Since the inception of mobile technology, there has been a tremendous glow in the life of many worldwide. Not only has it enhanced the medium of communication and brought in a very handy source of entertainment into our daily lives, it has been of a significant use in other important fields too and banking is one of them. Mobile banking enables users with a smartphone to access account and credit card information, receive notifications regarding transactions, as well as carry out banking transactions around the clock. It has completely revolutionized the concept of banking, where now one can easily access the banking system on his/her mobile device.
Statistics show that developing countries lead the race with a higher mobile banking penetration (46%) as compared to the developed countries (38%). This is a result of the trend that wants service and shopping channels having strong grow in their mobile counterparts. For example, mobile is the dominant retail shopping channel in the Asia Pacific region, where 32% shop with mobile as opposed to only 21% with PC
But mobile banking, apart from the level of comfort it provides to the customers, can also significantly lower the cost of banking transactions. Transaction cost is 42 times lower than physical banking at a branch, 12 times lower than phone banking, and even half the cost of an online banking transaction.
The advent of mobile banking has made the competition among banks stiffer. As per Google Financial Insights, 1 in every 6 people switch banks due to unsatisfactory m-banking services. This has led the banks manage their m-banking channels seriously by updating the services regularly to meet the consumer demands. As a result, banks are now witnessing a higher number of product sales to their m-banking user base as compared to non-mobile adopters. At the same time, a number of purely mobile banks have emerged, with Simple and Moven being the pioneers. Some of the big traditional banks have also invested in the area, such as BNP Paribas with Hello Bank, AXA Banque with Soon Banque
Although banks give primary concern to ensure online-security, yet there have been growing number of cases of mobile banking attacks worldwide. As per the international software security group - Kaspersky, around 45,032 users across the globe were attacked with mobile banking Trojans at least once in the year 2014. Hence, security is the top concern for non-users, who are willing to use mobile banking if suitable measures are taken. So the challenge lies in figuring out how to use the mobile user experience to foster high-level customer engagement and ensuring 100% security on the channel.