Introduction
Traditionally, banks did not consider their clients to be important because they had a large number of customers. This norm has changed because the banking industry faces global competition in the current money market. The new-fangled economy takes the idea of e-marketing as inevitable. As a matter of fact, the banking sector has highly embraced competition, globalization, and new technological innovations.
Mobile and Online Technologies
Shroff defines mobile banking as a technique that is employed in carrying out banking transactions via mobile devices, such as smart phones; which have the needed facilities. The types of banking transactions include performing balance check, paying bills, and carrying out account transactions. Online banking refers to the process of carrying out bank transactions, such as paying bills, depositing, and withdrawing money via the internet. Mobile and online banking are inseparable in essence because they both use internet-enabled smartphone.
Ideally, the operations of Mobile banking are similar to those of internet banking. These operations encompass text banking, mobile web banking, and banking apps. Text banking is regarded as a simple method that uses message-enabled mobile phones. In this method, a person signs up with his or her bank information and obtains account information via text message. For instance, if someone types the word ‘balance’ in his or her phone and then texts it to his or her bank account number, the bank will reply via text message. The text message reply will contain the available balance in the account as well as the credit card balance.
Similarly, Mobile Web Banking works in that manner, but it has a broader functionality. To begin with, it can allow an individual to transfer funds from one account to another. Furthermore, it can enable a person to check account balance pay bills. Smartphones, iPads, or Samsung Galaxy phones with an internet access can be employed in carrying out these banking operations. Banking apps comprises of all web-banking features that are essential to bank details of an individual. These features have been designed considering the specifications of particular banks and the type of gargets or phone to be used.
Upon the digitalization of the innovations in banking sector, the number of clients has escalated. Despite the fact that mobile and online banking are still developing, they have been greatly acknowledged because they have enhanced customer satisfaction and retention than traditional method of banking. Moreover, mobile and online banking has significantly shown an improvement in customers’ trustworthiness as well as reduced operation costs in the banking sector. Nonetheless, they have escalated the customer self-service by bringing to an end the traditional banking methods, such as ATMs and call centers.
Mobile banking is convenient because it allows an individual to access money anywhere and anytime. Moreover, an individual can review his or her account balance, as well as check credit or debit card at his or her convenience. Through mobile banking, one can use his or her account to transfer money, monitor the availability of funds, and even pay bills.
Mobile and online banking have managed to keep clients out of long queues in the banking halls. This way, they have prevented them from always seeking customer care services for information. All these services are beneficial to the banks because they greatly reduce the total cost in terms of staffing and labor costs. The safety of mobile banking has enabled the majority of clients to sign in. As a result, the banks do not incur the cost of serving clients at the counter.
Online banking and paying bills through the internet is vital because it is capable of reducing fraudulent activities in the banking sector. Online banking can also protect the businesses or consumers from unauthorized access to existing accounts or opening of new accounts by colluding staff of the banks. In addition, electronic banking can assist the bank staff to identify fraudulent individual and thus prevent stealing of personal information on bills, credit cards, and bank statements by fraudsters. Moreover, clients are in a position to monitor their banking transactions on regular basis.
In as much as the banking sector continues to enjoy the merits of new technologies, they need to rethink and wrestle with a number of key challenges that are likely to come up. In order to effectively achieve this, the banking CEO’s and executives will have to overcome a number of complex hurdles. Some of those hurdles can either be external or internal.
The banking sector needs to form a micro understanding for the company’s objectives in mobile channel. These include revenues, market in terms of protecting and capturing of shares, and developing strategies and business plans that will have a long-term effect on the company, as well as the customers. The largest consideration rotates around the technology. This process requires banks to develop a WAP that will enable mobile devices to integrate into the banking systems. Moreover, the security concerns of online banking ought to be a factor to be considered. There have been claims that online banking is regarded as not being safe due to cyber crimes. These can have an adverse effect to the company, such compensating clients and losing its customers.
Conclusion
Mobile banking as well as online banking has greatly expanded in the 21st century. Every banking institution is striving to employ the latest technology. This trend has replaced the traditional method of banking. As a result, there has been an increase in competition, customer relationship has improved, and banks have greatly reduced their costs of operation.
Bibliography
Bojack, H, New perspectives on Microsoft Expression Web: Introductory, Course Technology Cengage Learning, Boston, Mass, 2009.
Shroff, FT, Modern banking technology, Northern Book Centre, New Delhi, India, 2008.
Streeter, B, ‘100 years of ABA Banking Journal’, ABA Banking Journal, vol. 100, no.1, 2008, pp. 14-15.
Tobbin, P, ‘Towards a model of adoption in mobile banking by the unbanked: a qualitative study’, Info, vol.14, no. 5, 2012, pp. 74-88.