1. Introduction
  2. Mobile banking
  3. Concept of mobile banking
  4. Challenges and Limitations of Mobile Banking
  5. Current Limitation of Mobile Banking


In line with international trends, the banking business has been undergoing tremendous changes. The primary step within the method biological process was the gradual deregulation of the monetary sector. Then, the introduction of automatic teller machines (ATMs) was thought about because the 1st and most visible piece of proof of the rising electronic banking. Consecutive impending step during this method biological process inevitably seems to be mobile banking (M- banking). The employment of a movable to conduct payment banking transactions (M- banking) is at an early stage in a very range of developing countries. As a result of mobile banking uses the present chop-chop increasing movable infrastructure, it’s the potential to be deployed chop-chop and affordably to expand access to monetary services among unbanked individuals. Let’s see the challenges and limitations of Mobile bank

Mobile banking

Mobile Banking (MB) may be a mobile monetary service through movable. It refers to the employment of a movable or different cellular device to perform banking tasks get through from the information processing system, like observance of account balances, transferring funds between accounts, bill payment with locating an ATM. Keeping affiliation with the worldwide technological changes, the banking sector of this country has been undergoing a motivating amendment throughout the last number of years.

Concept of mobile banking

The banking and monetary services with assistance of mobile telecommunication devices refer to Mobile banking. The scope of offered services could embrace facilities to conduct bank transactions, administer accounts, and access tailor-made data. Within the broader sense, mobile banking is that kind of execution of monetary services within the course of that – among an electronic procedure – the client uses mobile communication techniques in conjunction with mobile devices. Mobile Banking may be aforesaid to contain 3 inter-related ideas viz. Mobile Accounting, Mobile Brokerage, and Mobile monetary data. Mobile Accounting is featured as transaction-based banking services that revolve around a checking account and are availed as mistreatment mobile devices but not all Mobile Accounting services. In simple words, the Mobile Accounting is defined as “availment of account-specific banking services of non-informational nature”.

Challenges and Limitations of Mobile Banking

There are some challenges in developing refined mobile banking are:

  • Telephone operability there is an oversized range of various movable devices and it’s an enormous challenge for banks to supply mobile banking answers on any variety of devices. A number of these devices support Java American state et al. support SIM application tool kits.
  • Security of economic transactions, being dead from some remote location and transmission of economic data over the air, is that the most complex challenges that require to be self-addressed conjointly by mobile application developers, wireless network service suppliers, and also the IT departments of the bank. The subsequent aspects got to be self-addressed to supply a secure infrastructure for monetary dealings over wireless network:
  • Physical a part of the hand-held device offers for safer transactions over-air
  • If the device is purloined, the hacker ought to need a minimum of ID/Password to access the applying.
  • User ID / secret authentication of bank’s client.
  • Encryption of the information being transmitted over the air.
  • Encryption of the information which will be held on in device for off-line analysis by the client.

One-time passwords (OTP) are the most popular tool used by monetary and banking service suppliers in order to prevent fraud activates against cyber fraud. Rather than hoping on ancient memorized passwords, OTP is requested by customers on every occasion they require to perform transactions victimization the web or mobile banking interface. Once the request is received the secret is shipped to the consumer’s phone via SMS or hardware tool. The secret is expired once it’s been used or once its regular life-cycle has expired.

Application distribution thanks to the character of the property between the bank and its customers, it’d be impractical to expect customers to frequently visit banks or connect with an internet website for the normal upgrade of their mobile banking application. It’ll be expected that the mobile application itself check the upgrades and updates and transfer necessary patches.

Current Limitation of Mobile Banking

  • Mobile Banking offers non-checking restricted purpose account solely.
  • The general public hasn’t enough plans regarding mobile banking nevertheless.
  • The customer with the bank account has desires an additional account for mobile banking.
  • The customer has the convention and mobile bank account both, the cannot access the standard account through a mobile account.
  • Mobile banking is getting used for fund transfer primary. The customer doesn’t keep a deposit for long period.
  • Mobile banking has no numerous deposit schemes as of standard banking nevertheless.
  • Mobile banking has no investment/loan schemes nevertheless.
  • The information is transferring through a 3rd party cellular network, thus there’s a security threat.
  • Mobile bank has no interbank fund transfer facility nevertheless.

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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