Types of Mobile Banking

Types of Mobile Banking

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Know the different types of mobile banking services offered by Indian Banks.

Key Takeaways

  • Mobile banking is classified into 3 types – App-based banking, SMS banking, & USSD Banking.
  • Mobile banking applications encompass the broadest range of banking services.
  • You can transfer funds, make investments and book FDs through app-based banking.
  • SMS banking enables you to get SMS alerts about account balances, mini statements, etc.
  • USSD services assist with fund transfers without internet-enabled smartphones.

The mobile banking facility allows you to manage almost all banking transactions via mobile devices. Do you want to know your account balance? Do you wish to transfer funds to your loved ones or check your latest transactions? You can access all this information by logging in to your mobile banking account. Let us assess the different types of mobile banking services available in India.

Mobile Banking Types

Mobile Banking Services are broadly classified into three types, based on the kind of banking functions you can perform through the platform. Here are the different types of mobile banking options.

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  1. Mobile Banking Via Mobile Apps

    You can download your bank’s mobile application on your internet-enabled smartphone to conduct banking services via your mobile app. This type of mobile banking involves all banking and non-banking transactions such as:

    • Access Your Account

      You can view account balances and statements, review any previous transaction, keep track of deposits and loan EMI transactions, invest in equities and mutual funds, check investment statements, etc. You can also get information on other add-on services.

    • Transfer Funds

      You can transfer funds to accounts in the same bank or different banks via NEFT, RTGS, IMPS or UPI. You can also use mobile banking to pay your utility bills, shop online, recharge your mobile and DTH devices, etc.

    • Make Investments

      You can open high-interest-bearing fixed deposits or recurring deposit accounts. You can buy and sell mutual funds, invest in shares, bonds, and other investment market securities, and manage your investment portfolio.

    • Avail Support Services

      These services include checking the status of credit or debit cards, checking ATM and branch locations, ordering cheque books, grievance redressal, etc.

    • Marketing

      Banks use mobile banking apps to advertise new products and services, and offer early-bird discounts to customers. You to get information about the banks’ latest offerings.

  2. Mobile Banking Services Over SMS

    SMS banking is another type of mobile banking facility. It is designed for account holders who do not have internet-enabled smartphones. You need to register your mobile phone number with the bank to enjoy SMS banking services. Under SMS mobile banking services, you get facilities like

    • Balance enquiry
    • Mini statements
    • Blocking of ATM-cum-debit card and credit card
    • Conducting enquiring about current interest rates and foreign currency exchange rates
    • Transferring funds between your Current and Savings Account.
  3. Mobile Banking via USSD

    Unstructured Supplementary Service Data (USSD), also known as feature codes or quick codes, is a communication system used by mobile phones for communication purposes. This mobile banking type does not require a smartphone or internet connection. The National Payment Corporation of India owns *99#, a USSD-based service in India. With USSD mobile banking, you can check account balance and mini account statement and transfer funds via account number, Aadhaar, or Mobile Money Identifier (MMID).

Final Note

You can choose your preferred type of mobile banking service based on the type of mobile phone you own. App-based mobile banking is the best option as it empowers you to track your account and conduct transactions in seconds.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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