Nervously glancing over your shoulder, shielding your PIN number and bank account information glowing on the ATM screen in a dimly lit area, or struggling to pull up “just enough” but not “too much,” then opening your door “just enough” or not “too much” at the drive up ATM for transactions may soon be a hassle of the past.
In the 1990s, the idea for mobile banking was born. Today it has grown into a convenient idea that fits in your back pocket.
“We’re changing. Banking is changing,” Citigroup CEO Chuck Prince told reporters, in announcing the launch of CitiMobile in New York City Monday morning. “I look forward to the competition trying to keep up with us.”
CitiMobile allows consumers to access bank accounts from their cell phones. Though Wachovia and Bank of America recently launched similar versions, CitiMobile swings with a different edge. The program lets customers download an application to a cellular device and directly connect with the bank, side stepping the need for a Web browser for the banking transaction.
The new mobile service will require the registration of a specific phone and the selection of an access code. The program is free, though internet rates through service providers might apply. Customers can check account balances, review recent transactions, pay bills, transfer funds, connect to customer service centers, and search for branch or ATM locations.
Mobile banking comes in handy for fund verification. Before you haul to the bank for a happy hour fund withdraw-you can check the funds on your phone. Not sure whether to splurge on desert or skip out on an entrée? Check your bank account on your phone for a balance inquiry.
Then there’s the issue of security. If someone steals a phone with the mobile banking program installed, is there a risk?
Maura Markus, president of Citibank North America, said the information never actually resides on the phone; if the device is lost or stolen the banking information is secure. Just as a consumer would block or cancel a lost credit card, a consumer “deactivates the cell from the account.”
Additionally customers must enter a six-digit personal password to access the accounts; personal information, including account numbers is not stored in the phone and the bank will have an encryption code.
CitiMobile will be introduced first in Southern California. Both Citibank and Bank of America anticipate offering the service nationwide by mid-summer. Wachovia currently offers all its online customers access.
Shares of Citi Group Inc. (NYSE: C) were trading at $50.83 Monday afternoon.