Benefits of Mobile Banking - Assignment Example

Mobile and Online Banking Benefits of Mobile Banking Mobile banking using cell phones provides an array of benefits to the s. Through mobile banking customers can conduct transactions or make bill payments quickly, hence it saves a lot of time. Mobile banking is believed to be quite cost-effective. There are various banks providing mobile banking facilities at a lower cost. Mobile banking has at least one edge over internet banking as for internet baking the customers need an interconnection and a laptop or a desktop.

However mobile banking can be initiated with the help of a cell phone only. It can be done in the most remote locations. This is especially beneficial for people living in remote parts of certain developing countries. Apart from transactions other augmented services like balance inquiry, credit or debit alerts, and payment alerts can be viewed through mobile banking. It also helps customers to make money transfers instantly. Apart from the customers, the banks also benefit from mobile banking as they can promote or sell products loans, and credit cards for a specific target market segment (Unhelkar, p.471). Potential Problems related to Mobile BankingAccording to security experts mobile banking is safer as compared to internet banking.

However, there are various security threats. Users can be exposed to fake messages known as ‘smishing’. Each and every device may not have the facility to perform mobile banking. There are certain banks that do not even provide the facility of mobile banking. Steps to improve mobile adaptionThe increase in the use of blackberry and smartphones is a key indicator that mobile banking is here to stay. Besides, people never wanted to stay in long queues to make bill payments. As far as BOA is concerned customization can really help the bank to target different groups of customers.

The company can launch different types of mobile applications to target different market segments. However, the key to the success would be to follow the KISS (keep it short and simple) approach as customers are likely to hate it if the applications are far too complicated. Another key area would be customer education. Many customers are still a bit hesitant to use mobile banking or internet baking so to speak due to security concerns. Raising awareness among people regarding the safe and sound use of mobile applications related to mobile banking can help the bank to attract new customers.

Key Motivating Factors for offering Mobile BankingThe increasing usage of smartphones or blackberry is for once the key motivator for offering mobile banking. Additionally mobile banking get to be a great platform for competitors also to gain new markets or to create product differentiation. For example, Citibank customers can track down the information regarding their credit card account through the iPhone application. Potential RiskOne potential risk of launching new mobile applications aiding the mobile banking initiatives would be the risk of complexity.

There have been various high-profile examples of failures due to too much complexity.