M-Banking, short for mobile banking, may be the hot new tech catchphrase, but it is more than just a clever term. It’s a real advance in the way that routine financial dealings are carried out. From the purchase of a cup of coffee to refinancing a mortgage, its full potential is just beginning to be explored.

Online banking was once viewed with suspicion as a security risk, but in a few short years it became established as the new standard for account management and basic transactions. Today, almost everyone takes advantage of the convenience to some extent. Now, smartphone technology is at the forefront of a new direction for banking across the internet. The combination of image capture, internet access, SMS capabilities, and GPS positioning in a single object that slips into a pocket make for powerful potential

Financial institutions know this, and have, accordingly, stepped earnestly into the arena of applications, fondly called apps, for mobile banking. The popularity of these apps doesn’t come as a surprise. No one ever looked forward to standing in line at the bank, or gathering pages of data from four different institutions in order to apply for a loan. These activities, and more, can now be performed with a few clicks, swipes, or shakes.

Checking balances and paying bills can be done from anywhere, and instant money transfer between accounts is as easy as sending an email or text. You can even send money to a friend using this method, without the transaction fees of third-party agents. Some banks even allow the deposit of a check with just a photograph, so you no longer need to fill out a deposit slip and drive to the branch.

Some merchants have developed their own applications which allow customers to make purchases by simply waving their enabled phones in the vicinity of the cash register. A pre-loaded virtual debit card is the funding source for most of these transactions. The popularity of these programs has stimulated an industry drive to compete.

Looming in the future is a broader mobile shopping experience. Already in the testing phase are applications designed by web giants which are intended to act as a virtual wallet, replacing the use of credit cards. These applications will enable consumers to buy things at multiple retailers using a single mobile application. They are expected to roll out across the United States in the next eighteen months.

Within a few short years, anything that you used to have to go to a financial institution to accomplish will be able to be done with a few shakes of your smartphone. And that’s a good thing.