subject: Overview Of Mobile Banking [print this page] The dawning of the Internet revolutionized the way the financial service industry conducted their businesses. They empowered organizations with new business models and new ways to offer non-stop accessibility to their customers.
The ability to offer financial transactions online has also created new players in the financial services industry, such as online banks, online brokers and wealth managers who offer personalized services, although such players still account for a tiny percentage of the industry. Mobile devices, especially smart phones, are the most promising way to reach the masses and to create "stickiness" among current customers, due to their ability to provide services anytime, anywhere, their high rate of penetration and potential to grow has made them a dominating force in the world of e-banking.
As you might imagine, there are numerous advantages to using mobile banking. One might surprise you in that it is a benefit to banks. This type of service helps to reduce the cost of providing service to customers dramatically.
For instance, if you were to put value to a bank handling a transaction in person or on the phone, the average cost would be $2.36. However, the same transaction could be completed for as little as $0.10. As a customer of the bank this is good news for you too in that the savings the bank experiences would be passed on to you.
In the world of technology, it has been exciting to watch the world change but of all markets in the entire world, the mobile and wireless markets have without doubt grown the fastest. However, the products and services being offered today are just a very small piece of the larger puzzle. Experts expect that over the coming years, all types of new discoveries will be made with many being directly linked to mobile banking.
Since your phone goes along everywhere you travel, whether for business, vacation, or just to the grocery store around the corner, if you needed to take care of business, you could. You would simply pull your phone out, log onto the bank's website, and transfer money from checking to savings and vice versa, look at account balances, pay a bill, order checks, and so on.
Mobile Banking is the hottest area of development in the banking sector and is expected to replace the credit/debit card system in future. Currently there are 47 million mobile users, with approximately 2 million being added every month While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it shells out, mobile banking helps it reduce the cost to a mere Rs 2. RBI estimates that around 40 per cent of Indians lack access to formal financial services and are largely 'unbanked'.
To show you just how substantial this technology is and how strongly it has impacted the way in which people conduct bank business, consider that at the end of 2009, the number of American using mobile banking was around 12 million but at the end of 2015, the numbers will jump to 86 million. Then for European markets, which are advanced over Americans, numbers of 7 million in 2009 are expected to reach 115 million by year-end 2015.
