Highly convenient for people on the move
Ari Darmawan, Contributor, Jakarta
Betsy was stuck in a traffic jam on Jl. Rasuna Said in Central Jakarta. She looked at her watch several times as she was getting worried that she would be late for an important meeting with a client.
A moment later, while slowly passing a building, a billboard on the building suddenly caught her attention. The billboard carried an advertisement for an insurance company. It also suddenly reminded her of the insurance premium that was due the next day.
Immediately she pulled out her cell phone from the bag lying on the seat next to her and started sending a text message to her bank ordering it to make the payment. In a few minutes she received a reply from the bank: "Your transaction has been completed." She felt extremely relieved.
"Thanks to mobile banking, various banking transactions are today really no problem. I use it for paying the electricity, telephone and water bills, and many others, without wasting time and energy in lining up at the bank or even at the Automated Teller Machine (ATM), and so forth. It's very convenient as one can do it from anywhere by using a cell phone," said Betsy, an account director with a major advertising agency in the city.
The number of international and domestic banks that provide mobile banking -- often abbreviated as m-banking -- is growing by the day and almost all major players, such as BCA, Bank Niaga, Bank Bumiputera, HSBC and Bank Mandiri, provide the service for the convenience of their customers.
Many customers think that m-banking is much simpler and easier than Internet banking. A cell phone is certainly simpler to use and much cheaper than a computer. In the case of a computer which is used by more than one person, like in most offices, then there is another risk: our ID and password can be "stolen" and used by someone else for banking transactions.
"In m-banking, the user ID is related to his or her cell phone number. So, even if someone finds out the password, it is still difficult to undertake any banking transactions, unless that person also steals the cell phone that contains the Subscriber Identification Module (SIM) card," explained RM Roy Suryo, an expert on telecommunications.
One of the shortcomings of m-banking through cell phones is that it has to rely on the mobile phone operators, such as Telkomsel, Exelcomindo, Satelindo and Indosat M3, for the transmission of the text messages to the bank's server.
Problems start to emerge when one of the servers, either the operator's or the bank's, is down. It is also difficult to find out whether the transaction has been carried out.
Roy Suryo said that customers do not have to worry too much in this type of situation, because the order for the transaction -- the text message -- is recorded and not deleted on both the operator's and the bank's servers. "Of course, it takes time to retrace it," he added.
Another problem is delayed transactions. This usually happens when the bank's server is busy and receives the message hours later.
Some customers say that although they have gone through the right procedures and the delivery report on their cell phone reads: "Message delivered", they sometimes find out later that the bank has not received the instruction.
"Well, sometimes, just to make double sure, I call up the bank to find out the status and speed up my transactions," Betsy said.
In m-banking, one thing is very different. There are no printed receipts for banking transactions such as those from tellers or ATMs. However, customers do not have to worry too much about the absence of "physical proof", as every transaction is recorded in the bank's server and should there be any error the data is traceable.
Useful tips for mobile banking
1. Your bank's leaflet containing instructions for mobile banking should be kept handy.
2. Keep the Transaction Reference number that is sent to you in the bank's "Your transaction completed" message for proof of transfer.
3. Always delete your messages in the sent item on your cell phone, especially those for checking balances and transfers, as they contain your Personal Identification Number (PIN).
4. In case your bank does not respond within a few minutes, do not send a second message to avoid a double transfer. Check the status of your transaction with your bank's customer service section.
5. Always take great care and guard well your personal identity card, driving license, passport, savings book, ATM card, cell phone and its SIM card to ensure the safety of m-banking transactions.
6. Should you lose your cell phone, report immediately to your operator to deactivate the SIM card, and your bank's customer service section to block your m-banking facilities.