Our mobile phones have become a staple in our everyday life, and more companies are now trying to harness that power to offer their customers more functionality and flexibility by being able to transact with them via mobile devices. Financial institutions everywhere are rushing to build their mobile banking solution because they believe that mobile banking will eventually be what online banking is today. With all the money being spent to create these mobile solutions, is it really worth it? Critics say they don’t see where mobile banking will be a profitable investment, but it hasn’t seemed to slow anyone down. Does mobile banking matter to you? Let’s examine the three main mobile solutions that banks are implementing today, and look at the pros and cons of each.
- Mobile browser
- Text messaging
- Smart application
Mobile browser
This solution allows users to log into their banks via a mobile website that is a slimmed-down version of their normal website. While functionality varies depending on which bank you belong too, they usually offer the major everyday banking services such as checking your account balances, transferring funds, and making bill payments. Usually your login ID is the same as your online banking login, so you get the added security of having to log in with your password before being able to do anything. Bank of America, Wells Fargo, and Wachovia are a few of the major banks that have mobile websites.
Pros -Familiar format, intuitive to use, added security with login, allows access from any phone with internet access.
Cons - Requires a data plan from your provider, behavior of mobile browsers can vary greatly, can be slower to use than other solutions
Text messaging
The text messaging solution lets users make financial transactions via SMS text messages. You have to sign up online at the bank’s website, and specify your phone number you’d like to register for the service. Once registered, you are able to send text messages to a specific number and/or id with predetermined commands, and your bank will send you a text message back with a response. The security of the solution is based on the phone that you are using, so safeguarding your phone becomes a high priority.
Pros - Less typing to make transactions, text messaging plans are usually cheaper than data plans, text messaging has become a popular way to use mobile devices.
Cons - Security concerns since there is no login, can only access service via one phone, commands can be confusing, need a text messaging plan with your service provider
Smart application
Smart applications are lightweight programs that you download and run on your mobile device (or smart phone/device). Smart apps are basically like desktop applications for your mobile device. They usually offer greater speed and added security that can be contained within the specialized application. This solution requires a registration process where you specify a phone, and get the link to download the application. Some applications have a PIN number login security model, so instead of having a username and password, the security is determined by a predetermined PIN number.
Pros - More security than text messaging, faster access than mobile browsers, a few established third party companies that supply a standardized application.
Cons - Less secure than a username and password format, can only access service via one phone, third party solutions offer a less customizable experience, downloading and setup of application can be confusing to the average user.
I don’t think there is much of a question that mobile banking is going to grow more into the norm as time goes on, so it’s understandable why banks are trying so hard to get their solutions out there to their customers. New mobile devices are coming to the market every day with more functionality and technical prowess. Not to mention that wireless service providers are pushing to give their customers more bundled features to their service plans to include text messaging and internet data access. Only time will tell which of the three solutions (or any new ones that may come along for that matter) will win out and become the solution of choice, but there’s no question that mobile banking is something that you might want to consider when choosing a bank. Even if you don’t use any mobile banking solution today, don’t be surprised if you start using one sooner than you think.
