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Mobility in Banking
Mobility in Banking
Mobility in Banking
Mobility in Banking
Mobility in Banking
Mobility in Banking
Mobility in Banking
Mobility in Banking
Mobility in Banking
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Mobility in Banking


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Our Whitepaper on mobile banking solutions discusses the changing landscape of mbanking. It also discusses key challenges and drivers in mobile banking and how mobile banking apps can help banks …

Our Whitepaper on mobile banking solutions discusses the changing landscape of mbanking. It also discusses key challenges and drivers in mobile banking and how mobile banking apps can help banks optimize their resources and increase efficiency.

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  1. Mobility in BankingUnwiring the bank
  2. A report by Juniper Research predicts that mobile banking users across the globe will reach 530 millionby 2013, up from just over 300 million in 2011; making mobility a key strategic channel for the banksencompassing the entire set of banking operations.The fascinating success story of mobile banking solutions does make us inquisitive and tempts us to askand find answers to a few questions like- how the banking landscape has changed over the years? What’sdriving the growth of mobile banking? Where it’s heading? And, how smooth is the ride ahead? As thenext wave of banking mobility arrives, our cover story endeavours to get an overview of banking mobilitysolutions and find answers to above questions. mBanking or Mobile banking is a term used for performing banking transactions such as account transactions, bill payments, fund transfers, credit applications etc., on devices such as a mobile phone, Personal Digital Assistant (PDA) or a Tablet. The Changing Landscape… Mobile Phone and Tablet usage are soaring. Access to mobile networks is now available to 90% of the world population and 80% of the population living in rural areas.Mobile banking which started-off with banks offering services like balance inquiries, check-book requestsetc., via SMS and later with the browser through WAP and GPRS has, over the years, widened its scope,engulfing a huge part of banking operations, both internally and externally. The initial changes have beenno less than dramatic. As mobility takes the centre stage in the technical infrastructure of banks, businessprocesses are being reengineered and new models explored. Mobile payment processing, location basedservices, add-on services etc., have led to greater extension of mobile solutions enabling banks to providea consummate banking experience to the customers.Today, banks not only use mobile devices and applications as a channel to offer services to customers butalso use it as a tool to connect within the organizations, empower their workforce and control its variousprocesses and assets. So, we not only see basic banking operations performed through mobile devicesand applications but also see increased use of mobility solutions within the organizations in complexoperations like asset management services, loan approval processes and database management. Mobility in Banking : Unwiring the bank/ 2
  3. User Bank Anytime, anywhere Added medium to connect access. and reach customers. Easy and rich Fewer resources, interface. cost reduction. Unique experience, Higher customer personalised services. satisfaction. Highly Secured. Competitive edge. Easy installation. Brand building.The customer attitude towards mobile banking has also undergone a sea change. Far from being waryof carrying out financial transactions on mobile, as was in the early days, people, owing to ubiquity andconvenience, today, have nicely warmed up to the concept of banking on their devices and are prettycomfortable paying utility bills and transferring funds on the go. Mobility in Banking : Unwiring the bank/ 3
  4. The Drivers…Several factors are at play behind the growth of mbanking or mobile banking. Smartphones and Tabletshave become ubiquitous. Consumers are welcoming banking services on their device. Bandwidth isgetting breezing faster. Mobile apps have gone powerful and much-secured to integrate with bankingprocesses and operations. While powerful game-changing drivers like faster ROI, higher productivity anda direct and personal communication channel with the customer base has attracted banks to embracemobility, customers are buoyed-up by anywhere, anytime and quick services. Major Concerns of Banking How mBank can address the Industry challenges? • Improve customer acquisition and • Reduces expenses for banking retention. institutions and makes banking • Revenue generation and cost accessible to remotest locations. containment. • Anytime, anywhere access leading to • To reach to the undeserved populace. higher customer satisfaction. • To provide unique banking experience, • Fewer resources leading to cost 24x7 access. reduction. • Customer privacy. • Facilitate staff member interactions and • Best practices and decision support coordinate activities. processes. • Place vital tools and current information • Brand building through innovative in the hands of consumers and service marketing channels. providers. • Provides marketing and business benefits. Mobility in Banking : Unwiring the bank/ 4
