Lloyds TSB introduces mobile phone banking
Lloyds TSB has become the first bank to allow its customers to transfer money between accounts and check their balances using their mobile phones.
The mobile phone service allows customers to move money between Lloyds TSB accounts , check their balances and review their six most recent transactions. It will also send them a text when their balances fall below £50 of their limit, to help prevent people going overdrawn.
Another benefit of the service is the overseas transaction alert, which Lloyds TSB hopes will help protect customers from fraud. Subscribers will receive a text if their debit card is used to withdraw cash or make a purchase overseas.
The new service will also include an overseas transaction alert. Subscribers will receive an alert if their debit card is used to withdraw cash from a cashpoint or to make a purchase abroad.
According to Lloyds TSB, 74% of people used internet banking to manage their money, but 60% would like to also use their mobile phones to keep tabs on their accounts.
Catherine McGrath, director of current accounts at Lloyds TSB, says: "Gone are the days when we used our phones only to call friends and family. Mobile phones are now part of our daily lives in a way few would have imagined just a few years ago. Just as Internet banking has taken the country by storm over the past decade, mobile banking is now set to change the way we mange our money.”
Although security might be a concern to some customers, Lloyds TSB says its mobile services meets international security standards. All customers are required to enter a six-digit pass code before they can view or move money between their accounts, and they will also need to give their accounts nicknames so no one else can see their account numbers and sort codes.
As with many things in life, the service is not free. Most customers who wish to subscribe will have to pay £2.50 a month for the pleasure, but until October next year the service is free to Lloyds TSB student account holders. It is also free to Lloyds TSB Premier and Private Banking Premier account customers.
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Issued by a bank as part of a current account and, in a nutshell, serves as electronic cash. Unlike a credit or charge card, where you get an interest-free period before you have to settle the bill, the funds spent on a debit card are withdrawn immediately from your current account. Unless you’ve arranged an overdraft, if you don’t have the cash in the account, you can’t spend it.