Tag Archives: Banking

Feb 22 2013

Banking is going mobile with branchless technology

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.

Jan 14 2013

Study: 1bn people to use mobile banking by 2017

Mobile banking is set to become increasingly common over the course of the next few years, a new report has revealed.

In excess of one billion mobile users will conduct banking activities on their device by the end of 2017, a new study has established.

According to Juniper Research’s Mobile Banking: Handset & Tablet Market Strategies 2013-17 report published today (January 9th), the popularity of using handheld devices for personal finance purposes will increase markedly over the course of the next few years.

The rapid rate of growth anticipated in this area is reflected in the fact the organisation estimates that 590 million people will carry out mobile banking tasks by the end of 2013 – meaning this number is expected to double in the coming four years.

The overall figure of one billion individuals represents the equivalent of 15 per cent of the total global base of mobile subscribers, meaning the vast majority of users will not switch to this way of working in the near future.

At present, around 50 per cent of people are still “unbanked” in terms of their mobile usage and instead rely on more traditional methods of organising their personal finances.

However, the expected quickness of growth in the number of people conducting banking activities on their handheld devices could mean that more financiers need to look into extending their messaging, mobile browsing and app-based networks.

Juniper Research explained it is already becoming increasingly common for banks to offer such services to their customers.

Nitin Bhas, author of the report, said the simultaneous adoption of all three of these platforms is “advantageous” for lenders, as it means they do not have to change suppliers for different approaches while also focusing on maximising their client reach.

“While messaging remains highly popular and relevant in the financial sector, apps will be the dominant access mode in developed markets with banks reporting an increased number of visits per month on their mobile apps,” the official added.

Dynmark is the power behind global cloud mobile messaging and mobile marketing. We help organisations from SME through to global enterprise, to leverage the power of messaging as a business communication tool, for marketing or operational uses. Read more about Dynmark here.

Dec 4 2012

A third of US mobile consumers bank on the go

The study, from Javelin Strategy & Research, found that a third of mobile phone owners in the US now access mobile banking, up from 24 per cent in 2011.

Javelin looked at the mobile banking features, including apps, web and text banking, mobile alerts and mobile access, offered by the 25 leading retail financial institutions in the US. The firm found that around half of the banks surveyed offer person-to-person (P2P) transfers and mobile remote deposit capabilities, compared to just a quarter in 2011.

Furthermore, more than two thirds of financial institutions now offer the so-called ‘triple play’ of mobile banking platforms – a downloadable app, SMS text and a mobile website – which can be accessed through a range of mobile devices including smartphones, feature phones, and tablet computers. Of the three platforms, mobile app banking has seen the biggest rise in popularity over the past three years, while mobile web banking has witnessed a decline in use. In light of this,

Javelin urged banks to alter their focus to ensure they are investing in technologies which consumers wish to use.

banking-dynmark-smsThe study also highlighted areas of concern, with the proportion of consumers reporting difficulties when trying to access mobile banking services tripling over the past three years from four per cent in 2009 to over 14 per cent in 2012. This is clearly one of the biggest hindrances to the growth of mobile banking, with banks required to ensure that their services are available on a wide range of mobile devices, including tablets and smartphones.

“Mobile access continues to improve, yet year after year more consumers say, ‘My bank offers it, but I can’t access it.’ Considering the multiplicity of devices that consumers use for mobile banking, providing access is a service provider’s headache,” said Mary Monahan, executive vice president and research director of mobile at Javelin.

“Our report shows key user demographics and shifts in consumer mobile banking behaviour and what FIs need to do to meet mobile banking demands for services, device proliferation, and mode of access.”mobilebanking

For the second year in a row, Chase was named the best provider of mobile banking services thanks to its excellent track record of P2P transfers and mobile deposits, as well as near real-time, actionable alerts. Bank of America came in second place as its services were found to be the most widely available, while USAA was named in third spot thanks to its continued commitment to mobile banking.

A number of big brands in the US are also rolling out on mobile payment initiatives, with Great American Chicken Corp, a KFC and Taco Bell franchisee, among the latest to do so. The firm has rolled out mobile payments to 14 restaurants across southern California, giving consumes the chance to pay for their meal with the Kuapay Mobile Wallet app.

Mobile banking has become increasingly popular in the US as consumers become increasingly comfortable with making transactions on the move, a new report has found.

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.

Nov 16 2012

SMS can help banks ‘improve customer service’

Banks across the world are looking at how they can use mobile to improve their customer service, with many firms using SMS as a platform to carry out traditional services.

For example, financial service providers are now allowing customers to access online banking services via text messages. After registering their mobile number, customers receive a single-use PIN code which are delivered to their handset via SMS and can then be used to securely access banking facilities.

Tobias Johnsson, head of business development at mobile payment system Ericsson IPX, revealed that Swedish banks in particular are delivering PIN access for internet banking via text, with 500,000 such messages estimated to be delivered each month.

