Germany. Mobile Banking, availment of bank-related financial services
via mobile devices such as cell phones, is on the verge of staging a
remarkable come-back. After almost 4 years of oblivion it is slowly
but surely showing signs of a healthy recovery as a study by
University of Hamburg (UHH) reveals. A stunning growth in
the offers of Mobile Banking can be observed not only in the German
banking sector but worldwide, says Dr. STEPHAN BUSE who led this
research project along with Mr. RAJNISH TIWARI of Chair of
International Management at UHH.
Mobile Banking, which builds a cornerstone of Mobile Commerce,
consists of Mobile Accounting, Mobile Brokerage and Mobile Financial
Information. While the need/wish for mobility seems to be the driving
force behind Mobile Banking, the launch of UMTS technology has
provided it with the necessary verve.
The study titled THE MOBILE COMMERCE PROSPECTS: A STRATEGIC ANALYSIS
OF OPPORTUNITIES IN THE BANKING SECTOR surveyed more than 450
potential customers and over 50 banks worldwide. The survey detected
large-scale consumer interest in Mobile Banking services. The interest
and the willingness to pay however varied for individual services. For
instance, over 92% of all survey participants were willing to conduct
transactions via mobile phones. Nearly 60% were even willing to pay
extra fee to utilise mobile remittance facilities. Services perceived
to be complicated however received a poor response, e.g. the option of
subscribing insurance policies via mobile devices was rejected by an
overwhelming majority.
According to authors such responses underscore the necessity to design
products in strict adherence to the needs and wishes of relevant
target groups. Mobile Banking has transcended from being a purely
technology-driven product to a business-focussed customer service. It
presents a sizeable opportunity for banks to offer value-added,
innovative services and attract new customers from technology-savvy,
financially affluent sections of the society.
Time seems to be ripe to convert this non-negligible customer interest
into business-driving customer demand, concludes the study and
recommends a proactive attitude on the part of the banks. The study
predicts that Mobile Banking services are all set to become a standard
product on the lines of Online Banking.
