Navneet Saxena, Assistant Professor, Amity International Business School, Amity University Uttar Pradesh, Noida – 201301
Mobile phones as a delivery channel for extending banking services have off-late been attaining greater significance. The rapid growth in users and wider coverage of mobile phone networks have made this channel an important platform for extending banking services to customers. Behind every mobile transaction lies a foundation of complex processing mechanisms that guard against fraud, perform verifications and ensure that funds are routed correctly and reliably—the same processing mechanisms present in traditional transactions
Mobile Banking, Technology, Payment Systems,
Mobile Banking – Innovation in Technology and Banking
Mobile phones as a delivery channel for extending banking services have off-late been attaining greater significance. The rapid growth in users and wider coverage of mobile phone networks have made this channel an important platform for extending banking services to customers. With the rapid growth in the number of mobile phone subscribers in India, banks have been exploring the feasibility of using mobile phones as an alternative channel of delivery of banking services. Some banks have started offering information based services like balance enquiry, stop payment instruction of cheques, transactions enquiry, location of the nearest ATM/branch etc. Acceptance of transfer of funds instruction for credit to beneficiaries of same/or another bank in favor of pre-registered beneficiaries have also commenced in a few banks.
Mobile banking - Retail and corporate banking have by and large taken two distinct paths when delivering mobile solutions to their customers. Differences in typical transaction volumes and values, security requirements and liabilities have necessitated a different approach. However, as the technology evolves and services develop, those differences are narrowing.
Mobile retail banking - Being able to access account information from anywhere, at any time, is of great value to customers. Initially offered as a competitive differentiator, in some parts of the world mobile banking applications have become a commodity service, with most consumers today turning to mobile banking for one of the following services: •Checking balances
•Reviewing transaction history
•Transferring funds between accounts
•Locating an ATM or branch
This first wave of mobile banking applications is focused on presenting information rather than enabling transactions from a mobile device. However, as mobile devices develop and the tablet form lends itself to more accurate data entry, the next logical step is to offer transaction banking initiated from a mobile device. This can include services such as: •Person-to-person (P2P) transfers
•Mobile bill payments
•Remote deposit capture
•Mobile fraud alerts
In an increasingly mobile society, the ability to pay individuals, settle bills, top up prepaid cards and accounts, and deposit checks without having to visit an ATM or branch is of obvious value to consumers. Mobile banking can be a significant cost-saving activity for financial institutions by reducing dependence on in-branch and call center interactions. Once transactions are enabled from the phone, the traditional distinction between mobile banking and mobile payments breaks down. Customers are provided with an integrated set of mobile financial services, which can be viewed as an extension of online banking via a new set of devices.
However, there are additional opportunities that are specific to mobile functionality: the combination of real-time communications, location-based services and banking functionality on one device is a powerful one, which offers plenty of scope to create new value-added services.
At a basic level, a typical smartphone...