In addition to one-time passwords for accessing account information, Mr Johnsson added that credit and debit card companies are now allowing their customers to request their account balance via SMS after completing a registration form. After assigning a card for the service, they can find out their account balance by simply texting in the word BALANCE to a shortcode.

“Through this service, customers can access banking services and in turn, the bank receives a permanent presence in their customers’ pockets, whilst lowering customer service costs,” he wrote on the mobile marketing blog.

“By choosing to take advantage of the services a global connectivity enabler provides, banks are able to extend these kinds of messaging services simply and efficiently to the majority of their customers.”

As well as providing services, SMS is also an excellent way for firms to advertise new deals and rates, especially as competition between banking providers continues to increase. 

However, one of the biggest developments in mobile banking is undoubtedly the advent of mobile payment technology, which allows consumers to pay for goods with a simple swipe of their Near Field Communication (NFC)-enabled smartphone. NFC allows data to be transferred wirelessly and securely between two devices over a short distance and is therefore the perfect platform for contactless payments.

A recent study by MasterCard revealed that over 60 per cent of US mobile phone users would be willing to purchase goods and services using their handset and it seems that banks are capitalising on this, with Bank of America (BoA) the latest major firm to embrace the technology.

The company is currently testing a new system that allows a customer to pay at the checkout by simply scanning an image with their smartphone, according to Reuters. Only BoA’s employees will be able to access the program during the three-month pilot as the bank looks to test out the software at its headquarters in North Carolina before rolling it out to its customers.

“The pilots provide us with the opportunity to explore innovative mobile solutions, engage our customers and utilize their feedback,” bank spokeswoman Tara Burke tells Reuters.

Michael Bristow, DMA Mobile Marketing Council member, urged firms not to get too carried away with mobile payments technology as it still has its limitations.

He said: “We’re a long way off from seeing complex products, such as mortgages, being sold and processed entirely through mobile. Saying that, for people joining the workforce now, the mobile is an integral part of their daily (and social) life.

“They have never known life without it. Financial services need to recognise this and stay ahead of the curve so that they can tap into the needs and desires of these mobile-social consumers.”

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.

Oct 16 2012

SMS is the key to unlocking the potential of apps

There’s an app for that.

Apple’s famous advertising slogan to promote the iPhone 3G in 2009 has perhaps never been truer as heighten demand for these bits of software means firms both large and small are creating an app in a bid to boost sales.

A recent report from Juniper Research forecast that more than 66 billion mobile apps will be downloaded by 2016, up from 31 billion in 2011. With app downloads expected to surge over the next four years, revenue from consumer mobile apps is set to rise accordingly and eventually reach $51.7 billion (£32.2 billion).

The majority of this revenue will be generated from smartphone apps, followed by those made for tablets and feature phones. In fact, tablet computers are set to account for a quarter of mobile app revenue by 2015, up from just seven per cent last year.

With the app industry set to explode over the coming years, it is important that firms do all they can to promote their app following its development. After all, it is no good spending countless hours creating a fantastic application to then just leave it wallowing away in an app store.

“If an app is not present in the top Top 100 of its category in a particular store, then – as far as the app-buying public is concerned – it effectively does not exist,” Dr Windsor Holden, principal analyst at Juniper Research in Hampshire, told the Mobile Marketer website.

“Thus, it is incumbent upon the content provider to seek to drive that app into public awareness by marketing that app via various channels.”

Companies clearly need to do all they can to set their app apart from the competition, so how should they go about doing so?

One of the best ways to make mobile customers aware of a new app is to send them targeted SMS messages. After all, 100 per cent of smartphone users can receive text messages, meaning that all of a company’s intended audience for an app can be reached via the medium.

Moreover, unlike email, firms are safe in the knowledge that their SMS message is almost guaranteed to be read. Figures show that 98 per cent of all text messages are read by the recipient, whereas just 10.8 per cent of all emails sent in the first half of 2011 were read. This makes SMS – an inexpensive communication method anyway – a much more cost-effective way to promote an app as companies have to send out fewer texts than emails to publicise their app.

By following a simple set of steps, firms can easily advertise their app via SMS:

1)     Gain customer’s phone number via a lead generation mechanism

2)    Send relevant website address to the customer

3)    Customer will then open the link on their smartphone and open up a landing page

4)    Track the number of people who have clicked through

5)    Redirect users to their app in the app store

And it really is as simple that. So what are you waiting for? Start plugging your app via SMS today.

If you would like to benefit from mobile marketing why not register for a Dynmark Cloud Portal account today, it’s FREE and you get 10 FREE credits to try it out. Or you can sign up to our FREE to SME proposition meaning your get your messaging credits for FREE.

The Dynmark Cloud Portal is the primary interface for interacting with any Dynmark service. From the portal you can gain access to all services and solutions. You are greeted with a full reporting dashboard to show you exactly how you are using the Dynmark Cloud Platform. From there you can access the solutions by choosing the correct tab and clicking through to the relevant service. It’s also where you can purchase or sign up to additional services.