Summary:Around the globe financial institutions are adopting mobile technology to digitalise our financial interactions.
In countries where the population that banks is approaching 100% mobile banking is largely an added service whereby customers can perform their usual banking interactions from within their mobile device, without the need to set foot in branch. This usage is supported by mobile devices and tablets that support applications and other online services. In developing countries, mobile banking is becoming a service to drive more custom to the un-banked population.
Many banks and other financial institutions are opting for branchless interactions with their customers, where relationships are entirely managed through mobile or online and in fact those businesses have no physical presence whatsoever. For example, First Direct in the UK launched branchless banking as early as 1989 and operates only via phone, post and online.
During the past two years, leading U.S. financial institutions have been fueling the growth of mobile banking by steadily adding features and functionality to their mobile offerings. The findings from First Annapolis Consulting’s third annual Mobile Banking and Payments Study show the availability of advanced banking features, such as remote deposit capture (mRDC), credit card reward redemption, and mobile wallet participation grew significantly in 2012.
Retail banks are under threat from a new breed of banking businesses that allow customers to manage their engagements completely online or via mobile. Green Dot’s GoBank, launched last week, offers mobile banking by making banking completely branchless and via mobile-only. GoBank is designed to give access to many traditional features from a bank, including account security, just from an iPhone or Android device. Reportedly, the new bank is launching in a small beta but is expected to be available to everyone later this year. It is meant to offer many of the features of traditional banks, but without a lot of fees or the long waits.
This relatively recent shift in the behaviour of the industry has highlighted the fact that traditional banks must respond rapidly to retain market share by sustaining innovation to cultivate new revenue channels. This type of development will also allow banks to reduce operational costs and improve efficiency by simply having less outlets.
Juniper Research has found that over 1 billion mobile phone users will have use of their mobile devices for banking purposes by the end of 2017, compared to just over 590 million today.
Dynmark has been working with various financial services companies for over a decade, providing tailored integration solutions as well as best practice and campaign management advice. Our experience means that we know how to make the most of SMS for the financial services sector and understand how to support your business. Read more about Dynmark’s financial experience here.