Mobile phones have become such an indivisible part of people's lives that now people have gone to the extent of recognizing it as a reflection of personality. With greater advancements of technology and the increasing need to manage a steady work life balance, individuals are quickly adapting to communication on the move. Research shows that mobile phones will replace desktop PCs as the top Internet access platform in the coming years. Transactions which were once called e-commerce are gradually transforming itself to m-commerce where they are initiated with the use of one’s Mobile.
As the need arises to initiate transactions while on the move, comes in to view, Financial Institutions are quickly exploring the Mobile phone as an alternative channel to market its services.
A typical day at the bank mirrors long waiting queues, long processes of verifying ID numbers, updating pass books etc. and added to these, one must consider the rising fuel cost and time taken to carry out a general banking transaction. Majority of the working class performs banking activities during lunchtime and therefore one must keep a track of time to accomplish all these within one stipulated lunch hour.
For these very reasons local Banks are seeing an increased momentum for alternative banking channels. The potential of Mobile Banking in Sri Lanka lies supreme to its alternatives. The major difference in Mobile Banking in relation to its counterparts is that transactions can be performed anywhere in complete independence of location, with absolutely no time constraints, be it at work, on the go or even at a meeting. The Mobile Banking system only requires a user to provide his user name and identification PIN to initiate a transaction.
Most Banking transactions that once took up all day could now be performed in a couple of seconds ensuring convenience and the highest degree of security. Today, this pocket banking experience can assist a user in checking accounts, transferring money, paying bills, cheque realization/
Mobile banking and payments has also emerged as the "green" financial management option for consumers. A transaction performed via the Mobile phone eliminates the need for paper bills and statements and also reduces the carbon foot print caused by the burning of fossil fuels in transportation. Therefore Mobile Banking automatically becomes a value addition for people to start living a greener lifestyle.
The mobile banking system has also the potential to transform how consumers purchase products, exchange money and manage finances on the go. This mobile wallet will replace credit cards to purchase goods at supermarkets or filling stations and send money to friends or family living abroad via SMS even without a bank account. In the Philippines there are approximately 3 million such registered users and most does not have a bank account.
Tower Group, a leading research and advisory firm focused exclusively on the global financial services industry, estimates that in the USA, Mobile banking will reach close to 6 million users by the end of 2008, and forecasts 42 million active users of mobile banking by 2012. Thus globally the potential lies but the users show a lack of adoption.
Despite the aforementioned obvious benefits, the fact still remains that over 80% of Sri Lankans are yet to switch to Mobile banking.
Would you join the rest of the mobile community in this shift? For more information on our mobile banking product please visit http://www.hsenidmobile.com/
