BANKING TECHNOLOGY | Contributed Content, India
Diptiman Chakraborty

Mobile banking becomes a top priority in 2012


87 percent of the world population is already powered with a mobile phone with 25% users already browsing on the internet on their mobiles. KPMG surveys indicate that the Asian region has already shown a growth of 3x for mobile usage on retail.

The researchers also have the opinion that mobile banking would have the higher growth in the Asian region compared to European countries due to high proliferation of mobile phones in the region.

The Asian bankers have already identified mobile banking as a top priority channel in 2012 and one of the main drivers of business growth for the next generation of the banking as the cost of mobile banking is around 50% of ATM transaction and around 10% of Internet Banking.

In order to harness the technology the banks have already started exploring their technological requirements, applications to create a best suite to be distributed to their customers. The entities involved in this complete renaissance of banking should try to streamline their capabilities and know how to develop the m-banking channel to be customer facie.

Uniform practices and standardization of the processes and applications will be an integral part for providing customer convenience and education to customers of the new technology. The banks and MNOs should understand and play their role in the creation and distribution of the technology to all party of the region.

Mobile phones have shown an exponential acceptance and growth due to important factors like availability, easy to use, affordability (ranging from just $10 models) and adaptability (GSM/CDMA/3G and now 4G). The banks, solution providers and MNOs would have to take care that the m-Banking channel for the consumers must not only encompass these factors but also supplement them with high levels of security to ensure customer confidence.

Philippines, Sudan, Ghana and Latin America have already demonstrated the success stories in their region. Studies have forecast that the Asia Pacific region will account up to 65% of total worldwide users in 2012. According to KPMG, M-banking will have the biggest opportunities in China, India, Indonesia and the Philippines, while strong adoption rates will also occur in Thailand, Malaysia and Vietnam.

Thus it is pertinent for all eco-system around the m-banking to embrace the new opportunity and gear themselves with right technology, innovations and education methods so that they can realize the benefits of the change.

The views expressed in this column are the author's own and do not necessarily reflect this publication's view, and this article is not edited by Asian Banking & Finance. The author was not remunerated for this article.

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Diptiman Chakraborty

Diptiman Chakraborty

Diptiman Chakraborty is Manager at the National Payments Corporation of India.

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