In the past few months there was found an increase in number of institutions pursuing the initiatives of mobile banking. Despite this, there are still various questions remaining such as which delivery model is best, whether consumers really needs the service and how banks realize their ROI’s.
For almost five years of lying on quiescent mode, mobile banking is one of the fastest growing services in our financial market today. Top 10 of U.S banks are running their own mobile banking solutions. Also, several financial institutions are busy finding their places in the mobile banking world.
Mobile banking first appeared in the U.S a little before the year 2000. For the past few years after it had launched, most of the banks abandoned their prior efforts.
Now, there are several factors on why banks are choosing on giving the mobile banking service a shot. One of these is an increase in uptake of mobile phones/cellular phones nationwide, in particular smarter phones and newer brands. Another is, the consumerization of IT is the trend. Most consumers of our mobile technology today are younger generation, most of the time they are comfortable using mobile functions such as sending and receiving text messages, checking game scores and buying ring tones. Now more and more of them are accepting recent mobile services such as banking and making payments.
Over the U.S mobile usage have increased to 58% in the past 6 years and still the number keeps getting higher and higher each passing month.
In today’s world, technology has proven itself to be one of the industrious way for many transactions. Not only it has made communication a lot faster but, efficient and a hassle free method for doing business. The beginning of the internet has transformed the methods of the financial services industry for different types of businesses, sanctioning organizations with new business models and sophisticated ways in offering 24/7 convenience for their clients.
Mobile banking is considered as one of the offspring’s of the internet. Mobile banking is a term used in performing balance inquiries, transaction of accounts and payments by using a mobile device. It also refers as a stipulation and availment of banking and financial services through means of mobile telecommunication devices. The extent of offered services may include amenities to perform bank and stock market transactions, to manage accounts and access modified data.
Designated financial services such as accounting and brokerage are transaction based. However, non-transaction based services contains essentials for conducting balance inquiries that is needed before consigning money remittance. The ability to proffer financial transactions online creates new players for the financial services industry such as online banks, online brokers and wealth managers who proffer personalized services. Mobile banking infrastructure allows clients performing banking transactions anytime, anywhere therefore banks make sure that the systems are up and running smoothly 24/7.
Currently more and more people are being engaged in doing transactions by using their mobile phones. As of the year 2007 mobile banking grew 400,000 to an escalating 3.1 million in 2008.
What is Mobile Banking?
Mobile Commerce is any transaction, concerning the transmission of ownership or rights to utilize products and services, which is commenced and/accomplished by using mobile admission to computer-arbitrated networks with the help of a mobile device.
Mobile banking features and benefits:
- Allows customers to not only access on account information, but to also allow transactions such as purchasing stocks and remitting money.
- It is less prone to ID theft, phishing and pharming.
- Providing net security which is free from idleness and paradigm shifts.
- Also it allows customers to shop at any given time and location.
Doing mobile commerce is popular in countries where most of their population is unbanked. As mobile banking increases comes increased of security as well. In the upcoming mobile banking products and solutions will propose wireless access to multiple account features and to a new payment system.
