Mobiles are set to be the future of banking, given our busy lives and increasing dependence on technology. India has around 900 million mobile phone subscribers, a rise of over 50 per cent from 2009-10. Further, the availability of Internet-enabled handsets across various price points has become the driving force behind an unprecedented use in mobile phones. There are now around 86 million active mobile Web users, growing 200 per cent year-on-year. Mobile banking is expected to hit new highs in 2015 with 300 million projected mobile Internet users.

The use of mobile phones for financial transactions makes banking convenient and saves time. For example, you can check your account balance while waiting in a billing counter to see if you should use your credit or debit card for the purchase. You can pay your bills instantly and securely if your due date is close. This way you don’t have to handle a lot of physical cash. You can also transfer money and monitor the availability of deposited funds while you are on the go. With mobile phones, you can do banking everyday, anytime, anywhere, thanks to the advanced in-built security features of apps.

The benefits

The trend of using mobile banking is increasing and will continue to do so because of its advantages over other banking channels.

● It’s a more convenient form of banking, offering easy access to your bank accounts, anytime and anywhere.

● It’s a dynamic mode. You get location-based offers (such as discounts on shopping from a nearby mall) and services (such as ATM & branch locator), all in real-time basis.

● The applications provide customers with a more comprehensive and personalised banking experience such as segment-specific offers and menu options.

● Users of mobile banking do not use Web browsers. So, these applications are more resistant to phishing scams triggered by malware attacks. These are further secured with mPIN and OTP for financial transactions.

Secure measures

Here is how you can keep your mobile banking experience secure:

● Set the phone on a mode that will require a password to switch on the handset.

● Avoid sharing your password, account number, PIN, answers to secret questions or other such information. Don’t save this information anywhere on your handset.

● Immediately inform your bank or mobile operator if you lose your phone. Once you report your phone lost or stolen, your carrier can disable it and your bank can shut phone access to your accounts.

● Consider installing a security software that detects and removes malware and lets you lock or delete data if the phone is lost.

● Never use your smartphone on a public Wi-Fi network to conduct mobile banking or other businesses involving user names, passwords or other personal information.

● Do not leave your mobile phone unattended during an open mobile banking session.

● Download apps only from trusted sources to avoid spyware that can transmit your phone conversations, messages or GPS coordinates to eavesdroppers.

Customers often wonder whether transacting over mobile is safe compared to Internet or branch banking.

Mobile banking is safe as it ensures authentication at two levels — the customer’s mobile number as well as the mPIN set by him/her. This insures the customer against theft or unauthorised use of the phone. As you do not share sensitive data until a successful login and authentication, hackers, too, aren’t a threat.

Also, security awareness campaigns are run by banks periodically to make customers aware of the potential threats and how to safeguard their mobile banking experience.

The author is president, retail banking, Axis Bank