mobility in banking

Mobility in BankingUnwiring the bank

Mobility in Banking : Unwiring the bank/ 2

The Changing Landscape…

A report by Juniper Research predicts that mobile banking users across the globe will reach 530 million by 2013, up from just over 300 million in 2011; making mobility a key strategic channel for the banks encompassing the entire set of banking operations.

The fascinating success story of mobile banking solutions does make us inquisitive and tempts us to ask and find answers to a few questions like- how the banking landscape has changed over the years? What’s driving the growth of mobile banking? Where it’s heading? And, how smooth is the ride ahead? As the next wave of banking mobility arrives, our cover story endeavours to get an overview of banking mobility solutions and find answers to above questions.

Mobile banking which started-off with banks offering services like balance inquiries, check-book requests etc., via SMS and later with the browser through WAP and GPRS has, over the years, widened its scope, engulfing a huge part of banking operations, both internally and externally. The initial changes have been no less than dramatic. As mobility takes the centre stage in the technical infrastructure of banks, business processes are being reengineered and new models explored. Mobile payment processing, location based services, add-on services etc., have led to greater extension of mobile solutions enabling banks to provide a consummate banking experience to the customers.

Today, banks not only use mobile devices and applications as a channel to offer services to customers but also use it as a tool to connect within the organizations, empower their workforce and control its various processes and assets. So, we not only see basic banking operations performed through mobile devices and applications but also see increased use of mobility solutions within the organizations in complex operations like asset management services, loan approval processes and database management.

mBanking or Mobile banking is a term used for performing banking transactions such as account transactions, bill payments, fund transfers, credit applications etc., on devices such as a mobile phone, Personal Digital Assistant (PDA) or a Tablet.

Mobile Phone and Tablet usage are soaring. Access to mobile networks is now available to 90% of the world population and 80% of the population living in rural areas.


The customer attitude towards mobile banking has also undergone a sea change. Far from being wary of carrying out financial transactions on mobile, as was in the early days, people, owing to ubiquity and convenience, today, have nicely warmed up to the concept of banking on their devices and are pretty comfortable paying utility bills and transferring funds on the go.

Competitive edge.Brand building.

Higher customer satisfaction.

Fewer resources, cost reduction.

Added medium to connect and reach customers.

Highly Secured. Easy installation.

Unique experience, personalised services.

Easy and rich interface.

Anytime, anywhere access.

User Bank


The Drivers…

Several factors are at play behind the growth of mbanking or mobile banking. Smartphones and Tablets have become ubiquitous. Consumers are welcoming banking services on their device. Bandwidth is getting breezing faster. Mobile apps have gone powerful and much-secured to integrate with banking processes and operations. While powerful game-changing drivers like faster ROI, higher productivity and a direct and personal communication channel with the customer base has attracted banks to embrace mobility, customers are buoyed-up by anywhere, anytime and quick services.

• Improve customer acquisition and retention.

• Revenue generation and cost containment.

• To reach to the undeserved populace.• To provide unique banking experience,

24x7 access.• Customer privacy.• Best practices and decision support

processes.• Brand building through innovative

marketing channels.

• Reduces expenses for banking institutions and makes banking accessible to remotest locations.

• Anytime, anywhere access leading to higher customer satisfaction.

• Fewer resources leading to cost reduction.

• Facilitate staff member interactions and coordinate activities.

• Place vital tools and current information in the hands of consumers and service providers.

• Provides marketing and business benefits.

Major Concerns of Banking Industry

How mBank can address the challenges?


The Big Gains…

Mercatus LLC Survey on mobile banking came up with some interesting results validating how mobilizing the operations and services can boost customer acquisition, brand perception and sales.

The report reveals that-• Banks offering mobile financial services can increase new customer acquisition by as much as 60%.,• Mobile financial service capabilities have more impact on a consumer’s decision to select a bank than availability of online banking, access to ATMs, or nearby branches.

0.00%

6.70%

10.80%

19.60%

27.30%

36.20%

44.40%

50.30%

53.60%

20082009

20102011

20122013

20142015

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%Mobile Financial Services penetration among US mobile phone users.

Source : Mercatus LLC Survey

The cost to serve comes at $0.56 per interaction for the IVR and $0.40 for mobile.

-Yankee Group


• Banks offering mobile financial services should anticipate as much as a 60% increase in sales lift.• Customer acquisition, promotional offers including mobile financial services out-performed those that did not include mobile financial services by nearly 30%.• A decrease in cost of acquiring a new customer by as much as 20%.

The Possibilities…

Today, mobility for banking is not only a viable medium but also an enabler that can act as a force multiplier for other channels. Mobile devices and apps offer considerable value to banks both from a B2E and a B2C perspective. Mobile applications are swiftly replacing the mobile websites of banks by providing better experience and secure transactions. Some banks have already introduced mechanisms that enable interaction between the ATM and the mobile devices of the customer. Armed with a smartphone or Tablet, a user can connect his device wirelessly to the ATM, authenticate and can make a withdrawal or fund transfer through it without any debit or credit card. Within the organizations, powerful enterprise solutions have facilitated performing a spectrum of services on mobile devices. Bank employees, today, not only use mobile devices to connect and interact within the organization through mail, messenger etc., but also use it to access various company resources like Management Information System, Transaction management and Sales Force Automation etc. Mobility solutions for banking are making processes leaner and quicker not only with their own might but by also complementing other technologies.

