23-05-2012, 12:24 PM
Mobile Banking
Mobile_Banking.pdf (Size: 426.54 KB / Downloads: 78)
Introduction to Mobile Banking
Internet Banking helped give the customer's anytime access to their banks.
Customer's could check out their account details, get their bank statements,
perform transactions like transferring money to other accounts and pay their bills
sitting in the comfort of their homes and offices.
Mobile Banking Business Models
A wide spectrum of Mobile/branchless banking models is evolving. These models
differ primarily on the question that who will establish the relationship (account
opening, deposit taking, lending etc.) with the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Models of branchless banking can be
classified into three broad categories - Bank Focused, Bank-Led and Non Bank-Led.
Bank-focused model
The bank-focused model emerges when a traditional bank uses non-traditional lowcost
delivery channels to provide banking services to its existing customers.
Examples range from use of automatic teller machines (ATMs) to internet banking or
mobile phone banking to provide certain limited banking services to banks’
customers. This model is additive in nature and may be seen as a modest extension
of conventional branch-based banking
Bank-led model
The bank-led model offers a distinct alternative to conventional branch-based
banking in that customer conducts financial transactions at a whole range of retail
agents (or through mobile phone) instead of at bank branches or through bank
employees. This model promises the potential to substantially increase the financial
services outreach by using a different delivery channel (retailers/ mobile phones), a
different trade partner (Telco / Chain Store) having experience and target market
distinct from traditional banks, and may be significantly cheaper than the bankbased
alternatives. The bank-led model may be implemented by either using
correspondent arrangements or by creating a JV between Bank and Telco/non-bank.
In this model customer account relationship rests with the bank.
Non Bank-led model
The non-bank-led model is where a bank does not come into the picture (except
possibly as a safe-keeper of surplus funds) and the non-bank (e.g. Telco) performs
all the functions.
Mobile_Banking.pdf (Size: 426.54 KB / Downloads: 78)
Introduction to Mobile Banking
Internet Banking helped give the customer's anytime access to their banks.
Customer's could check out their account details, get their bank statements,
perform transactions like transferring money to other accounts and pay their bills
sitting in the comfort of their homes and offices.
Mobile Banking Business Models
A wide spectrum of Mobile/branchless banking models is evolving. These models
differ primarily on the question that who will establish the relationship (account
opening, deposit taking, lending etc.) with the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Models of branchless banking can be
classified into three broad categories - Bank Focused, Bank-Led and Non Bank-Led.
Bank-focused model
The bank-focused model emerges when a traditional bank uses non-traditional lowcost
delivery channels to provide banking services to its existing customers.
Examples range from use of automatic teller machines (ATMs) to internet banking or
mobile phone banking to provide certain limited banking services to banks’
customers. This model is additive in nature and may be seen as a modest extension
of conventional branch-based banking
Bank-led model
The bank-led model offers a distinct alternative to conventional branch-based
banking in that customer conducts financial transactions at a whole range of retail
agents (or through mobile phone) instead of at bank branches or through bank
employees. This model promises the potential to substantially increase the financial
services outreach by using a different delivery channel (retailers/ mobile phones), a
different trade partner (Telco / Chain Store) having experience and target market
distinct from traditional banks, and may be significantly cheaper than the bankbased
alternatives. The bank-led model may be implemented by either using
correspondent arrangements or by creating a JV between Bank and Telco/non-bank.
In this model customer account relationship rests with the bank.
Non Bank-led model
The non-bank-led model is where a bank does not come into the picture (except
possibly as a safe-keeper of surplus funds) and the non-bank (e.g. Telco) performs
all the functions.