Mobile Banking Technology

The technology of mobile banking can also be referred to as mbanking, M-Banking or SMS banking. It denotes the carrying out of account transactions, making payments, checking balances and other varied banking services, using portable devises such as laptops and mobile phones.

The scope of services can include, but not limited to, administering accounts, facilitating the carrying out of stock market and bank transactions and accessing customized information.

In today’s world, mobile banking is mostly performed using the Short Message Services (SMS), or internet. It can also be done using particular programs called clients, which are downloaded into the mobile equipment.

Financial services world wide have been revolutionized by the advent and technological advancement of the internet. It has changed the way business is conducted, empowering business organizations and individual with models such as the mobile banking and other new ways to give to the customer, access to information 24 hours a day.

This has attracted other players involved in financial industry like online brokers, wealth managers and online banks for mobile banking. Over the recent past, the wireless and mobile market has experienced the quickest growth in the world. The numbers of customers subscribing to mobile networks, some of whom use mobile banking, exceed the 2.5 billion mark. This technology has created a paradigm shift on the banking industry.

Benefits of mobile banking technology to the bank are many. It can be used to promote and protect growth.

Banks realize an increase in market penetration. This is made possible as the underserved population is reached. Branches and networks of banks may not be available in certain areas of a country but with internet accessibility, more customers of the bank will be accessed. The bank is also able to sell much more of their services to potential customers as well as existing customers.

They can use the real-time opportunity to immediately introduce services or emphasize benefits of existing services. They are able to further create new services that are customer focused and therefore easily address unmet needs of customers.

Banks are able to retain customers and offer them quality services and hence reduce churn that is often times experienced in the banking hall. Banks also find costs of service provision reduced while using mobile banking technology.

Benefits to individual customers are also varied. The individual enjoys control of funds and easy accessibility of banking services. Transfer of funds is made less complicated and as described by the United Nations, mobile banking technology steps in to avail funds and relief disasters across the world. Further, the mobile banking technology does not discriminate on low of high income earners. As long as one has a mobile phone or an internet connection, one can enjoy customized banking services from anywhere in the world that the bank has accessible facilities.

The world is a much smaller place in as far as business is concerned and business can be done between countries that are widely placed by geography and this creates economic relationships. Funds are easily transferable from one organization to another, promoting much income for the banks as they charge small monies for the online services.