Is mobile banking and SMS banking different?
SMS banking' is a form of mobile banking. It is a facility used by some banks or other financial institutions to send messages (also called notifications or alerts) to customers' mobile phones using SMS messaging, or a service provided by them which enables customers to perform some financial transactions using SMS.
The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet. Many banks nowadays have their mobile apps for mobile banking.
It allows customers to conduct financial transactions through a mobile device, such as a smartphone or tablet. SMS (Short Message Service) is a popular means of communication that has gained widespread use in banking and financial institutions.
- Mobile banking over mobile applications (for smartphone; SBI Yono and iMobile by ICICI Bank, etc.)
- Mobile banking over SMS (also known as SMS banking)
- Mobile banking over Unstructured Supplementary Service Data (USSD)
Telebanking is when you perform banking transactions over a phone call while in mobile banking you use a software/interface on your mobile device to access your account and make a transaction.
So, is Mobile Banking Safer than Online Banking? Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data.
Risks of mobile banking
It's difficult to find software or technology that is entirely risk-free, and that holds true for mobile banking apps. The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system.
Cons: Security: SMS-based mobile banking is not as secure as other types of mobile banking, such as mobile apps. This is because SMS messages are not encrypted, which means that they can be intercepted by hackers.
Marketing and promotions: Financial institutions may use SMS to send promotional offers and special deals to customers. Mobile payments: bank SMS can also be used as a payment method. Some mobile wallets, like Google Wallet and Venmo, use SMS to send and receive payments.
But what if you're an Android user? The risk is slightly higher for you. But that doesn't mean your data is automatically prone to being leaked. Incidences of moderate-to-high risk are rare for all mobile users.
What is an example of mobile banking?
Examples can be a text message from a bank, notifying users that their ATMs or apps will not be accessible during a particular time period due to system maintenance, or a confirmation text from the bank regarding a transfer carried out by the client via the mobile app.
| Banks | Software Application | UPI |
|---|---|---|
| DCB Bank | DCB Bank Mobile Banking App | BHIM DCB Bank UPI |
| State Bank of India | YONO, SBI Anywhere, SBI Buddy, State Bank Freedom App | BHIM SBI Pay, Aadhaar SBI |
| Bank of Baroda | M-Connect plus | BHIM Baroda Pay |
| Allahabad Bank | empower | BHIM ALLbank UPI |
- SoFi Checking & Savings: Best for combo checking and savings account.
- Discover: Best online banking app.
- Chase: Best full-service banking app with in-app support.
- U.S. Bank: Best for competitive selection.
- Chime: Best modern app.
- Wells Fargo: Best bank app overall.
Mobile banking is an online banking service provided by banks to their existing customers to access their banking account for carrying out a myriad of transactions using a mobile device, including smartphone and tablet, whenever users are connected to the internet.
Is Mobile Banking Safe on iPhone / Android Phone? Mobile banking can be safe on both iPhone and Android phones, it has built-in security features, regular security updates to protect you against malware or unauthorized access but it also has potential risks depending on how informed you are.
Under Mobile Banking, choose the option 'Registration', enter your mobile number and choose „Yes‟. When the number is displayed again over the ATM screen, choose „confirm‟ and collect the transaction slip confirming the registration. You will receive a SMS regarding activation of your account.
- Risk of hacking and identity theft.
- Tech issues or bugs can affect usability.
- Some mobile banking apps charge fees.
- Features aren't the same for all apps.
Connecting to a mobile cellular network is definitely safer than using Wi-Fi. This is because cellular networks are encrypted, whereas many Wi-Fi connections are not.
Some added advantages to banking on your phone include: Easy access to card manager features like changing your PIN, setting travel notifications and freezing/unfreezing your card. Deposit checks remotely. Send money to people you trust.
Even "innocent" services like Android Accessibility Services can be used to hack you. Finally, never install banking apps from third-party sites, as they're more likely to contain malware. While official app stores are by no means perfect, they're a lot safer than a random website on the internet.
What cannot be done through a mobile banking app?
However, one thing that cannot be done through a mobile banking app is withdrawing cash. To withdraw cash, you would need to visit an ATM or a bank branch.
When you're using an unsecured or public network, it's best to stick to activities that don't involve sensitive data. If you need to access your mobile banking or another financial app, turn off your Wi-Fi while you do. You'll use up some of your data, but you'll be much more secure.
Disadvantages: SMS messages are limited to 160 characters per message. SMS messages do not support rich media like photos or videos. SMS messages can be expensive if you are sending them to international contacts.
The potential risks and vulnerabilities in SMS security include SMS interception during transmission, SIM swapping, smishing, automated SMS toll fraud, social engineering, sender ID spoofing, malware distribution, lack of encryption, and carrier vulnerabilities, among others.
Where does SMS currently stand? In 2023, SMS is still the default choice for communication between phone users. Maybe not because it is a better way to communicate, but surely because it is simple and everybody has access to it.
