Our Whitepaper on mobile banking solutions discusses the changing landscape of mbanking. It also discusses key challenges and drivers in mobile banking and how mobile banking apps can help banks optimize their resources and increase efficiency.

1. Mobility in Banking
Unwiring the bank

2. A report by Juniper Research predicts that mobile banking users across the globe will reach 530 million
by 2013, up from just over 300 million in 2011; making mobility a key strategic channel for the banks
encompassing the entire set of banking operations.
The fascinating success story of mobile banking solutions does make us inquisitive and tempts us to ask
and find answers to a few questions like- how the banking landscape has changed over the years? What’s
driving the growth of mobile banking? Where it’s heading? And, how smooth is the ride ahead? As the
next wave of banking mobility arrives, our cover story endeavours to get an overview of banking mobility
solutions and find answers to above questions.
mBanking or Mobile banking is a term used for performing banking
transactions such as account transactions, bill payments, fund transfers,
credit applications etc., on devices such as a mobile phone, Personal Digital
Assistant (PDA) or a Tablet.
The Changing Landscape…
Mobile Phone and Tablet usage are soaring. Access to mobile networks is now
available to 90% of the world population and 80% of the population living in
rural areas.
Mobile banking which started-off with banks offering services like balance inquiries, check-book requests
etc., via SMS and later with the browser through WAP and GPRS has, over the years, widened its scope,
engulfing a huge part of banking operations, both internally and externally. The initial changes have been
no less than dramatic. As mobility takes the centre stage in the technical infrastructure of banks, business
processes are being reengineered and new models explored. Mobile payment processing, location based
services, add-on services etc., have led to greater extension of mobile solutions enabling banks to provide
a consummate banking experience to the customers.
Today, banks not only use mobile devices and applications as a channel to offer services to customers but
also use it as a tool to connect within the organizations, empower their workforce and control its various
processes and assets. So, we not only see basic banking operations performed through mobile devices
and applications but also see increased use of mobility solutions within the organizations in complex
operations like asset management services, loan approval processes and database management.
Mobility in Banking : Unwiring the bank/ 2

3. User Bank
Anytime, anywhere Added medium to connect
access. and reach customers.
Easy and rich Fewer resources,
interface. cost reduction.
Unique experience, Higher customer
personalised services. satisfaction.
Highly Secured. Competitive edge.
Easy installation. Brand building.
The customer attitude towards mobile banking has also undergone a sea change. Far from being wary
of carrying out financial transactions on mobile, as was in the early days, people, owing to ubiquity and
convenience, today, have nicely warmed up to the concept of banking on their devices and are pretty
comfortable paying utility bills and transferring funds on the go.
Mobility in Banking : Unwiring the bank/ 3

4. The Drivers…
Several factors are at play behind the growth of mbanking or mobile banking. Smartphones and Tablets
have become ubiquitous. Consumers are welcoming banking services on their device. Bandwidth is
getting breezing faster. Mobile apps have gone powerful and much-secured to integrate with banking
processes and operations. While powerful game-changing drivers like faster ROI, higher productivity and
a direct and personal communication channel with the customer base has attracted banks to embrace
mobility, customers are buoyed-up by anywhere, anytime and quick services.
Major Concerns of Banking How mBank can address the
Industry challenges?
• Improve customer acquisition and • Reduces expenses for banking
retention. institutions and makes banking
• Revenue generation and cost accessible to remotest locations.
containment. • Anytime, anywhere access leading to
• To reach to the undeserved populace. higher customer satisfaction.
• To provide unique banking experience, • Fewer resources leading to cost
24x7 access. reduction.
• Customer privacy. • Facilitate staff member interactions and
• Best practices and decision support coordinate activities.
processes. • Place vital tools and current information
• Brand building through innovative in the hands of consumers and service
marketing channels. providers.
• Provides marketing and business
benefits.
Mobility in Banking : Unwiring the bank/ 4

5. The Big Gains…
The cost to serve comes at $0.56 per interaction for the IVR and $0.40 for
mobile.
-Yankee Group
Mercatus LLC Survey on mobile banking came up with some interesting results validating how mobilizing
the operations and services can boost customer acquisition, brand perception and sales.
60.00%
53.60%
Mobile Financial Services penetration
among US mobile phone users. 50.30%
50.00%
44.40%
40.00% 36.20%
27.30%
30.00%
19.60%
20.00%
10.80%
10.00% 6.70%
0.00%
08
09
10
11
12
13
14
15
20
20
20
20
20
20
20
20
Source : Mercatus LLC Survey
The report reveals that-
• Banks offering mobile financial services can increase new customer acquisition by as much as
60%.,
• Mobile financial service capabilities have more impact on a consumer’s decision to select a bank
than availability of online banking, access to ATMs, or nearby branches.
Mobility in Banking : Unwiring the bank/ 5

