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Advantages of Mobile Banking

The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers. For example an average teller or phone transaction costs about $2.36 each, whereas an electronic transaction costs only about $0.10 each. Additionally, this new channel gives the bank ability to cross-sell up-sell their other complex banking products and services such as vehicle loans, credit cards etc.

For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Also service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones.

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The benefits of mobile

Submitted by Stephen on Mon, 2009-10-12 04:52.
The benefits of mobile banking are demonstrable and immediate. Clickatell outlines below the primary benefits offered by SMS mobile banking for both customers and financial companies. Reduce your operating costs: Eliminate the need for costly call centres and customer service help desks by going mobile. Using a mobile platform such as SMS text messaging for simple and repetitive tasks such as reminders about payments due or balance requests can reduce the burden on IT and personnel resources. pool filters Using secure and integrated messaging platforms means that you can reduce the costs and errors associated with paper-based payments. One of Clickatell's clients on the African continent, SatCom Networks Africa Ltd operates out of Tanzania and uses SMS notifications to alert banks to problems before they become customer complaints. This includes alerting banks to ATM events such as low stock of funds or paper, power failures, pool chemicals attempts at frauds etc. This innovative service allows banks to proactively resolve problems before they become issues. Reduce risk for your institution: SMS mobile banking is cost-effective which lowers the financial risk involved in rolling out new banking initiatives. It is immediate and effective and with two-way messaging enabled, campaigns can be monitored in real-time affording the opportunity to change strategy if need be. Clickatell's SMS mobile banking solutions can be integrated into existing infrastructure or externally managed so no additional personnel are needed. SMS mobile banking reduces the potential for fraud immediately as fraud and account transaction notifications are sent in real-time empowering customers to take action immediately. Give customers peace of mind around the accuracy and security of their financial transactions through SMS authentication PIN codes and transaction text notifications. Generate additional revenue: Use premium-rated SMS to charge for banking transactions and create an additional revenue stream for your financial institution. Commissions and service fees on mobile payments and transfers are another potential income stream. pool party Customers can also purchase goods and services via a mobile banking platform and the mobile number database can be used for cross-selling purposes - particularly time and event related options. This could include insurance packages, discounted holiday packages and premium banking services. Prepaid airtime, electricity vouchers, coupons etc can all be purchased via mobile phone.
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