Lloyds TSB will next month be the first to allow customers to transfer funds between accounts within the same bank via their mobile.
Customers of a number of High Street banks can already use their mobile phones to check their account balance and check the details of their last six transactions.
The system, run by a mobile money network called Monilink, also allows parents to top up the credit on their children's pay-as-you-go mobile phones via their own.
A text alert service for when customers are within £50 of their balance limit is also in place.
"Just as internet banking has taken the country by storm over the past decade, mobile banking is now set to change the way we manage our money," said Catherine McGrath, director of current accounts at Lloyds TSB.
