and managing of children’s...
Android and iOS mobile app with automated payments, add geolocation services, integrate local market stakeholders, and as a result - the product for rapid grocery delivery in...
Meet one of our clients – Drum! This 5-star application is a platform designed for creators. That’s a great tool for people who care about their personal brands to engage with...
Our client, a technology solutions company in MedTech, aims to make the latest technological advances available to millions by providing high-caliber, more affordable solutions...
Our main goal was to develop a digital platform for healthy habits called EinkaufsCHECK. We aimed to create a hybrid app for iOS and Android for the easiest and most accurate...
Our client is a secure, automated platform that streamlines the merchant cash advance process and enables ISOs and lenders to manage their businesses from one centralized, convenient...
For Crave retail Geniusee has developed 2 enterprise mobile applications that solve the double-sided problem for every shopper visiting the fitting room. The Fitting Room application...
Outstanding case in Geniusee portfolio, Pause – mobile app for meditation. iOS application was downloaded 1000+ times on the launch day.
The Ajuma company was founded by a couple after the birth of their child. They wanted to protect their baby from the harmful effects of ultraviolet radiation sunburn and from...
Zedosh is a new digital advertising platform that financially empowers Gen Z. Using Open Banking, we provide insights into their spending behaviour, tips on how to master money...
Revenu is an All in one POS (Point of sale) management system . It uses the latest trends of technology to manage different types of Food & Beverage from scratch up to reaching...
Realm Five develops devices that collect various data, such as soil moisture, rainfall, amount of water in tanks, condition of tractors and their location, etc. from different...
FactMata is an AI-based platform that identifies and classifies content. Advanced natural language processing learns what different types of deceptive content look...
Tradesmarter is leading in providing white label trading solutions offering a web responsive trading platform that enables top financial companies to unleash a new...
Swoon is an online furniture brand with a difference. Their main idea is that everyone should be able to buy beautifully designed and crafted furniture at reasonable...
Frenotec LLC is a motorcycle distribution company eventually grew into the nation’s largest distributor of Brembo motorcycle brake components as well as became the...
Validify Access is a new innovation discovery platform that showcases only best-in-class and pre-vetted emerging retail technology solutions. Validify helps leading...
NCourage was created to understand the nature of anxiety & stress, the cause of problems with falling asleep, which promotes personal growth, success work and...
Wyzoo App is built on artificial intelligence and learning techniques to identify patterns in your customer data.
Tamam on-demand mobile application connects customers with independent local couriers, who acquire goods from any restaurant or shop in a city and also deliver urgent...
DigitalBits™ is an open-source project supporting the adoption of blockchain technology by enterprises. The technology enables enterprises to tokenize assets on the decentralized...
The blockchain based platform - Totalizator. The goal of this R&D project was to validate the possibility of using blockchain technology in order to create an objective...
The Virtual Console is the graphics space that actually allows you to control your light shows during live events. It visually displays a number of so called widgets and...
PoolParty app allows increasing your popularity on Instagram by sharing links to the community of users, that will like, share and follow such links.
My Uber app allows everyone with a car to join the community of uber drivers within a couple of clicks - the company will take care of everything else. My Uber provides support...
This system empowers traders with the possibility to quickly analyze cryptocurrency market information.
This system provides a complete omnidirectional view for armored vehicles crew (transparent walls effect) and the possibility to receive necessary data and interactive tips...
BuzzShow is a video social media network which incorporates the blockchain technology in a reward-based ecosystem. The platform offers full decentralization and a unique social...
ZaZa is an expert in online learning and education abroad that helps its clients to get the highest quality services for quite affordable prices. They bring together native-speakers...
PrintBI has the largest and most detailed database of printing companies worldwide, powered by advanced technologies and...
Tell us how we can help you.