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Fintech has made our lives easier and more secure with a number of automated services, including mobile banking. In the past five years, we have seen traditional financial institutions adopt mobile banking to attract and maintain its customers. This is largely due to millennials who have grown up using mobile devices. They are accustomed to using apps to manage almost every part of their lives, from diet to money management. Thus, the use of mobile banking is now part of people’s everyday financial transactions. There is fierce competition among banks to offer the most mobile banking services. But did you know that there are various types of mobile banking services?


  1. Mobile Banking over SMS — SMS stands for short message service; we know it as texting. This makes performing a banking task easy and quick, without talking or waiting for an app to load. It’s especially convenient for those who bank via a cellphone — not a smartphone. A smartphone allows you to run apps on it (e.g. Spotify and Facebook). A cellphone performs a limited number of tasks, such as making phone calls and texting. When using SMS, a person can send a text between cellphones, a PC or handheld phone to a cellphone. When texting your bank, the message is sent via radio waves, thus it’s important that safety measures are applied. For example, you should never text your entire bank account number and make sure that you delete text messages from your bank after you have read them. 
  2. Mobile Banking over USSD — When you don’t have access to the Internet or a smartphone, this is where USSD comes in handy. USSD stands for unstructured supplementary service data. According to tech website BGR, the interface is built by the National Unified USSD Platform. Communication is transmitted via a GSM network between your bank and the telecom operator. The message can appear on a handheld phone in black and white. It is primarily used by low-income families, especially in developing countries. 
  3. Mobile Banking over WAP — This type of mobile banking service uses wireless application protocol (WAP). It is used via downloading an app onto a smartphone. From the app, we can perform the same tasks as the other types of mobile banking systems as well as other services, such as fund transfer and an e-Passbook. Some banks may require a separate registration for mobile banking. 


As mobile banking plays a large role in our lives, it is important to know what it is, including the types of mobile banking services. These are different from the tasks (services) that can be performed using them. Fintech has revolutionized the banking industry (i.e. mobile banking) and will continue to make all financial services convenient and easy to use.