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BANKING TECHNOLOGY | Roxanne Uy, Singapore
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Mobile banking to give cash a run for its money

And who knows, cheques may even become obsolete someday; find out what CIMB's Iswaraan Suppiah and HSBC's John Laurens have to say about mobile banking.

ABF: How will mobile platforms affect banking in the coming years?

CIMB: Iswaraan Suppiah, Head of Group Information and Operations Division

In the ASEAN market, disruptive banking models will emerge in multiple customer segments as a result of mobile phone penetration and technology advancements in mobile devices and networks. In countries like Indonesia with a large under-banked population and limited access to banking branches, banking has become feasible for the un/under-banked. 

The mobile phone is likely to give cash a run for its money and perhaps even make a dent in cheque usage by emerging as a convenient person-to-person payment mode. Tech savvy consumers are already expecting to carry banking capabilities in their pockets. This is a far more intelligent, and context-specific form of banking where customers will increasingly expect banks to tell them how to get to the nearest branch or ATM; remind them when their bills are due and offer them the flexibility to choose the source of funds to pay by the touch of a screen; show them the best deals for a product they wish to purchase in their chosen vicinity; and offer them instant credit arrangements on-the-go.

Banks will have to work harder to understand their customers and foster loyalty through targeted value propositions for each segment, because intermediaries will make competing banking propositions available to consumers more easily on both mobile and internet devices.

HSBC: John Laurens, Head of Global Payments and Cash Management, Asia Pacific

Mobile platforms - whether smart phone or tablet – are leading to a significant increase in transaction volumes. The mobile environment has developed into a fast-evolving, innovative space where providers of new services compete intensely; which is creating significant advances for online users as well as a myriad of new conduits for clients to access banking services. This is particularly noticeable in further compression of the distribution chain as more commerce moves onto the internet, and applications give direct access to banking infrastructure providing immediate settlements. The associated delivery of invoices that electronically capture settlement information will lead to greater efficiency for corporates in the reconciliation of receivables, the shortening of DSOs and the ability to increase sales.

Banks will need to build transaction processing capacity, as well as servicing models, that deliver a higher volume of transactions that need processing. Banks will also need to support a higher degree of customers’ expectations for instant, flawless execution that is associated particularly with mobile services.

The focus on ‘straight through processing’ from origination of transactions to their settlement will continue to determine how banks configure their technology platforms. The linkage to ‘open standards’ will be important to ensure that the extended clearing infrastructure can operate seamlessly.
 

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