What is Mobile Banking?

mobile banking system malaysia 10 Feb

What is Mobile Banking?

The usage of a mobile device to conduct financial transactions is known as mobile banking. Some financial institutions, particularly banks, provide this service. Clients and users can utilise mobile banking to conduct a variety of transactions, which differ based on the institution.

With the introduction of cellular mobile applications, mobile banking has become more convenient. Clients may now check their accounts, read their bank statements, transfer funds, and even purchase prepaid services online.

mobile banking system malaysia

A Quick Overview of History for Mobile Banking

Mobile banking used to be done mostly via text or SMS until the advent and availability of mobile internet services in 1999; it was referred as SMS banking. Using the mobile internet via WAP technology, European banks have been on the cutting edge of mobile banking offerings. Before 2010, the most famous mobile banking products were SMS banking and mobile web. Mobile banking apps (apps) began to develop as smartphones running iOS or Android systems became more common. Customers were able to download banking apps with more sophisticated UI and greater transactional capabilities to their cellphones.

To present, many financial institutions employ SMS and mobile apps to keep their customers up to date on account activity, send out notifications about suspected fraud, and/or update and maintain service provision. A text message from a bank informing customers that their ATMs or applications will be unavailable for a period of time owing to system maintenance, or a verification text from the bank confirming a transfer made by the customers via the mobile app, are two examples.

Mobile Banking: Its Importance

Consumers can use mobile banking to obtain financial services from anywhere. Companies and business owners can now save time by processing payments or receiving monies from customers straight to their phone numbers via mobile applications. It is especially popular among small and medium-sized businesses (SMEs).

Banks can reduce operational expenses while retaining customer satisfaction by using mobile technologies. The ability for any bank’s client to use their app to seek service, like opening an account or even the capacity to plan debit orders or other payments from an app, provides for higher transactional volumes, which in turn drives business growth.

Mobile Banking Services Types

The following are the different types of mobile banking services:

  • Access to account details

Clients can visualise their financial accounts and statements by requesting a mini account statement, evaluate transactional and account history, track their term deposits, review and view loan or card remarks, access investment statements, and manage their insurance policies with some institutions.

  • Transactions

Clients can use transactional services to move funds between accounts at the same or different institutions, make self-account transactions, pay third parties payments, and make purchases in conjunction with other apps or prepaid service providers.

  • Financial investments

Clients can use investment management services to monitor their accounts or get a real-time picture of their investments.

  • Assistance services

Clients can use support services to follow up on the status of their loan or credit requests, check up on their card queries, and find ATMs.

  • News and content

Content services give financial news as well as the bank’s or institution’s most recent offers.

For more information on the mobile banking system Malaysia, click here.

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