Emerging Trends and Innovations of Mobile Banking
Mobile Banking and its Advantages With the advent of high quality mobile communication and its popularity with the masses, mobility has seeped into banks as an effective tool for online payments, account management, third-party transactions, financial marketing and other services. Mobile banking includes anytime/anywhere banking for consumers with huge decrease in overall service costs. Additionally, it involves high-end secured communication between the bank and its consumers, with several transactions and dealings possible through smartphones. A huge number of mobile banking services are available nowadays providing boost to customer loyalty. The all-pervading characteristics of mobile banking makes the bank websites perfect access tools for 24X7 banking with personalized and tailor-made services available for each of the customers. In recent years, Mobile Banking or M-Banking is being heavily used by customers and one can say that internet banking is responsible for the huge demand. Net Banking features paved the way to mobile banking as a feasible alternative to physical branch banking. Now, one can access one's bank account easily on the move, anywhere and everywhere. One can check the overall account balance, view the recent transactions made, transfer money to a third party account of some other bank, pay utility bills including electricity and mobile and do much more, through a net-enabled mobile device. With the huge internet network in the country, mobile banking is not a remote possibility. Mobile banking works on the basic limitation of Internet Banking and in nearly all Asian developing countries, the range and access of mobile connectivity is extremely huge. One can find mobile connections and smartphones even in homes which do not have a landline net connection or a computer. Mobile connectivity in remote villages and cities is not a huge problem nowadays since most of the people are able to use mobile adroitly. Mobile banking has changed the face of traditional banking and rendered a newer look to the proceedings. One does not need a PC or laptop with internet connectivity for mobile banking, one just needs a mobile. Countries like China and India have witnessed an unexpected rise of mobile devices and connectivity measures in most of their cities in recent times. Here are the 2009 figures related to Mobile Banking Research according to a survey:
Mobile Banking Research Question: Do you use any kind of online or electronic banking (eg to check your accout balance, transfer money, or pay bills)?
UK Mainland China
% Sources: Asia Pacific technographics Survey. 02 2009; European Technographics Benchmark Survey, 02 2009; North AmericanTechnographics Benchmark Survey, 2009(Us, Canada) Advantages of Mobile Banking Reduces the operational costs of the banks and proves to be a cheaper substitute to tele-banking facilitiesMobile Banking has aided banks to improve the overall quality of services and even the approach that they have embraced for customer relationship management. Using Mobile Banking, banks are able to attend to a defined cluster of clients. Banks can now offer personalized schemes and discounted services to an elite few for their investment in the bank. Improved image of the bank and its services to upsell or cross-sell its financial products to special set of customers One can also provide additional banking services to the same client base after a market gets saturated and continues to provide sporadic offers and discounts on specific packages. Banks can align their services and offerings on the standards set or the policies implemented by the political conditions in the country. Additional services might include Credit/Debit Alerts, transaction alerts, and requisition of cheque books, fund transfer options, and other like facilities.
Mobile Services Notifications
Account and profile management
Completed transactions ü
Profile updates of personal info ü
(crediting/debiting, interest payments.) Account updates ü (delinquency level change, card blocking/unblocking) Preconfigured events ü (fraud notifications, lost and found notifications)
Card blocking ü New service updates and enrolments ü Marketing services Personalised messages for special occasions ü Notifications of new services and offerings ü
Payments and transfers Account-to-card transfers and vice-versa ü
Account-to-third-party account transfers ü
Balance statements, mini-statements, loan ü
Utility payments ü Prepaid and postpaid services ü Authentication Methods
account information, and other miscellaneous info Requests for financial trends information ü Mobile Banking Management
Standard and basic authentication ü
Message text setup and in-form automatic updates ü
Authentication with confirmation codes ü
Setup of data sources ü
One-time password (OTP) for transfer of money ü
Risk management services ü Transaction add-ons for e-shopping ü Mobile banking enrolment ü
Categories of Mobile Banking Mobile Banking activities can be categorized and segregated in two different sections: 1. Nature of Service: Banks can implement mobile banking activities based on inquiries or transactions. Customers enquiring about their account balance would belong to Enquiry Based Services while a customer opting for a Fund Transfer to a specific account would belong to Transaction Based activity. 2. Originator Dependency: These activities are segregated into Push and Pull types of services wherein they depend on the nature of the originator. A Push based service is a type of service which originates from the bank and ends with the client. For example all types of payment alerts represent Push based services while asking for recent transaction history would be a part of Pull based service.
Mobile Banking services are expected to become more popular with the masses with the diminishing costs of smart phones and other mobile devices. Nowadays, smartphone features huge screens and huge memory size. Mobile websites are increasingly being used for better rendering of sites and services within the smartphone. A huge bulk of handsets and mobile devices are being used by several people and with days to come, mobile banking is sure to make inroads in the average daily life of a commoner.
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Published on Feb 7, 2013
Mobile banking includes anytime/anywhere banking for consumers with huge decrease in overall service costs.