» Payments: Banks are rapidly leveraging mobility solutions to enable customers to use their mobile devices to make payments at stores. Similarly, efforts are on, to facilitate person-to-person payments where money can be transferred from one person to another like PayPal.

» Remote Data Capture: The facility to deposit documents like checks; pay order etc., by simply scanning the check and sending the image to the bank rather than depositing the physical form in the bank.

» Location based Services: Many banks have already embraced location based capabilities of mobility solutions to locate ATM’s, bank branches etc.

» Call Recording: According to statutory regulations, banking organizations are required to record calls to and from customers and banking mobility solutions can facilitate in doing that.


The Challenges…

The Future…

The ride, however, is not so smooth. There are multiple challenges facing the banks as they move on to leverage mobility solutions. There is a massive proliferation of devices differing in form, functionalities and features. The challenge will be to come-up with a solution that fits all. While the world may have been stepping into 4th generation of internet connectivity, still bandwidth latency and coverage is an area of concern if mBanking has to truly stand to its promise of anywhere, anytime banking. Security of banking transaction over the air is another complicated challenge which calls for continuous intervention as the technology evolves. Decision makers should also need to keep an eye on the scalability and reliability of mobile infrastructure as the usage grows and mobile devices become the major channel from yet-another-channel of contact between customers and the branch.

A report by Juniper Research predicts that mobile banking users across the globe will reach 530 million by 2013, up from just over 300 million in 2011: making mobility a key strategic channel for the banks encompassing the entire set of banking operations.

Platform Scalability

Key Challenges

Data Security

& Fraud

Detection

CustomerExperience

Integration&

DeploymentModel

Mobile Banking will be one of the greatest success stories of the mobile commerce industry over the next five years, as consumers observe the benefits of accessing banking services on the move. As customers become comfortable with undertaking basic banking functions on their mobiles, an increasing number will adopt transactional-based banking enabled by the enhanced functionality afforded by smart devices, exposed to an all-immersive consumer experience.

– Sonia Lalli, Juniper Research


In addition to a steady increase in the number of banking services on their mobile devices, the quality and level of mobile experience will also be a detrimental factor in the growth of mobile banking. Merchants, keen to maximize their customer base, would look for new, convenient ways for their customers to shop and pay. Sample this: You are shopping. You carry all the items in the shopping-cart to the bill desk, get the bill and put your hand in the pocket to take out your wallet…but, this time your m-wallet. Yes, as smartphones get powered with NFC (Near Field Communications), mobile devices will turn into wallets and cashless transaction will get a new meaning. As a result, banks have to think beyond conventional possibilities when it comes to mobile banking. From being your bank’s branch to your wallet; the mobile phone will do a lot in future. The trends points towards a future where everything will be real-time and any-time and mobile devices will emerge as the major medium of consumption. Tapping onto the opportunities available will help banking institutions derive enduring value from mobility solutions.

• Embracemobility: Mobile banking is here to stay. And offers tremendous value to both, banks and customers. The opportunities are endless.• Focusonconsumerexperience: Create a smooth, user-friendly and secure mobile banking environment.• Picktherightplatform: Diversity in screen sizes, functionalities and operating systems necessitates banks to adopt a multi-platform approach.• Keepaneyeonanalytics: Monitor user behaviour. Customer intelligence will be the guide for future.• Laydownthegroundworkfornextgenerationofm-banking: Emerging technologies like NFC, RFID etc., promises more opportunities. Be ready to seize them.

Near Field Communication ( NFC) is the next generation wireless communication technology which enables real-time data exchange between compatible devices. The communication between two NFC enabled devices takes place with a simple proximity wave or by touching the two devices to each other. A user can make transactions just by touching his NFC enabled device to a NFC credit card reader. All the transaction information then is securely stored in the smart card chip integrated inside the device. NFC technology thus enables easy, fast, and secure way of mobile payment.

Our Recommendations…

[x]cube is the premier mobile solution partner for companies and individuals creating the next generation of digital applications. [x]cube develops custom solutions for the iPhone, iPad, Android and Windows Mobile platforms.[x]cube is a division of PurpleTalk, Inc.

xcubeLABS.com | 1-800-805-5783 | [email protected]

The world of convenience banking on mobile phones and Tablets is pretty engaging. A powerful value proposition! However, it is just the beginning. The swift pace of change in the mobile technology is opening new opportunities, driving innovation and prompting banks around the world to ask- what else? A big shift from- why go mobile, a few years back? The evolution has led many banks to not only see mobility as an enabler towards greater customer access to their services but also as a catalyst for a larger role in their lives. Mobile Banking is set to go beyond its current informational and transactional role. Banks have a window of opportunity to seize the initiative. Procrastination is no longer a choice. Adoption is the only way.

The Beginning…

[x]cube LABS is one of the leading mobile apps development and consulting firm, headquartered in Dallas, U.S and with offices in New York and Hyderabad, India. With expertise across all the major mobile platforms, [x]cube has delivered over 500 apps till date and has an enviable client list comprising of some of the biggest brands like GE, Intel, Texas Instruments, Hasbro, Mattel and 24 Hour Fitness. [x]cube’s understanding of the mobile space and technology, complimented by its rich experience across all the major industry verticals and the capability to deliver end-to-end solutions, make [x]cube the perfect mobile consultant of choice.

About [x]cube LABS

Reach [x]cube [email protected]

1-800-805-5783

www.xcubeLABS.com

To integrate your enterprise people, processes and products with customized, avant-garde mobility solutions or to explore mobility opportunities in your enterprise with our experts, please feel free to contact us at [email protected].

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