Smartphones are the primary banking tool for many people, from millennials to baby boomers. Consumer interest in mobile banking began in 2007, and by 2009, more than 12 million people used mobile services. According to Frost and Sullivan, a global research firm, this number should climb to 45 million in 2014.
Mobile banking has many benefits over traditional and online banking including easy access, better security, and numerous smartphone applications. While online banking is convenient, Internet connections are not always available. Mobile banking provides account access from any location.
Functionality is the downside to mobile banking. Most mobile services are basic; they allow consumers to check balances and monitor account activity. Some financial institutions offer mobile bill paying and other features through mobile browsers and downloadable applications. For example, KAIKU mobile banking allows cardholders to send money to other KAIKU members.
Smartphone banking is a good way to augment online banking. More banks are developing mobile apps for the convenience of their customers, and mobile banking is safer than other channels including Internet banking. Moreover, banks currently do not charge a fee for their mobile bank services. However, consumers may have to pay a fee to the phone provider depending on their data plans.