27-09-2013, 03:32 PM
MOBILE BANKING IN THE NEW MILLINEUM
INTRODUCTION
Mobile banking (also known as M-Banking, SMS Banking) is a term used for
performing balance checks, account transactions, payments, credit applications and other
banking transactions through a mobile device such as a mobile phone or Personal Digital
Assistant (PDA). The earliest mobile banking services were offered over SMS. With the
introduction of the first primitive smart phones with WAP support enabling the use of
the mobile web in 1999, the first European banks started to offer mobile banking on this
platform to their customers
Mobile banking has until recently most often been performed via SMS or the Mobile
Web. Apple's initial success with iPhone and the rapid growth of phones based on
Google‘s Android (operating system) have led to increasing use of special client programs,
called apps, downloaded to the mobile device.
A mobile banking conceptual model
A wide spectrum of Mobile/branchless banking models is evolving. However, no matter
what business model, if mobile banking is being used to attract low-income populations in
often rural locations, the business model will depend on banking agents, i.e., retail or postal
outlets that process financial transactions on behalf Telco‘s or banks.
The banking agent is an important part of the mobile banking business model since
customer care, service quality, and cash management will depend on them. Many Telco‘s will
work through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and
other markets use pharmacies, bakeries, etc.
These models differ primarily on the question that who will establish the relationship
(account opening, deposit taking, lending etc.) to the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Another difference lies in the nature of agency
agreement between bank and the Non-Bank.
Future functionalities in Mobile Banking:
Based on the 'International Review of Business Research Papers' from World business
Institute, Australia, following are the key functional trends possible in world of Mobile
Banking.
With the advent of technology and increasing use of smart phone and tablet based devices,
the use of Mobile Banking functionality would enable customer connect across entire
customer life cycle much comprehensively than before. With this scenario, current mobile
banking objectives of say building relationships, reducing cost, achieving new revenue
stream will transform to enable new objectives targeting higher level goals such as building
brand of the banking organization. Emerging technology and functionalities would enable to
create new ways of lead generation, prospecting as well as developing deep customer
relationship and mobile banking world would achieve superior customer experience with bi-
directional communications.
Impact of on line banking:
It has been observed that customers who adopt online banking are typically more
profitable to the bank, stay with the bank longer and use more products strengthening the
bank customer relationship. A Information Technology and Internet banking has bridged the
information gap, which was interestingly because of human involvement. A Banks can make
the information of products and services available on their site, which is, an advantageous
proposition. Prospective customer can gather all the information from the website and thus if
he comes to the branch with queries it will be very specific and will take less time of
employee. Â Customer can visit these websites and can compare the services offered by a
bank with that of another. A Customer can get all the information, by saving money and
time. The trend thus emerging out is that of virtual corporate system where the human role is
minimized to maximum effect.
Conclusion:
Banking is different in the fundamental sense that they serve all their customers the
same based on their finances and not their lifestyle or any other factors that go into applying
for insurance.