Taking mobile banking corporate


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Banks can hasten the adoption of corporate mobile banking by leveraging their existing corporate Internet banking offering – that their customers are accustomed to – to provide a similar, seamless experience on tablets, smartphones and other mobile devices. A browser-based mobile banking service usable on tablet devices is more likely than downloadable apps on smartphones to succeed with corporate users who are comfortable with mobile devices but less so with specialized apps. Last but notleast, the mobile banking solution must be workable on a wide range of devices and platforms.

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Taking mobile banking corporate

  1. 1. Taking Mobile Banking CorporateUniversal Banking Solution System Integration Consulting Business Process Outsourcing
  2. 2. It’s ironic that in a world that has gone mobile, treasury executives access to critical informationcorporate treasurers and CFOs are still tethered and tasks even when on the move.to their desks because they need computeraccess to issue approvals using corporate Independent technology vendors of consumerInternet banking. mobile banking applications have only now started to explore this space with the expectationWhile consumer mobile banking has soared in that the trend of equipping company executivesrecent years ever since the smartphone arrived with smartphones and tablets will favor theon the scene, its corporate cousin is yet to adoption of corporate mobile banking – yet in itstake off. However, according to various industry infancy – in the not too distant future.participants, there is significant untapped demandfor corporate mobile banking, as those finance Most solutions offer popular functions such asprofessionals who use mobile banking in their basic account operations (balance check,personal lives – not just on mobile phones but on transfer, approval etc.), alerts about importanta variety of devices including tablets – want the events as well as two-way messages that cansame convenience at work. be used to initiate action, and exception management to allow ‘out of the way’ approval.This optimism is corroborated by a recent Of these, approvals and alerts on critical eventssurvey of 267 bankers, in which over 40% of such as inward and outward payments andrespondents said that they would likely use ‘out of office’ delegation of authority are thecorporate mobile banking to check account most preferred.balance or transfer funds. The treasurers amongthem were even more enthusiastic – more than The above functions may be augmented withhalf said that they would be interested in advanced features like vendor payment facility,advanced corporate mobile banking functions accounts payable and receivable informationincluding transaction approval and payment viewing, transaction hold and release, cash andinitiation, and more importantly, a sizeable number treasury management services and reporting,were willing to pay for these facilities. electronic invoice generation over a tablet device, payroll processing and ‘’positive payAll of which naturally leads one to ask why decision” to confirm or deny the payment ofcorporate mobile banking isn’t a raging success checks after viewing their scanned images onyet. The single largest reason behind the mobile. Although the majority of banks offer onlypoor adoption of corporate mobile banking is basic corporate mobile banking functions, studiesa serious concern about data security. But indicate that the higher screen resolution andnow it is hoped that improvement in the optimized experience of tablets will encourage thesecurity perception, convenience, experience usage of advanced services in future.and consequent adoption of consumer mobilebanking will rub off on the corporate version to Modes of Corporate Mobile Bankinggive it a fillip in the near future. Although individual consumers use mobileWhat is Corporate Mobile Banking? banking in a variety of modes including SMS, USSD, Browser-based and Downloadable Apps,Corporate Mobile Banking is currently an only the last two are relevant to the corporateabridged version of Corporate Internet Banking. version. It is most logical for banks to startSome banks have developed in-house solutions with the browser-based version, because theyto enable their corporate customers operate can leverage their existing Internet bankingcompany accounts using mobile devices to fulfill infrastructure, technology, processes and securitya variety of functions including transaction mechanism to launch a corporate mobile bankingapproval, fund transfer, balance check and wire offering. Besides cutting investment and leadpayment. It is easy to see that these solutions time, this arrangement also allows banks toimprove productivity by providing finance and apply the same multi-factor authentication used Taking Mobile Banking Corporate
  3. 3. in corporate Internet banking on the mobile to give least, the mobile banking solution must beit additional safety. workable on a wide range of devices and platforms.While downloadable apps are easy to use and It is vital that banks create awareness aboutobviously superior from a user experience point the strong security features of mobile banking,of view, they have certain drawbacks such as the especially its robust data transmission andstorage of data on the mobile device for meta authentication mechanisms.caching, which increases the risk of data theft.Therefore, banks offering this service must Banks can further improve the efficacy ofensure that such data is completely cleared once corporate mobile banking by integrating it withthe application is closed. their customers’ ERP systems.Challenges of Corporate Mobile Banking Although corporate mobile banking is a potential source of revenue for banks, they must priceUndoubtedly, countering the negative security it attractively. It has been observed thatperception of corporate mobile banking remains corporates who say that they are willing to payit’s biggest challenge. In this case, security fears for a corporate mobile banking facility in researchrelated to ID/data/device theft are much higher surveys, frequently back off when they actuallythan in consumer mobile banking, given the need to make that decision.volume and sensitivity of exchanged data, andthe impact that any lapse could have on the It is also important to target this service at thebank and its corporate users. The heightened right users within the right companies. Vendorsstandards of risk management and regulation in believe that the sweet spot is in the small andthe aftermath of the financial crisis have turned mid-sized corporate user segments. Banks mustbanks even more cautious about adopting identify the executives with the greatest needcorporate mobile banking. for corporate mobile banking and tailor their solutions to the typical actions – like issuingAnother challenge is providing a holistic approval or interacting with the bank’s Relationshipview of the global accounts for large multi- Manager – that need to be performed by thesenational corporates. executives while on the go.The multiplicity of mobile devices and operating What Lies Aheadsystems is also posing a challenge to thecreators of corporate mobile banking offerings, Market watchers feel that consumers’ need forwho must not only provide functional, easy to anytime, anyplace access to various servicesuse and secure, but also device agnostic solutions. will also seep into their corporate life. And as companies continue to invest in the latestKey Success Factors gadgetry – smartphones, tablets and that which is yet to come – to improve executives’ businessBanks can hasten the adoption of corporate productivity, the outlook seems positive formobile banking by leveraging their existing corporate mobile banking, which has had a slowcorporate Internet banking offering – that start thus far.their customers are accustomed to – to providea similar, seamless experience on tablets, Indeed, major technology vendors seem to agreesmartphones and other mobile devices. A with this assessment, and most of them will havebrowser-based mobile banking service usable on a smartphone-based corporate mobile bankingtablet devices is more likely than downloadable offering in place at the end of this year. Whatapps on smartphones to succeed with corporate they need to do to ensure its success is convinceusers who are comfortable with mobile devices prospective customers about its safety, enablebut less so with specialized apps. Last but not it to work on a range of devices, especially Taking Mobile Banking Corporate
  4. 4. tablets, and ensure that it has all the features • Mobile Corporate Banking Moves Up thethat finance and treasury executives would need Agenda, March 30, 2011when they are away from the office. • Corporate Banking by Smartphone - Can YourReference: CFO Work From the Road ... or His Childs Soccer Game?, February 9, 2011• Tower Group : Report on “Mobile Corporate Banking: More than Fine Tuning the • Will Mobile Corporate Banking Fly?, David Channel”, May 30, 2011 McCann, November 2, 2010• Aite : Report on “The Business Case for Offering Corporate Mobile Banking Services”, Author Oct 2010 Arunnima B S Principal Consultant - Finacle Product Strategy• Corporate Mobile Banking Presents Untapped Infosys Limited Opportunity for Banks, May 9, 2011 Taking Mobile Banking Corporate