Understanding the Differences Between Net Banking, Mobile Banking, and Internet Banking
When it comes to banking services, the terms 'net banking,' 'mobile banking,' and 'internet banking' are often used interchangeably. However, these terms can refer to different aspects of these digital banking services. Here’s a comprehensive breakdown of each:
1. Internet Banking / Net Banking
Definition: Internet banking, also known as online banking, refers to banking services that are accessed via a bank’s website on a computer or laptop. This form of banking allows customers to manage their accounts, view account balances, and transfer funds without ever physically going to a branch.
Features:
View account balances and statements Transfer funds between accounts Pay bills Apply for loans or credit cards Manage investments2. Mobile Banking
Definition: Mobile banking refers to banking services that are accessed via mobile devices such as smartphones or tablets, typically through a dedicated app.
Features:
All functionalities of internet banking, often tailored for mobile use Mobile check deposits Location-based services for finding nearby ATMs Push notifications for transactions or alerts Enhanced security features like biometrics, fingerprint, or facial recognitionSummary
Internet Banking / Net Banking: Both refer to banking services accessed via the internet on computers. They are largely interchangeable and offer a wide range of services.
Mobile Banking: Refers specifically to banking services accessed via mobile devices, providing a more user-friendly and on-the-go experience. Many banks now offer integrated services that allow customers to switch seamlessly between internet and mobile banking, providing a comprehensive banking experience.
Top Trends in Mobile Banking
As mobile banking continues to evolve, several trends are shaping the future of this sector. Let's explore some of the most notable trends:
1. Elimination of ATM Cards for Withdrawing Cash
One of the most popular future trends in mobile banking is the trend towards Cardless ATMs. Banks are already implementing this feature, where users can withdraw cash from ATMs without the need for a card. Users can log into their banking app to initiate the transaction. According to a report by Small Business Trends, around 70,000 banks in the U.S. are expected to offer cardless withdrawals in the future.
2. Biometric Authentication for App Security
To enhance security and protect financial information, mobile banking apps are increasingly relying on biometric authentication. Instead of traditional PINs or passwords, users can use fingerprint or facial recognition through their smartphones. This trend is expected to grow as more devices become biometric-compatible.
3. AI-Supported Customer Service
The integration of Artificial Intelligence (AI) in mobile banking is another significant trend. Many banking apps are now using AI-driven chatbots to provide faster responses and automated solutions. These chatbots can handle basic banking queries, enhancing user experience. The adoption of AI in mobile banking is expected to increase, playing a crucial role in the development of AI technology in the sector.
4. Seamless KYC Verification
A future trend in mobile banking involves seamless Know Your Customer (KYC) verification, which can be accomplished through an ABCD verification process. This process includes collecting personal information through AI and cloud technologies, securing this data with blockchain, and using AI to generate reports on user eligibility for financial services.
5. Enhanced Mobile Apps for Banking Activities
To stay competitive, banks are continually enhancing their mobile banking apps. Many banks have shifted their focus to mobile apps over their websites, as apps offer a more convenient and secure way for users to perform financial transactions. As a result, banking apps are becoming more integrated with everyday banking activities.
6. Convenient Debt Management
Mobile banking is also revolutionizing the way users manage their debts. Top financial apps like Wally and Pocket Guard help users breakdown their expenses and suggest convenient ways to pay back debts. This trend is expected to continue, making managing finances more accessible and user-friendly.
7. Voice Banking Facility
The integration of voice commands in mobile banking is another emerging trend. Banks are using technology like Google's voice commands to enhance app functionality. Voice commands can also add an extra layer of security, with users verifying their identity through voice before accessing sensitive information.
Additional Mobile Banking Statistics
Understanding the mobile banking market requires insights into current trends. Here are some key statistics to provide a better understanding:
According to a 2018 survey by Statistica, 69.3% of U.S. mobile banking users are millennials. Currently, there are approximately 57 million mobile banking users in the U.S. About 86% of U.S.-based mobile banking apps offer bill payment services. Statista reported that global mobile payments touched approximately 760 million users in 2020.Final Thoughts
As mobile banking technologies continue to advance, users of different age groups are adapting to this trend. Mobile banking is providing a more convenient and hassle-free way to manage finances, and its growth shows no signs of slowing down. With 57 million mobile banking users, the banking app sector is expected to expand further. Ensuring the safety and security of these apps is also becoming increasingly important. Therefore, this growing market presents a significant opportunity for individuals interested in a career as a financial or banking app developer.