Mobile Financial Services
Introduction to Mobility in the Financial Sector Penetration of mobile services has crossed millions of mobile phone subscribers all over the world. Smart mobility in the financial sector has helped financial institutions to reach millions of customers through mobile services. Mobile financial services (MFS) offerings which have leveraged the services include mobile money, mobile banking and mobile payment of utility bills along with cashless payments. MFS also plays an important role in controlling the overall load on infrastructure while driving economic growth.
Mobile users are always keen to use safe and secure methods for getting their financial transactions done while on the move. On the other hand, people are also trying to find ways to meet banking needs. MFS is the right answer to their needs since the present generation is keen to get a smartphone to get their things done. The surge of mobility through smartphones has prompted several ideas being implemented by Mobile network operators (MNOs) in conjunction with banks who are exploring multiple channels of revenue and reduced costs of operation. MFS drives users to pay their utility bills through the mobile with a strong relationship with end customers.
Several vendors who are adept in providing digital security solutions offer a comprehensive suite of MFS solutions to help financial institutions with several opportunities. Here are some channels through which financial institutions have leveraged mobility solutions for their benefit:
Mobile Money: Much of the population in the third world countries do not have bank accounts. With millions of mobile phone subscribers adding to the kitty, banks and MNOs can direct their energies to create additional revenue streams using the concept of Mobile Money. Mobile Money solutions allow conversion of cash into electronic fund through the medium of mobile phones. The electronic fund can then be used for paying bills, buying tickets, making miscellaneous purchases, adding balance and transferring money through mobile wallets. The mobile money concept needs end-user privacy and secure encryption of confidential transaction details which requires a strong and safe solution from a reliable
Mobile Banking Mobile Banking is good enough for people who want to conduct transactions from the comfort of their home or office without having to stand in queues as per traditional banking norms. The net banking facilities help users to remotely access and manage their bank accounts in a discreet manner. Secure mobile banking solutions are implemented by various banks today while mobile platform-compatible apps are updated simultaneously for those who would like to transact using mobile devices.
Any mobile banking solution needs to blend in with the existing mobile network and infrastructure while opening new avenues and business opportunities for financial institutions. Through mobile banking, financial institutions can bring in brand differentiation and reduce costs by conducting transactions online. On the other hand, mobile devices can be accessed anytime and anywhere to get complete access to bank services.
Mobile Payment: Mobile payment solutions are required to bundle cards, prepaid value, and different bank accounts within your mobile device. This facility is used to secure payments through remote access for digital or physical goods whether done online or through a physical store making use of the mobile device. Mobile wallet credentials should be known only to the user while providing bank authentication without the sensitive card and bank data. There are mobile payment solutions available which can facilitate Peer to Peer (P2P) transfers, international remittances and quick card-less payments for consumers, while banks fetch increased revenue with customer loyalty and tailored services.
Mobile Near Field Communication (NFC): Mobile NFC facilitates devices to communicate and transact over short distances of less than 10 cm. This feature is useful to facilitate shopping options as well as micropayments especially good for ticketing. Ads can be read through NFC options and one can secure value deals. The service manager behind the NFC service makes sure that the sensitive data, diverse user credentials and software apps are handled and secured with seamless service delivery. With widespread mobile adoption, these changes are sure to affect the market. Mobile app solution vendors need to utilize end-to-end security encryption in between the banks and the SIM cards in mobile devices.
Considerations for Mobility Implementation in the Financial Services Sector Communicate the general prerequisites for mobility initiatives as per the needs of the financial institutions Evaluate the right technology to match the requirements Enhance and boost adoption in the industry for better results
Meeting the Needs of Customers from the Financial Houses Convenience in user experience Freedom to choose bank, operator and asset Wide Acceptance and Usability of mobile financial services Guide the user through the entire sale cycle Service proposition has to offer value back to the relevant sponsors Scalable across several financial service organizations Branding is important especially in the value chain Open and non-proprietary tools have to be used Make use of existing standards if possible Independence between banks, operators and smartphones End-to-end security, secure authentication and non-repudiation Implementation costs need to be minimal
Remote Payments Remote mobile transactions are fast becoming popular with the increase in purchase of ringtones and the like especially while browsing online merchant sites. A big part of mobile payments are card-based wherein a realistic mobile solution for payment transactions needs to be facilitated. Comprehensive card-based applications are required for making mobile transactions a success. Importance needs to be given for payment credential provisioning wherein the information input needs to be simple and uncluttered. Automatic form fill-in can make mobile transactions fast, easy and extremely convenient. The market response for remote mobile payments is good enough. The introduction of SMS-based value added services brought about the advent of financial transactions through mobile. New personalization elements and digital content consumed through the mobile channel has brought about a growth in expectations for remote macro payments.
About Softweb Solutions Softweb Solutions provide exclusive solutions in Mobile Device Integration for all mobile platforms such as iOS, Android, Blackberry, Symbian and Windows. Softweb Solutions have served leading mobile device integration requirements with award winning apps. For more information, write to us on email@example.com or visit us at www.softwebsolutions.com
Smart mobility in the financial sector has helped financial institutions to reach millions of customers through mobile services. Mobility ad...