  5. The Big Gains… The cost to serve comes at $0.56 per interaction for the IVR and $0.40 for mobile. -Yankee GroupMercatus LLC Survey on mobile banking came up with some interesting results validating how mobilizingthe operations and services can boost customer acquisition, brand perception and sales.60.00% 53.60% Mobile Financial Services penetration among US mobile phone users. 50.30%50.00% 44.40%40.00% 36.20% 27.30%30.00% 19.60%20.00% 10.80%10.00% 6.70%0.00% 08 09 10 11 12 13 14 15 20 20 20 20 20 20 20 20 Source : Mercatus LLC SurveyThe report reveals that- • Banks offering mobile financial services can increase new customer acquisition by as much as 60%., • Mobile financial service capabilities have more impact on a consumer’s decision to select a bank than availability of online banking, access to ATMs, or nearby branches. Mobility in Banking : Unwiring the bank/ 5
  6. • Banks offering mobile financial services should anticipate as much as a 60% increase in sales lift. • Customer acquisition, promotional offers including mobile financial services out-performed those that did not include mobile financial services by nearly 30%. • A decrease in cost of acquiring a new customer by as much as 20%. The Possibilities…Today, mobility for banking is not only a viable medium but also an enabler that can act as a force multiplierfor other channels. Mobile devices and apps offer considerable value to banks both from a B2E and aB2C perspective. Mobile applications are swiftly replacing the mobile websites of banks by providingbetter experience and secure transactions. Some banks have already introduced mechanisms that enableinteraction between the ATM and the mobile devices of the customer. Armed with a smartphone orTablet, a user can connect his device wirelessly to the ATM, authenticate and can make a withdrawal orfund transfer through it without any debit or credit card. Within the organizations, powerful enterprisesolutions have facilitated performing a spectrum of services on mobile devices. Bank employees, today,not only use mobile devices to connect and interact within the organization through mail, messenger etc.,but also use it to access various company resources like Management Information System, Transactionmanagement and Sales Force Automation etc. Mobility solutions for banking are making processes leanerand quicker not only with their own might but by also complementing other technologies. »» Payments: Banks are rapidly leveraging mobility solutions to enable customers to use their mobile devices to make payments at stores. Similarly, efforts are on, to facilitate person-to-person payments where money can be transferred from one person to another like PayPal. »» Remote Data Capture: The facility to deposit documents like checks; pay order etc., by simply scanning the check and sending the image to the bank rather than depositing the physical form in the bank. »» Location based Services: Many banks have already embraced location based capabilities of mobility solutions to locate ATM’s, bank branches etc. »» Call Recording: According to statutory regulations, banking organizations are required to record calls to and from customers and banking mobility solutions can facilitate in doing that. Mobility in Banking : Unwiring the bank/ 6
  7. The Challenges… The ride, however, is not so smooth. There are multiple challenges facing the banks as they move on to leverage mobility solutions. There is a massive proliferation of devices differing in form, Platform Scalability functionalities and features. The challenge will be to come-up with a solution that fits all. While the world may have been stepping into 4th generation of internet connectivity, still bandwidth latency and coverage is an area of concern if mBanking has Integration Key & Challenges Customer to truly stand to its promise of anywhere, anytime Deployment Experience banking. Security of banking transaction over the Model air is another complicated challenge which calls for continuous intervention as the technology Data evolves. Decision makers should also need to keep Security an eye on the scalability and reliability of mobile & Fraud infrastructure as the usage grows and mobile Detection devices become the major channel from yet- another-channel of contact between customers and the branch. Mobile Banking will be one of the greatest success stories of the mobile commerce industry over the next five years, as consumers observe the benefits of accessing banking services on the move. As customers become comfortable with undertaking basic banking functions on their mobiles, an increasing number will adopt transactional-based banking enabled by the enhanced functionality afforded by smart devices, exposed to an all-immersive consumer experience. – Sonia Lalli, Juniper Research The Future…A report by Juniper Research predicts that mobile banking users across the globe will reach 530 millionby 2013, up from just over 300 million in 2011: making mobility a key strategic channel for the banksencompassing the entire set of banking operations. Mobility in Banking : Unwiring the bank/ 7
