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Mobile Banking

 

Mobile Banking

The technology that’s set to rule banking industry

  • 40 Million + transactions are performed using mobile and internet banking every week in the top 5 European banks.
  • 1 Million out of 25 Million existing customers actively started using mobile banking services, within a year of its launch, in a major US bank.

No surprise that across the counter transactions are falling sharply. These days, customers seek help from bank staff only to arrange for mortgages, considering the background due diligence that is involved in the process. But looking at the pace of mobile conquest, this too will drastically drop. Branch-less banking experience will pave the way for customer retention and new customer acquisition. Do your customers still visit your branch to carry out transactions? If the answer is yes, you need to seriously think about revamping your existing technology to avoid extinction.

Initially mobile banking was powered by text communication and was limited to sending activity alerts. Since the introduction of the mobile phone as a banking channel, customer’s expectations have increased multifold. While banks are being forced to offer advanced services on the mobile phone to stay competitive, they  are also benefiting in offering more complex services to their end customers, for eg: instant approval on short term credits without any documentation. This  ease of  completing  transactions with minimum documentation and short turnaround time is the driving factor for banks to invest in technology. It enables them to remain ahead of the competition and offer innovative solutions with a singular focus on customer experience. In today’s dynamic business environ corporate perform high value, high volume transactions through mobile apps. By 2020, 66% of banking transactions will be through mobile apps or via internet.

While working capital is a constant concern for all corporations, managing receivables is an even bigger worry. This is especially true for Retail corporations having millions of end customers. Collections through various channels and tracking of real-time funds consolidation are herculean tasks. Hence, corporate look at outsourcing the same to their banking partners. With the availability of multitude payment channels, banks strive hard to make the entire process operationally efficient. With over 4 billion mobile phones covering over 70% of world population, there is no better way for banks to simplify the collections process for its corporate customers than going mobile. Mobile payments market is set to grow from $12.8 Billion in 2012 to $90 Billion in 2017.  By 2017 mobile wallet use will grow 183%. Thanks to increase in Smart phone users.

Customer loyalty is subject to superior customer experience. Customers, both retail and corporate, always value Anytime, Anywhere banking convenience.  Happy customers translate to additional revenue.  Banks with best-in-class online banking platform enjoy 2 times higher revenue than others.

From personal address change for a retail customer to instantaneous high-value cross-border payment for a corporate, mobile banking will play a significant role in gradual decline of other banking channels and rapid elimination of branch banking in the next decade.

manual_author: 

Balasanjeevi

Date Modified: 

Wednesday, August 6, 2014
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