blog.technavio.org
Open in
urlscan Pro
34.117.88.224
Public Scan
URL:
https://blog.technavio.org/blog/how-mobile-banking-is-affecting-the-banking-industry
Submission: On July 21 via api from US — Scanned from DE
Submission: On July 21 via api from US — Scanned from DE
Form analysis
3 forms found in the DOMGET https://blog.technavio.org/search/
<form role="search" method="get" id="searchform" class="searchform" action="https://blog.technavio.org/search/">
<div> <input type="text" value="" name="s" id="s" class="getsearchdata" placeholder="Search for blogs. Start with a keyword."> <button class="btn btn-lg but-search" type="submit" id="searchsubmit" value="Search"></button></div>
</form>
GET https://blog.technavio.org/search/
<form role="search" id="searchform" class="sf" action="https://blog.technavio.org/search/" method="GET"><input id="searchform-input" class="sf-input" type="text" name="s" placeholder="Search..."><span class="sf-submit-icon"></span><input
id="searchform-submit" class="sf-submit" type="submit" value=""></form>
POST https://www.technavio.com/newsletters
<form action="https://www.technavio.com/newsletters" method="post"> <input type="hidden" name="newsname" value=""> <input required="" type="email" name="newsemail" class="ftxtemail" placeholder="Enter your work email"><button type="submit">Sign
Up</button> <span class="fsub-msg"></span></form>
Text Content
* Back to Technavio * About Us * Subscription * FAQ * Contact Us Primary Menu * Industry Categories * Back * Industries List 1 * Back * Aerospace and Defense * Automotive * Chemicals and Materials * Consumer and Retail * Education * Industries List 2 * Back * Energy * Food and Beverage * Hardware and Semiconductor * Healthcare and Life Sciences * Heavy Industry * Industries List 3 * Back * ICT * Industrial Automation * Media & Entertainment * New Research Areas * Transportation and Logistics * Newsroom * Back to technavio * About Us * Blog * INSIGHTS * FAQ * Contact Us * Blog > How Mobile Banking is Affecting the Banking Industry HOW MOBILE BANKING IS AFFECTING THE BANKING INDUSTRY By Technavio Blog December 4, 2013 Share: In the past year, banks across the US have closed over 1,300 branches due to increasing number customers that use mobile banking for daily transactions. Like the US, many other countries are also seeing a decline in face-to-face banking, leading to bank closures across the globe. Mobile banking has been a revolutionary trend in the Banking and Payments industry. It has facilitated a convenient platform which has greatly influenced people’s financial behavior, especially the financially underserved sections. Many financial institutions have already shifted focus from customer-teller transaction to customer-mobile transaction. Below are just a few examples of current mobile banking platforms: * ABSA Mobile Banking * SunTrust Mobile Banking * HDFC Netbanking * Harris Online Banking * Key Bank Mobile * Union Mobile Banking * Arvest Mobile Banking * Regions Mobile Banking * TCF Mobile Banking * PayPal Mobile Worldwide, the Global Mobile Banking Market stands at 480 million subscribers as of 2012. Owing to the high penetration of mobile phones, the number of subscribers is expected to exceed 1 billion by 2016, fuelling market growth at a CAGR of 22.47 percent for the 2012-2016 period. The rapid adoption of mobile banking by consumers can be attributed to the following factors: PAUCITY OF TIME AND CONVENIENCE In this fast-paced world, people follow hectic work schedules and often do not get time to visit their banks during the stipulated banking hours. However, they still feel the need to closely monitor their finances to manage it better. This has led banks and financial institutions to develop new platforms such as online banking and mobile banking, eliminating any location or time constraints. HIGH MOBILE PENETRATION With the increasing usage of smartphones, people are now more comfortable and prefer using mobile phones for processing their transactions. Almost 70 percent of those who own a mobile phone now prefer conducting their banking transactions with it. USER-FRIENDLY INTERFACE This is also one of the crucial factors fuelling the rapid growth of smartphones and its usage for mobile banking. It is essential for customers to have a user-friendly and easy-to-understand process in order to conduct financial transactions by themselves. But the question still remains, what’s