Banking on mobile phones

Like many students in their last year of studying, I am stuck wondering what I want to do with my life. It is only August and the panic has already set in for next year. Although I am terrified, there are plans already being made. One of them concerns my mobile phone. Next year, I am finally able to make my own money and of course spend it. With this in mind, my plan is to do all my banking via my mobile phone. Nowadays, mobile phones provide the perfect opportunity for this.

This would be very convenient for me as I am hardly left alone without my mobile phone and when I am to busy, next year, attempting to be a real journalist, I can use my mobile phone to do my banking on the go. I can bank wherever I am and whenever I want. As of now, I am still trekking to the bank to draw the cash out from the ATM. Although I have been following this method for years, it can get a bit tedious. Using my mobile phone seems like a much better option.

What is wonderful about your mobile phone is that it can be your very own ATM. However, not only can you do banking, you can also pay for virtual items via your mobile phone and buy online items such as music downloads. These purchases can then be charged to your mobile phone bill.

Payments via the internet can be so much easier than going to the shops to purchase your items. Your mobile phone can also act as a debit card. It takes the payment right out of your checking account. For example, you can pay for on-site items using your mobile phone as a card.

Text messages
Text messages are also popular for banking purposes. For example, you can receive alerts from your bank via text messages. The bank is able to inform you on what payment is due and so on. Two-way messaging is also to enable bank users to make transactions or request an account balance enquiry.

Furthermore, one-time passwords (OTP) can be issued via text message. OTPs are requested by users each time they want to carry out transactions using their mobile banking interface. When the request is received the password is sent to the users’ mobile phone via text message which then expires once it is used.

There is also mobile banking applications developed today which allows you to use your mobile phone for banking, transfer of funds and so on. Banks such as FNB provide a quick and easy way to get connected on your mobile phone. Anyone on any network with any mobile phone can use their mobile phone for banking purposes.

Rica could affect banking
My one concern, however, is the Communications and Provision of Communication Related Information (Rica) Amendment Bill implemented in South Africa. Mobile phone operators have to identify and register mobile phone users. This new law could prove a hindrance to mobile banking. It will no doubt affect people and companies in South Africa who would like to increase financial services by using their mobile phone. This is due to the barriers put in place.

There is also the issue of fraud. Is mobile phone banking really safe enough to implement and use? Mobile banking has become extremely popular. It has been predicted that 800 million people will use their phones to access banks and payment services by 2011. It is difficult not to implement mobile banking.

It is, therefore, important for banks and mobile operators to safeguard people from fraud via mobile phone banking and payment services. Regardless of these issues, I still plan to use my mobile phone for banking purposes and purchasing online items.

Thanks to Pavel Rybin for the picture. Follow Pavel Rybin's phototream to view more images.