Mobile banking VS Internet banking

Currently, customers of most large banks manage their accounts through mobile applications. Already developed such applications that without plastic cards allow you to withdraw money from ATMs.

In 2012, the turnover of payments through mobile banking in America amounted to 8 billion dollars, by 2020 this turnover will reach 29 billion dollars. Will mobile banking be more popular than internet banking? Indeed, in recent years there has been a boom in the introduction of new technologies of remote banking services in domestic credit organizations.

Given the intensification of the struggle for the clientele and markets for financial products, most credit institutions are not limited to only one channel of remote banking services, building up “technological muscles”.

Continuing the evolution of Internet banking systems, mobile banking begins its development.

Given the number of mobile phones and smartphones in America, this type of remote banking can rightfully be considered the most promising among the population at the moment. And the community of used technologies and communication channels in many ways allows us to consider mobile banking as one of the varieties of Internet banking.

At the same time, one should not forget that the introduction of electronic banking systems leads to a not always noticeable shift in the risk profiles of credit organizations, which many of them are not prepared for in practice. The situation is aggravated by the fact that often banks are dependent on third-party companies-providers, the telecommunication systems of which credit institution specialists may not have the necessary information.

The consequence of this is the large losses of credit organizations and their customers due to computer fraud and theft, network and virus attacks, errors and information security incidents. All this at least increases the requirements for the level of qualification of information security services and ICS banks.

Today, mobile devices are an integral attribute of almost every one of us. The functionality of mobile devices is constantly expanding, while along with traditional applications specific to mobile device users, commercial banking applications are in high demand.

In my opinion, the dynamics of increasing the demand for mobile banking applications against the background of increasing mobile device penetration, as well as increasing the financial literacy of the population, the presence of tariff barriers to certain transactions in bank branches will continue.

At the same time, this development trend will not have a significant impact on reducing the interest of the population in Internet banking, since traditionally mobile applications contain a popular, but incomplete list of possibilities for calculating and managing funds remotely.

It is worth noting that the existing restrictions contribute to a higher level of comprehensibility of the functionality of mobile applications and the possibility of their use on the go.

This, in turn, allows us to conclude that the features of each of the areas correspond to a specific model of client behavior, to his needs at a particular point in time.

As a result, mobile banking and Internet banking are not mutually exclusive and do not compete, but rather complement each other, ensuring the availability of banking services for the population in accordance with modern life requirements.

Mobile banking will surpass Internet banking in popularity, and this will happen in the foreseeable future, as most experts in this field believe. Already, the share of all customer transactions through a mobile bank in some banks is about 30% of the total number of operations. Moreover, this share continues to grow steadily.

Moreover, if earlier it was mainly operations for paying for mobile communications, now the proportion of operations that customers usually perform in the Internet bank is growing, for example, payments to another bank. USAA Routing number also can use This is not surprising, given the increasing capabilities of mobile phones, the proliferation of smartphones, and the significant development of mobile Internet. It is also important that the rhythm of life of a modern person is accelerating more and more – more and more often he needs tools to carry out banking operations on the fly.

It is not entirely correct to consider Internet and mobile banking as competing services. It is rather an evolution of banking services channels.

Until recently, a client, in order to make a bank transfer from his accounts, had to personally visit the bank’s office in order to give a corresponding order. As a result of the development of information technology, banks went beyond the walls of offices, making remote customer service possible.

Moreover, in conditions of total globalization and constant lack of time, such changes have become vitally important. The result was the heyday of banking Internet services, convenient for both customers (the ability to obtain banking services without leaving home) and banks (lower transaction costs, reduced live queues in branches).

The development of microelectronics and mobile communication technologies has made possible the next step in this evolution. Today, a computer, phone, camera, video camera, and even a remote workstation fit in one small device.

As a result, the emergence of mobile banking applications was only a matter of time. Mobile banking is a service that makes banking services even more accessible and convenient for consumers. And perhaps the most interesting in terms of development prospects.

But this in no way means that the traditional channels for the provision of banking services will cease to exist, because each client chooses for himself what is most convenient for him.

Both types of electronic banking will be developed. Moreover, Internet banking will have more customers among legal entities, and mobile banking among physical ones.

The main attractiveness of the latter is due primarily to the desire of customers (especially the younger generation) not only to be always in touch, but also to be able to make small payments or pay for purchases without resorting to any other devices, that is, to act on the principle “my office is there, Where I am”.

Perhaps the only question that remains open is the provision of the necessary level of security, which is the main condition for customers to trust any type of remote banking service.

If banks can achieve such protection (including the tolerance of customers to use additional means of protection) so that thefts from “mobile” customer accounts are simply unprofitable for attackers, then the number of such thefts will be minimized.

Under such conditions, one can most likely expect that the growth in the number of customers of a mobile bank will be higher than that of Internet banking.

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