All said and done, this channel is not widely accepted by people and to a great extent by commercial banks. Most of the mobile device manufacturing giants and pocket-app companies are introducing new products in the market.
People are apprehend to use these products and devices because of
security concerns, while this channel is as authentic as web-sites.
Second biggest reason is learning – downloading mobile applications
suited for your handset, set-up the procedure, get authenticated by
customer’s bank is a tedious (but one time) process, which not worked
well due to normal customer latency. “In developed countries, there
were a lot of mobile banking services and they failed,” says Ignacio
Mas, an economist who works for the Bill and Melinda Gates Foundation.
The reason, he believes, is that for people who already have access to
banks, as most people in the developed world do, it’s difficult for such
services to compete.
Some of the main usage which are working well in the mobile banking are:
– SMS based alert system
– SMS based general enquiry (e.g. total balance in account)
– Authorization and Authentication code
– PIN services
One of the biggest factor which may prove this channel successful is-
easy availability of the smart phones (at cheaper cost) and pocket
applications. Additionally, technological advancement in network
specially 3G technology, which is available in most of the countries at
an affordable price(penetration of 3G is not yet known). Using 3G on
smart phone will provide an eco system for the mobile banking to
accelerate convincing customer to use mobile banking. (Smartphone sales
worldwide grew 12.7 percent in the first quarter of 2009, according to
recent figures from research firm Gartner)
The next big thing which will make people aware of the concept and
technology is electronic wallet , which has already been tested by VISA
and Master cards. This technological advancement exploits the NFC chip
concept and provides many banking features on the mobile mainly
contactless payments. This works similarly as chip-n-pin device with
contactless facility. Once this is proven in a wider market and people
start using, it will be more convincing factor for the banks to customer
to get fast adoption of other tools and techniques.