Mobile banking allows customers to access bank accounts and perform transactions through mobile apps on their phones. Banks are moving to mobile banking to improve customer service, reduce costs, increase reactivity and market share, improve branding, and better serve rural customers by adding value to their lives. As more people use smartphones, mobile banking usage is rising, especially among 25-34 year olds who find it convenient. Customers primarily use mobile banking for notifications, statements, account balances and transfers. The growth of mobile banking will change consumer spending habits and force banks to reduce branches and call centers while finding new ways to increase loyalty and customers. However, mobile banking also presents security risks if phones are lost or stolen.

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2. What is Mobile Banking ?
 It’s a set of applications that enable people to use
their mobile telephones to manipulate bank
accounts, store value in an account related to their
handsets, transfer funds or even access credit or
insurance products.
 It’s about buying and selling products and services
through wireless handheld devices such as mobile
phones, or simply saving money on the handheld.

3. Why Banks Going Mobile ?
 Improve customer Service

Reduce costs

Increase the reactivity of the company

Increase market share

Improve branding

Mobile financial services could be more than successful in rural
area

Add real value to the lives of consumers

4. The Rise of Slate Computing …
 Apple sold 1 million iPads in the first month
since the product was introduced.
 7.8 million iPads and similar devices will be
sold this year, and more than twice that
number next year.
 More than 300 million tablets in world by
2015
SOURCE: IDG RESEARCH & GARTNER

5. Mobile Internet usage will
exceed Desktop usage by

6. The Rise of Mobile Banking
Key Trends:
 The Majority Use Smart Phones
 The Key age segment is 25-34 year olds
 Mobile Banking users are more affluent
 Men outpace woman
 Speed & Convenience are Top Benefits

7. What consumers want from
Mobile Banking
 Notifications: 73%
 Statements: 48%
 Notification of account limit: 47%
 Transfer funds between accounts: 35%
 Pay accounts: 28%
 Balance enquiry: 74%
 Make a purchase: 21%
SOURCE: BERG INSIGHT

9. Technology Changes Behavior
CONSUMERS WILL …
• Reduce Visits to Branches
• Reduce Calls to Contact Centers
• Change Their Spending Patterns
• Generate More Transactions
• Become more educated & aware of their money
BANKS WILL …
• Realize a Reduction in Costs
• Be able to Generate More Loyalty
• Be Able to Increase Their Customer Base
• Create new mechanisms to stimulate impulse buying
• Create new sales and marketing approaches
• Mobile banking will change the competitor profile
SOURCE: MOBILE-FINANCIAL.com

10. Security Threats & Concerns
Mobile handhelds are compact, portable and easily lost or stolen.
Security requirements:
1. Confidentiality
2. Authentication
3. Integrity
4. Non-repudiation
5. Authorization

13. Created By
Vaibhav Kubadia
Twitter Handle: @vaibhavkubadia
E-mail: vaibhav@digitalmarketing.ac.in