In present times, the needs and expectations of customers are changing as quickly as the racing competitive landscape. Customers are demanding seamless, multi-channel service experiences. The result is forcing banks and financial institutions to examine a more balanced, integrated approach to the customer experience and move beyond simply meeting their profit and growth goals to delivering complete solutions.
With shift in customer expectation, need-of-the-hour is to rapidly transform the retail distribution landscape for banking services from a branch-dominated paradigm to one of integration and balance among multiple channels. Branches will still play a vital part in this new equilibrium, but they will be very different. As business via other channels like mobile banking evolve, Banks will face some tough strategic decisions in adapting to this new environment
What is Mobile Banking?
Mobile banking means a customer of a bank performs his banking transactions himself through his cell phone. Until recently, you had to depend on the bank to conduct your banking transactions, and to keep your account secure. But now, you can conduct banking transactions with your cell phone instantly and also secure your own account.
Mobile Banking includes text alerts - messages sent to your cell phone alerting you on transactions pertaining to your account such as deposit, withdrawal, credit card or ATM card usage etc. on a real time basis. It also includes banking transactions like the transfer of money from account to account, effect payment for purchases made etc made using cell phones. It also provides Notification features like Internet / phone purchase notification, deposit notification, purchase notification, balance verification, mini statement requirement, low balance alert, card used while off etc.
Classification of Mobile Banking Transactions:
Mobile Banking services are classified in following ways:
[I] Based on how information flows:
A pull transaction is one in which a mobile phone user actively requests a service or information from the bank. For example, inquiring about an account balance is a pull transaction. So is transferring funds, paying a bill or requesting a transaction history. Because banks must respond or take some action based on the user request, pull transactions are considered two-way exchanges.
A push transaction, on the other hand, is one in which the bank sends information based on a set of rules. A minimum balance alert is a good example of a push transaction. The customer defines the rule -- "Tell me when my balance gets below Rs1000" -- and the bank generates an automatic message any time that rule applies. Similar alerts can be sent whenever there is a debit transaction or a bill payment. As these examples illustrate, push transactions are generally one way, from the bank to the customer.
Mobile banking has already evolved as a powerful tool to build long-lasting and mutually rewarding relationships with new and existing customers. The Banks and the mobile banking service providers are working their way towards increasing consumer acceptance with mobile devices to carry out their banking transactions. The mobile banking service providers are teaming up with mobile banking technology vendors for consistently improving technology solutions that focus on creating a better consumer friendly experience with mobile banking. These technology advances will further increase consumer acceptance and ease with mobile devices
The principal value to consumers has always been time and location service fulfillment and this need will be further enriched & enabled through the mobile channel. Mobile banking in the future will not be just about checking balances and paying bills; it will evolve into a mobile wallet, allowing banks to generate greater electronic payment volume through the combination of electronic loyalty programs, mobile marketing, and contact less payments thus opening up a gamut of opportunities for companies in the BFSI domain to tap potential customers.
