What is phone banking
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Mobile Banking is simply the use of mobile phones and accompanying mobile apps to carry out banking transactions.
Banks and credit unions can offer mobile banking services through the use of a mobile site, or, more popularly, through a custom mobile app. This mobile app connects to the financial institution’s servers and allows the user to check their balance, transfer funds, open or close accounts, order debit or credit cards, cash checks, and more.
The mobile banking field continues to grow as more and more customers prefer the freedom to access banking services from the comfort of their mobile phone. This freedom of location is arguably the biggest advantage of mobile banking. Additionally, many mobile banking apps now include face-to-face, mobile-video technology which allows customers the ability to have real-time, face-to-face, mobile-based conversations with representatives from their financial institution.
Advantages of mobile banking, from both the perspective of the bank and customer, include:
Decreased infrastructure costs - Banks do not have to build or maintain as many physical branches if more customers carry out banking via their mobile phone. For the financial institution, this means a reduction in overhead expenses. For the customer, this likely means savings that are passed on from the bank.
Efficient utilization of experts and human capital - Financial institutions can centralize their limited pool of banking and financial experts and use these experts to service customers no matter where customers are located. For the financial institution, this means maximum utilization of high-cost human capital. For the customer, this means more access (and often around-the-clock access) to banking and financial experts from the comfort of the customer’s home.
Document sharing and assistance with other digital banking services - Mobile banking technology now enables mobile, document sharing and screen sharing of the customer’s mobile device. This allows customers and bank representatives to conduct real-time, document review and real-time, personalized support with the financial institution’s mobile app. For the financial institution and the customer, this means that more complicated, nuanced transactions that include side-by-side document review can now be done from anywhere the customer is located.
Enhanced security over telephone banking - Mobile phones now often include face-recognition technology, fingerprint scanners, and even iris scanners. This biometric data helps the bank ensure the “customer” is actually who they claim to be, and this biometric data provides more security and protection for customers than simple telephone banking passwords or requests for birth-date confirmations can provide. For both the financial institution and customer, this means fewer instances of compromised data and fraud.
Increase in accessibility to underserved customer segments - Mobile banking allows those with difficulty in accessing branch locations the ability to enjoy banking services. This includes individuals with physical-mobility limitations or people who live in rural locations, far from a physical branch. Additionally, mobile video-banking can provide individuals who need a sign-language interpreter with easier access to banking services. Using mobile video-banking, sign-language signing customers can be connected with an interpreter over live video.
Banks and credit unions can offer mobile banking services through the use of a mobile site, or, more popularly, through a custom mobile app. This mobile app connects to the financial institution’s servers and allows the user to check their balance, transfer funds, open or close accounts, order debit or credit cards, cash checks, and more.
The mobile banking field continues to grow as more and more customers prefer the freedom to access banking services from the comfort of their mobile phone. This freedom of location is arguably the biggest advantage of mobile banking. Additionally, many mobile banking apps now include face-to-face, mobile-video technology which allows customers the ability to have real-time, face-to-face, mobile-based conversations with representatives from their financial institution.
Advantages of mobile banking, from both the perspective of the bank and customer, include:
Decreased infrastructure costs - Banks do not have to build or maintain as many physical branches if more customers carry out banking via their mobile phone. For the financial institution, this means a reduction in overhead expenses. For the customer, this likely means savings that are passed on from the bank.
Efficient utilization of experts and human capital - Financial institutions can centralize their limited pool of banking and financial experts and use these experts to service customers no matter where customers are located. For the financial institution, this means maximum utilization of high-cost human capital. For the customer, this means more access (and often around-the-clock access) to banking and financial experts from the comfort of the customer’s home.
Document sharing and assistance with other digital banking services - Mobile banking technology now enables mobile, document sharing and screen sharing of the customer’s mobile device. This allows customers and bank representatives to conduct real-time, document review and real-time, personalized support with the financial institution’s mobile app. For the financial institution and the customer, this means that more complicated, nuanced transactions that include side-by-side document review can now be done from anywhere the customer is located.
Enhanced security over telephone banking - Mobile phones now often include face-recognition technology, fingerprint scanners, and even iris scanners. This biometric data helps the bank ensure the “customer” is actually who they claim to be, and this biometric data provides more security and protection for customers than simple telephone banking passwords or requests for birth-date confirmations can provide. For both the financial institution and customer, this means fewer instances of compromised data and fraud.
Increase in accessibility to underserved customer segments - Mobile banking allows those with difficulty in accessing branch locations the ability to enjoy banking services. This includes individuals with physical-mobility limitations or people who live in rural locations, far from a physical branch. Additionally, mobile video-banking can provide individuals who need a sign-language interpreter with easier access to banking services. Using mobile video-banking, sign-language signing customers can be connected with an interpreter over live video.
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