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What is mobile banking? Explanation in 4 chapters

Przemysław Pala

Sales specialist

Andrzej Puczyk

Head of Delivery

What is mobile banking?

Mobile banking is remote banking through an application installed on your phone, computer, or tablet. While mobile banking in the era of SMS notifications had a reduced functionality, the development of technology has gone so far that you can use almost all the offerings of financial institutions.


The emergence of GPRS, 3G and 4G networks contributes to its growth. With them, the financial institution’s application works quickly. The high-speed network allows paying for various goods and services through the phone.

Mobile banking applications were adapted to the screens of modern smartphones. They can work with operating systems of mobile devices. Customers appreciated the development of voice identification, the ability to create payment templates with the camera, high-speed transmission of receipts, and payment notifications by email or via messenger.


How to activate and deactivate the service

If a citizen has already become a bank client, i.e., he has been issued a bank card and opened an account, he can install the application of the selected financial institution on his smartphone. To do this, it is necessary to download the application and go through the registration procedure.

Each credit organization has its own stages of registration. In some companies, it is sufficient to complete the procedure via the Internet, while in others, it is necessary to come to the office with a passport and fill out a form.


Some financial companies allow you to connect to mobile banking through an ATM. In this case, you do not need to visit a bank office.

If you log in through your smartphone, you will need to enter your card number or scan the front of your card after downloading the app. After that, the program will ask you to enter your password, repeat it, and then get access to the financial company’s services. You may also receive an email notification about the opening of mobile banking.


Advantages and disadvantages of using the bank’s mobile app

Smartphones have become a constant companion of man, so it is not surprising that a large number of services are optimized for them. Communicating, watching news and videos, sending and accepting documents are available in a few clicks. Banking operations are in step with the times, making life much easier. There are several advantages of apps for compact devices.


  • There are no fees to work with the accounts. Consumers can transfer money, open deposits, and buy foreign currency without additional costs. Transaction notifications are stored in the app.
  • Ease of use. The program’s interface is straightforward, the menu is conveniently located, and buttons and sections are signed. The program itself has an assistant for finding the necessary service
  • Quick response time. Smartphones and SIM cards allow a few minutes to make a payment, know the account balance, and exchange currency. You won’t have to find a different workplace to access the Internet or visit a bank office.
  • With the application, a person can pay cellular communications and utility bills and apply for a loan on the card. Transfers to financial companies are available. He can activate auto-payment for utilities. At the same time, a consumer will receive notifications about transactions on the account.
Remotely, the client can apply for a new bank card, open an investment account, or buy currency or precious metals. He receives account statements by notification and can deposit and withdraw money from the deposit. The consumer also has the right to block the card if it is stolen or lost.



  • A cellular connection is needed. If the subscriber is out of range of the network, it will not be possible to use the program on the smartphone.
  • Lack of a smartphone. Losing it will leave the owner without communication and the banking program. Now his personal finances may be available to third persons. Block the bank in time and save money from being written off.
  • Not the full functionality. Most of the card’s features are available, but some of them are limited.


How to use the app without risk

The security of the mobile banking service is achieved in several ways. The confidentiality of using the program is checked through the SIM card. If you decide to change it, the device will not receive notifications from banks for 24 hours. This is how the operator checks to see if scammers are changing the SIM card.


If you fear the security of financial transactions through your smartphone, follow a few recommendations:

  • Some users set the same passwords for all banks. This should not be done because the device can be hacked by picking a cipher. It will be easy to do if it is identical to all programs.

  • Install biometric protection. You can log in to the banking program using your fingerprint or facial identification. This type of protection will prevent fraudsters from cracking your password and obtaining a PIN for your account.
  • Don’t log into the app through public Wi-Fi networks. Using them threatens violations from wifi owners and from other Wi-Fi users. It’s also dangerous to access your bank account from unfamiliar gadgets. Another device may be connected to a program capable of intercepting characters. This can give fraudsters access to your password.
  • Don’t trust suspicious links. Be wary of emails and notifications from a financial company linked to online banking. It will never send such messages.



Difference from online banking

To use online banking, you must use a browser to access your personal account on the financial institution’s website. The user does not need to download an application to their mobile device. A bank account can be opened from any gadget connected to the Internet. It is most convenient to use equipment with a large monitor – a laptop or a desktop computer. It is a considerable option for elderly people who don’t use smartphones and need bigger screens to manage their financial responsibilities. 




Neontri is a technology company that creates mobile apps for banks and financial institutions so check our technologies or other articles to get to know more:

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