Since the advent of wireless technology and cell phones, the processes that are used to use mobile phones have changed dramatically. Nowadays, it is assumed that nearly 15 million citizens in the US make use of mobile phones and the numbers are expected to touch 90 in the forthcoming five years. In the markets of Europe, nearly 10 million people make use of mobile phones and it is assumed to touch 115 million in some years. Using mobile banking proposes you many fascinating and incredible advantages to conduct banking in different ways. Amongst the topmost mobile phone companies, different banking business models do exist.
The term “mobile banking” does not indicate any particular technology but this term is broadly used to discuss various methods to use your mobile phone for performing different banking jobs, like transferring funds, checking balances, and making payments. The Malaysia mobile banking is expected to overtake internet banking transactions. There are countless mobile users who bank through text messaging and many users access their online banking site through their Smartphone browser. There are some who use bank-specific applications that have been developed for the mobile phones. No matter which method you select, the general trend of mobile banking is growing in every demographic group.
The groups that use mobile banking
The younger generation tends to adopt banking more through their mobile phones compared to the older people. Nearly 38% of people who are aged between 18 and 29 years do mobile banking and only 8% people who are above 60 years of age. Mobile banking increases in those families who have got a higher household income which is more than $100,000. Only 16% of people use mobile banking who have got an annual income of less than $25,000. Education too plays an important role in mobile banking. About 37% of college graduates make use of mobile phone whereas less than 6% users are those who don’t have a high school education.
Benefits of mobile banking
Banking via mobile can propose different advantages regarding banking options and convenience. The vital benefit of this type of banking is the capacity to establish a connection from any part of a nation. In comparison to traditional online banking, the versatility of mobile banking is unmatched. Members who get engaged in mobile banking receive text messages linked to forthcoming financial obligations and transactions and due to this, account holders manage to avoid late payments plus service charges from any part of the globe.
Mobile banking in Malaysia
Still, in Malaysia mobile banking is in its early stage and the cost/transaction is a little higher compared to internet banking. But, additionally, the trend of mobile banking will catch up in this country soon and there is a requirement for banks to put sufficient infrastructure for keeping updated with these growth factors. In Malaysia, the costs of ATM is comparatively lesser compared to the branch costs whereas the cost of internet banking is the least. It is assumed that mobile banking costs could drop when the adoption rates rise.