in it for banks? Banks and financial institutions are gradually recognizing mobile banking as a potential channel, or as a tool for differentiating themselves from their competitors. Apart from the other inherent advantages, mobile banking provides numerous advantages to banks and financial institutions, a few of which are listed below: LOWER INFRASTRUCTURE COSTS Traditionally, banks used to roll out new branches and employ new staff in these branches. This would increase their costs to a great extent. However, with the advent of technology, and the subsequent introduction of advanced mobile platforms capable of performing banking transactions, the pressure on infrastructure expansion has reduced to a great extent and has reduced the requirement for manpower, making the entire system very cost-effective. BETTER CUSTOMER INSIGHTS Mobile banking has proved to be a rich source for customer insights, as it records the transaction history of the customers. This enables banks to have a deep understanding of their customers’ needs and financial behavior, which helps them design and develop personalized products and feature applications. LARGER OUTREACH Mobile banking eliminates location and time constraints. This helps banks to focus and enhance their reach to the unbanked or under-banked, who refrain from visiting banks due to paucity of time. CUSTOMER LOYALTY Enhancing customer convenience is one of the major tools for attracting customer loyalty. The customer feels more empowered by having a check on their financial status. COMPETENCY Banks and financial institutions like JP Morgan Chase, La Caxia, M-Pesa and Monetise have always focused on designing products which are well suited for their customer segment, but adopting mobile banking as a new technological platform is being viewed as a competitive leverage. This factor helps service providers to better position themselves in the market. So what’s the verdict? Closing branch locations means that the banking industry is scaling back jobs and creating less access for customers that still prefer physical banking over mobile and internet banking. That being said, in the next few years alone, the number of mobile banking users is expected to reach over one billion, which means that banks need to focus on how they can interact and improve banking via mobile and online banking platforms in order to keep up with demand. If one thing is clear, it is that smartphones are here to stay. As more and more people become smartphone users, it won’t be long before they discover the wonderful world of mobile banking, in turn driving market growth for the years to come. Technavio / About Author More posts by Technavio TRENDING Top 10 Handbag Brands in India 2020 14 May 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 10 Shoe Companies in the World 2020 1 May 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 10 Condom Brands Leading the Global Condom Market 2020 16 Apr 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 10 Largest Beer Companies and Their Beer Brands in the Global Beer Market 2020 8 May 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 10 Cosmetics Companies in the World 2020 2 Apr 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 15 Sports Shoes Brands in the US Athletic Footwear Market 2019 21 Feb 2019 SHARE ON * LinkedIn * Twitter * Facebook Largest TV Manufacturers in the World by Market Share 2020 21 May 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 20 Packaging Companies Leading the Global Packaging Industry 2020 24 Apr 2020 SHARE ON * LinkedIn * Twitter * Facebook Top 20 Electric Motor Manufacturers in the World 2019 14 Jan 2019 SHARE ON * LinkedIn * Twitter * Facebook Top 18 Offshore Drilling Companies in the World 2019 2 Feb 2019 SHARE ON * LinkedIn * Twitter * Facebook TWEETS 17,000 reports available | Plans starting from just 5,000 USD | Get FREE trial>> × SHARE THIS BLOG * Linkedin * Twitter * Facebook OUR INDUSTRIES OF FOCUS * Communication Services * Consumer Discretionary * Consumer Staples * Energy * Financials * Health Care * Industrials * Information Technology * Materials * Utilities * Subscription * Conferences * Blog * Contact Us * Newsroom * Glossary * FAQ * Careers Sign up for offers & promotions Sign Up Connect with us * * * * * Privacy Notice * Terms of Use * Sales and Subscription * Copyright © 2007-2021 Infiniti Research Limited. All Rights Reserved.