What are the Different Types of Mobile Banking system

What are the Different Types of Mobile Banking system

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What are the Different Types of Mobile Banking system, If you are asked to tell about a bank, then it will be your concern, not a place where you keep your money safe and financial transactions. But here you are right but very limited. Yes, there is much more happening in this whole world than banking transactions. Banking work is also different and they are also very different in their way of serving them. You have not even heard of some of these bank names. Here are some of them being told, so that you know how important our kids play in the world economy.

What are the Different Types of Mobile Banking system

While talking about the varieties of banking, one thing should be clarified that there is not much difference in their work that you can draw a thick line of difference between them. Rather, due to very fine differences, the way they work change, they provide their services to different types of clients.

Retail banking

  • This is the bank that we all know and it serves the largest part of the world’s population.
  • These banks work for the common man and manage their money.
  • Any person can open their savings or current account after some paperwork.
  • This bank gives interest to its customer on savings and charges interest on the loan given if required.
  • This bank offers facilities like debit card, credit card and check in the name of convenience to its customers.
  • The business structure of such a bank basically works on a low-interest business model that provides more money with money.

   Commercial banking

  • As the name implies, this bank works primarily to provide commerce services.
  • Its customers are just merchants or businessmen who open accounts here.
  • These types of customers need different types of services and bank guarantees for transactions tailored to their business, which provide such banks.
  • Such banks manage large amounts of transactions and also manage them. 

    Investment banking

  • Investment banks are known for their financial expertise, and for this reason the businessmen take care of them.
  • If a business man wants to list his company in the stock market or if he wants to find an inventor for his company, such a bank would assist him.
  • These banks get their customers invested and sometimes they guarantee the investment they get.
  • Such banks also suggest rating of their customers’ business and make them even better.

    Central banks

  • Central Banks is the main body to handle the entire world currency system.
  • Every country in the Nasal world builds an institution to handle its currency, which will work to make it valuable for keeping track of its currency.
  • In India, the Reserve Bank of India discharges the role of Central Bank.
  • Most of the strength and weakness of any country’s economy works on policies created by these central banks.
  • Central bank monitors currency as well as monitors its illegal usage and devaluation.
  • The Central Bank also licenses the functioning of all the banks of the country, and also produces the Model Guidelines for working for them.

   Credit unions

  • Credit unions or small loan organizations are basically a self-help group that works like a bank.
  • It can serve only its members instead of the common consumer.
  • Such organizations base their members on the basis of non-profit or loss and lend money on the need and pay them in easy installments.
  • The money lent by these organizations is also collected in the support of the members, which are not charged any interest or very little interest. 

What are the Different Types of Mobile Banking system

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   Online Bank

  • Such banks have come after the trend of the Internet, and they make all their services available through the web.
  • Here also the customer opens the account and makes his financial transaction through his online account.
  • In India, it has just begun, in our country, online wallets and mobile walts can be considered in the initial state of online banking.
  • These banks are growing fast worldwide and are expected to add half of the world’s population to such a bank in the next ten years. 

   Mutual Banking

  • Mutual banking is quite similar to those of credit union, but where credit unions lend only to do business, mutual banking gives loans to its members keeping in mind the personal needs.
  • In this banking, borrowing and giving is done only among the members, and they also work on the principles of non-profit or loss.
  • In this kind of banking, one member gets money from the other member and the same process is repeated and repeated.

Such banking is more prevalent in developing and backward countries because licensing process is very easy or does not happen.

Also Read :  History of Banking

Types of Mobile banking


What is Mobile Banking?Mobile Banking is a money transaction through your mobile phone. Hard cash on this platform of banking does not matter. It only relates to your bank account and with whom you are dealing with their bank account. Those who transact through this, neither have to stand in the bank’s line nor need to carry heavy cash in the pocket. To do mobile banking you only have to have a smartphone and have internet facility in it.However, there are also mobile banking software that runs in simple mobile phones, and internet connection is also not mandatory for them. For mobile banking, you get a user id from your bank and a mobile pin (MPIN). Many banks have made MPIN your fingerprints to make mobile phone banking even more secure. This leaves the possibility of cheating unbeatable.

USSD (Unstructured Supplementary Service Data)

This is the most convenient and cheapest way of mobile banking. For this you should have only one mobile phone with SIM. Smartphone is not mandatory for this. Also, to take advantage of this feature, it is not mandatory to have internet in the phone. Through this mobile banking platform, you can send money to any bank account, know the balance of your account and you can get the mini statement of the four-five transaction reversed. For special information and use of USSD, see Cashless Payment Methods .

Unified Payments Interface

This system of mobile banking has been developed by the Indian National Payment Corporation (NPCI). This is a mobile app that offers online payment. To use this system, you must have a smartphone with an Internet feature. At present, about 21 banks are offering mobile banking facility to their customers through this system. You can avail the facility by downloading this app from your bank’s website. For specific information about the Unified Payments Interface and how to use it, see How to do Digital Transactions through the UPI?

What are the Different Types of Mobile Banking system

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Mobile Wallet

This is the latest technology to pay from mobile. With Wallet, you must have understood that this is a wallet in which money is kept and you can use it whenever you want. There are currently many digital wallet apps available. The paytm is a mobile wallet, and many banks have also introduced mobile wallet in the market. Many major mobile walts such as SBI’s Buddy, ICICI’s Pockets, Citi Bank’s MasterPass etc are in vogue. The specialty of digital wallet is that it is not linked to your bank account. It has to be put in the first place that means it has to be recharged. The more money you put into it, the more you can spend. Mobile Wallet is the most suitable digital platform for small expenses and payments. How to use Petty?