Mobile Banking

Topics: Mobile banking, Mobile phone, Bank Pages: 7 (2228 words) Published: November 28, 2009
Mobile Banking


The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and India. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China and Korea. In fact Korea boasts about a 70% mobile penetration rate and with its tech-savvy populace has seen one of the most aggressive rollouts of mobile banking services. Mobile banking also known as M-Banking, m banking, SMS Banking etc. is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device. The main reason that Mobile Banking scores over Internet Banking is that it enables ‘Anywhere Banking'. Customers now don't need access to a computer terminal to access their banks, they can now do so on the go – when they are waiting for their bus to work, when they are travelling or when they are waiting for their orders to come through in a restaurant. This case study explains us about how the use of mobile banking is increasingly in demand. Initially the banks kept their customers valuables in vaults and each bank use to deal wit their customer’s financial needs. Later Financial data networks were created for electronic transfer of funds and then came the Automatic teller machines (ATM) which extended the electronic banking system to the customers and provided convenience for the customers as well as the banks .To make our life much simpler came the internet and web banking because of all these advancement in the technology customers rarely had to visit the banks. Internet and web banking was not the end to the ways of doing banking transactions. Recently introduced mobile banking has made banking much easier and reachable for the large number of population. It has been well established in Japan and much of Europe however it has been slow to reach the US population. Various analyses and research studies have come out with different explanations for mobile banking not being a success in US. For example U.S cell phone users aren’t interested in this service or due to banks and wireless carriers inability to agree on who should design and control the software. Many multinational organisations like Citibank, AT & T, and Wachovia have come together to make mobile banking a success in the U.S market most banks and cell phone service providers believe that time has come for Mobile banking in the United States. The Major concern which has been highlighted in this case is the customers concern about the security of doing banking transactions over the cell phone and to that mobile banking systems address by explaining how it is secure with the help of Six digit Pin number and also that it does not store account numbers or pins on the handset and last but not the least is secured with 128 but encryption so interception or decoding is not possible. The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers. For example an average teller or phone transaction costs...
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