  8. Near Field Communication ( NFC) is the next generation wireless communication technology which enables real-time data exchange between compatible devices. The communication between two NFC enabled devices takes place with a simple proximity wave or by touching the two devices to each other. A user can make transactions just by touching his NFC enabled device to a NFC credit card reader. All the transaction information then is securely stored in the smart card chip integrated inside the device. NFC technology thus enables easy, fast, and secure way of mobile payment.In addition to a steady increase in the number of banking services on their mobile devices, the quality andlevel of mobile experience will also be a detrimental factor in the growth of mobile banking. Merchants,keen to maximize their customer base, would look for new, convenient ways for their customers to shopand pay. Sample this: You are shopping. You carry all the items in the shopping-cart to the bill desk, getthe bill and put your hand in the pocket to take out your wallet…but, this time your m-wallet. Yes, assmartphones get powered with NFC (Near Field Communications), mobile devices will turn into walletsand cashless transaction will get a new meaning. As a result, banks have to think beyond conventionalpossibilities when it comes to mobile banking. From being your bank’s branch to your wallet; the mobilephone will do a lot in future. The trends points towards a future where everything will be real-time andany-time and mobile devices will emerge as the major medium of consumption. Tapping onto theopportunities available will help banking institutions derive enduring value from mobility solutions. Our Recommendations… • Embrace mobility: Mobile banking is here to stay. And offers tremendous value to both, banks and customers. The opportunities are endless. • Focus on consumer experience: Create a smooth, user-friendly and secure mobile banking environment. • Pick the right platform: Diversity in screen sizes, functionalities and operating systems necessitates banks to adopt a multi-platform approach. • Keep an eye on analytics: Monitor user behaviour. Customer intelligence will be the guide for future. • Lay down the groundwork for next generation of m-banking: Emerging technologies like NFC, RFID etc., promises more opportunities. Be ready to seize them. Mobility in Banking : Unwiring the bank/ 8
  9. The Beginning…The world of convenience banking on mobile phones and Tablets is pretty engaging. A powerful valueproposition! However, it is just the beginning. The swift pace of change in the mobile technology isopening new opportunities, driving innovation and prompting banks around the world to ask- what else?A big shift from- why go mobile, a few years back? The evolution has led many banks to not only seemobility as an enabler towards greater customer access to their services but also as a catalyst for a largerrole in their lives. Mobile Banking is set to go beyond its current informational and transactional role. Bankshave a window of opportunity to seize the initiative. Procrastination is no longer a choice. Adoption is theonly way.About [x]cube LABS[x]cube LABS is one of the leading mobile appsdevelopment and consulting firm, headquarteredin Dallas, U.S and with offices in New York and Reach [x]cube LABSHyderabad, India. With expertise across all the connect@xcubeLABS.commajor mobile platforms, [x]cube has deliveredover 500 apps till date and has an enviable clientlist comprising of some of the biggest brands like 1-800-805-5783GE, Intel, Texas Instruments, Hasbro, Mattel and24 Hour Fitness. [x]cube’s understanding of the www.xcubeLABS.commobile space and technology, complimented byits rich experience across all the major industryverticals and the capability to deliver end-to-end solutions, make [x]cube the perfect mobileconsultant of choice.To integrate your enterprise people, processes and products with customized, avant-garde mobilitysolutions or to explore mobility opportunities in your enterprise with our experts, please feel free tocontact us at encourage you to continue exploring our website ( ) to find out more aboutour services. [x]cube is the premier mobile solution partner for companies and individuals creating the next generation of digital applications. [x]cube develops custom solutions for the iPhone, iPad, Android and Windows Mobile platforms. [x]cube is a division of PurpleTalk, Inc. | 1-800-805-5783 |