Q.
What is Mobile Banking and Internet Banking (June’13)?
Mobile
Banking: Mobile banking is a system that allows customers of
a financial institution to conduct a number of financial transactions through a
mobile device such as a mobile phone or personal digital assistant.
Mobile banking
differs to mobile payment's which involves the use of a mobile device to pay
for goods or services either at the point of sale or remotely, analogously to
the use of a debit or credit card to effect an EFTPOS payment.
The earliest
mobile banking services were offered over SMS, a service known as SMS banking.
With the introduction of smart phones with WAP support enabling the use of the
mobile web in 1999, the first European banks started to offer mobile banking on
this platform to their customers. Mobile banking has until recently (2010) most
often been performed via SMS or the mobile web.
Internet
banking: Online banking (or Internet banking or E-banking)
allows customers of a financial institution to conduct financial transactions
on a secured website operated by the institution, which can be a retail bank, virtual
bank, credit union or building society.
To access a
financial institution's online banking facility, a customer having personal
Internet access must register with the institution for the service, and set up
some password (under various names) for customer verification. The password for
online banking is normally not the same as for [telephone banking]. Financial
institutions now routinely allocate customers numbers (also under various
names), whether or not customers intend to access their online banking
facility. Customer’s numbers are normally not the same as account numbers,
because number of accounts can be linked to the one customer number. The
customer will link to the customer number any of those accounts which the
customer controls, which may be cheque, savings, loan, credit card and other
accounts. Customer numbers will also not be the same as any debit or credit
card issued by the financial institution to the customer.
To access online
banking, the customer would go to the financial institution's website, and
enter the online banking facility using the customer number and password. Some
financial institutions have set up additional security steps for access, but
there is no consistency to the approach adopted.
The
common features fall broadly into several categories
A bank customer
can perform non-transactional tasks through online banking, including -
- Viewing account balances
- Viewing recent transactions
- Downloading bank statements, for example in PDF format
- Viewing images of paid cheques
- Ordering cheque books
- Download periodic account statements
- Downloading applications for M-banking, E-banking etc.
- Funds transfers between the customer's linked accounts
- Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers
- Investment purchase or sale
- Loan applications and transactions, such as repayments of enrollments
- Register utility billers and make bill payments
References:
http://en.wikipedia.org/wiki/Internet_Banking
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