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MARKET ADVANTAGES OF
M-BANKING VS.
TRADITIONAL FINANCIAL
SERVICES
WENDY BAUER
M-BANKING DEFINITION
• MOBILE BANKING IS THE ACT OF DOING FINANCIAL TRANSACTIONS ON A
MOBILE DEVICE (CELL PHONE, TABLET, ETC.). THIS ACTIVITY CAN BE AS SIMPLE
AS A BANK SENDING FRAUD OR USAGE ACTIVITY TO A CLIENT’S CELL PHONE OR
AS COMPLEX AS A CLIENT PAYING BILLS OR SENDING MONEY ABROAD.
ADVANTAGES TO MOBILE BANKING INCLUDE THE ABILITY TO BANK ANYWHERE
AND AT ANY TIME. DISADVANTAGES INCLUDE SECURITY CONCERNS AND A
LIMITED RANGE OF CAPABILITIES WHEN COMPARED TO BANKING IN PERSON OR
ON A COMPUTER.
2 EXAMPLES OF AN M-BANKING
TRANSACTION
• AT TARGET PAYING FOR THE ITEMS AT CHECKOUT. INSTEAD OF PAYING FOR
THE PURCHASE WITH CASH, CHECK, DEBIT, OR CREDIT CARD. YOU USE YOUR
SMARTPHONE WALLET APP TO PAY USING NFC TO ELECTRONICALLY TRANSFER
YOUR PAYMENT. IT IS RECEIVED BY THE SAME MACHINE THAT RUNS YOUR DEBIT
OR CREDIT CARD. PAYMENT IS PROCESSED AND TRANSACTION IS COMPLETE.
• ORDER COFFEE VIA THE STARBUCKS APP AND PAY FOR IT VIA THE WALLET ON
YOUR STARBUCKS APP. YOU PULL INTO THE DRIVE THRU AT THE STARBUCKS
AND PICK UP YOUT COMPLETED ORDER AND DRIVE AWAY.
THE MARKET ADVANTAGES OF M-BANKING
• HIGHER CUSTOMER SATISFACTION
• REDUCED COSTS
• EASY CHARGEBACK PROCESS
• EASE OF TRANSACTIONS
• INCREASED TRAFFIC
3 BENEFITS/REASON WHY A CUSTOMER
WOULD PREFER M-BANKING OVER
TRADITIONAL BANKING
• UP TO DATE BALANCE
• EASY ACCESS
• NO FEES
• GOOD SECURITY
• MORE WAY TO ACCESS ACCOUNTS
• HTTPS://ELEARN.NTC.EDU/BBCSWEBDAV/PID-2722533-DT-CONTENT-RID-
8499592_1/COURSES/54-0500-10104203-S-64335/54-0500-10104203-S-
64335_IMPORTEDCONTENT_20151215015849/CH%209%20MOBILE%20WALLET.
PDF
• HTTP://WWW.INVESTOPEDIA.COM/TERMS/M/MOBILE-BANKING.ASP
• HTTP://WWW.BANKRATE.COM/FINANCE/SAVINGS/5-REASONS-TO-USE-
MOBILE-BANKING-1.ASPX

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Market advantages of m banking vs. traditional financial services