Impact Of Mobility On The Banking Industry

By Author: Susan Smith
Total Articles: 132
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The mega trend of mobility has had a game changing impact on almost all verticals. One major shake up that it has caused is in a vertical that in its steadfast approach to its business, is hard to shake: the banking industry. With mobile banking growing at a fast pace among US consumers, there is a major shift in the way financial transactions are executed today. Just like electronic banking replaced tellers, and online banking took away the need to visit the bank, mobile banking has put the power to carry the power of managing their accounts in the pocket of the customer.

There are some key factors that have lead to the explosion of mobility adoption in the financial sector. These factors are generally applicable to most other verticals too:

Proliferation of mobile applications: The shift towards mobile becoming the compute platform of choice for the populace is fueled by the strong application ecosystem, which allows them to accomplish so much on the go. It was a matter of time before they started asking the same from their banks. And the banks delivered.

Fast paced lifestyle: The highly competitive ...
... world today has left people with little time and patience. People want less cumbersome, and fast execution of their transactions.

Value added services: The features of smart devices like geo location allow for enhanced services like locating the nearest ATM, and check scanning. These features make the customers stick with them.

Now lets explore the impact of mobilization on the industry.

Customer experience- From a customer’s perspective, managing money while ‘on the go’ provide them greater customer satisfaction. It offers high convenience and comfort value since their bank is in their pocket, and travels with them.

Mobility offers the flexibility of anytime, anywhere access. It saves the time and fuel because now the customers can check account balance, pay bills, transfer funds from one account to another, receive email/text alerts, and make a check deposit by taking a picture of the check without having to visit to their local branch.

Moreover, mobile banking is safer than internet banking. It offers security by adding a secured password that prevents unsolicited or unauthorized access to your account even if the mobile device is stolen or misplaced. Thereby, reducing the risk of fraud. Further, browsing through a mobile optimized site offers a pleasant and faster experience for the users

Operational efficiency- Mobility in banks is not just a tool to connect and reach customers but also a tool to connect within the organizations. It empowers the workforce and enables them to manage Day to day operations such as approving payments, checking balances, viewing reports, managing corporate accounts etc. through the mobile device. Mobility has streamlined the banking process which has reduced costs and increased productivity

Corporate banks – The biggest benefit of mobilization of business functions is that it allows your business to reach out to potential customers and influencers in areas where you don’t even have a location. Banks can grow their presence to remote locations just by having an ATM, through the power of mobility. The deterrent of not having a branch is no longer the cause of not having a local customer base.

Another important impact is that the reputation of the financial organization can soar just because they have delivered a great mobile product. Even banks with not the best of customer service have seen an increase in popularity because their smartphone application was wondrous. But be aware – it is a double-edged sword. If it can make you, it can break you too, if you fail to live up to the customers’ expectations.

The author is associated with one of the top enterprise application development companies, enterprise application development Dallas and mobile banking application development