The Disadvantages of Mobile Banking

The advancements in technology have seen the rise of more convenient ways to conduct business as well as day-to-day banking. A major advancement has been in the banking industry where mobile phones being used to provide services. Consumers have quick access to their bank accounts with all transaction details.

Cost

Mobile banking often comes at a higher price than regular banking. There is an extra charge for using the service. In most cases you will need a mobile device that is compatible. This often means investing in a smart phone. Other charges include cost of buying the software and paying to receive and send text messages and data. 

Availability

Mobile banking is not available in every bank. Many banks do not provide this service and those that do have it on a limited scope. The fact that not all mobile devices are compatible, means that the service is available only to those who have access to a smart phone. Without a smart phone all you can do is check you account balance and other basic services that are information based.

Security

Security is one of the major hurdles in the mobile banking sector. Consumers are still wary of the idea of conducting financial transactions over the phone. One of the main reasons this is an issue is because the mobile phone can easily get lost or stolen, leaving the user vulnerable to hackers. There is also the issue of the password or ID being hacked by a third party. Banks have tried to counter these problems by introducing smart cards with enhanced security features. There are also encryption protocols that ensure any data that is received by a third party is useless to them as they are not able to translate the data.