6. • Banks offering mobile financial services should anticipate as much as a 60% increase in sales lift.
• Customer acquisition, promotional offers including mobile financial services out-performed
those that did not include mobile financial services by nearly 30%.
• A decrease in cost of acquiring a new customer by as much as 20%.
The Possibilities…
Today, mobility for banking is not only a viable medium but also an enabler that can act as a force multiplier
for other channels. Mobile devices and apps offer considerable value to banks both from a B2E and a
B2C perspective. Mobile applications are swiftly replacing the mobile websites of banks by providing
better experience and secure transactions. Some banks have already introduced mechanisms that enable
interaction between the ATM and the mobile devices of the customer. Armed with a smartphone or
Tablet, a user can connect his device wirelessly to the ATM, authenticate and can make a withdrawal or
fund transfer through it without any debit or credit card. Within the organizations, powerful enterprise
solutions have facilitated performing a spectrum of services on mobile devices. Bank employees, today,
not only use mobile devices to connect and interact within the organization through mail, messenger etc.,
but also use it to access various company resources like Management Information System, Transaction
management and Sales Force Automation etc. Mobility solutions for banking are making processes leaner
and quicker not only with their own might but by also complementing other technologies.
»» Payments: Banks are rapidly leveraging mobility solutions to enable customers
to use their mobile devices to make payments at stores. Similarly, efforts are on,
to facilitate person-to-person payments where money can be transferred from one
person to another like PayPal.
»» Remote Data Capture: The facility to deposit documents like checks; pay order
etc., by simply scanning the check and sending the image to the bank rather than
depositing the physical form in the bank.
»» Location based Services: Many banks have already embraced location based
capabilities of mobility solutions to locate ATM’s, bank branches etc.
»» Call Recording: According to statutory regulations, banking organizations are
required to record calls to and from customers and banking mobility solutions can
facilitate in doing that.
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7. The Challenges…
The ride, however, is not so smooth. There are
multiple challenges facing the banks as they
move on to leverage mobility solutions. There is a
massive proliferation of devices differing in form,
Platform
Scalability functionalities and features. The challenge will be
to come-up with a solution that fits all. While the
world may have been stepping into 4th generation
of internet connectivity, still bandwidth latency
and coverage is an area of concern if mBanking has
Integration Key
& Challenges Customer to truly stand to its promise of anywhere, anytime
Deployment Experience banking. Security of banking transaction over the
Model
air is another complicated challenge which calls
for continuous intervention as the technology
Data evolves. Decision makers should also need to keep
Security an eye on the scalability and reliability of mobile
&
Fraud infrastructure as the usage grows and mobile
Detection devices become the major channel from yet-
another-channel of contact between customers
and the branch.
Mobile Banking will be one of the greatest success stories of the mobile commerce industry
over the next five years, as consumers observe the benefits of accessing banking services on
the move. As customers become comfortable with undertaking basic banking functions on
their mobiles, an increasing number will adopt transactional-based banking enabled by the
enhanced functionality afforded by smart devices, exposed to an all-immersive consumer
experience.
– Sonia Lalli, Juniper Research
The Future…
A report by Juniper Research predicts that mobile banking users across the globe will reach 530 million
by 2013, up from just over 300 million in 2011: making mobility a key strategic channel for the banks
encompassing the entire set of banking operations.
Mobility in Banking : Unwiring the bank/ 7

8. Near Field Communication ( NFC) is the next generation wireless communication technology
which enables real-time data exchange between compatible devices. The communication
between two NFC enabled devices takes place with a simple proximity wave or by touching the
two devices to each other. A user can make transactions just by touching his NFC enabled device
to a NFC credit card reader. All the transaction information then is securely stored in the smart
card chip integrated inside the device. NFC technology thus enables easy, fast, and secure way
of mobile payment.
In addition to a steady increase in the number of banking services on their mobile devices, the quality and
level of mobile experience will also be a detrimental factor in the growth of mobile banking. Merchants,
keen to maximize their customer base, would look for new, convenient ways for their customers to shop
and pay. Sample this: You are shopping. You carry all the items in the shopping-cart to the bill desk, get
the bill and put your hand in the pocket to take out your wallet…but, this time your m-wallet. Yes, as
smartphones get powered with NFC (Near Field Communications), mobile devices will turn into wallets
and cashless transaction will get a new meaning. As a result, banks have to think beyond conventional
possibilities when it comes to mobile banking. From being your bank’s branch to your wallet; the mobile
phone will do a lot in future. The trends points towards a future where everything will be real-time and
any-time and mobile devices will emerge as the major medium of consumption. Tapping onto the
opportunities available will help banking institutions derive enduring value from mobility solutions.
Our Recommendations…
• Embrace mobility: Mobile banking is here to stay. And offers tremendous value to both, banks
and customers. The opportunities are endless.
• Focus on consumer experience: Create a smooth, user-friendly and secure mobile banking
environment.
• Pick the right platform: Diversity in screen sizes, functionalities and operating systems
necessitates banks to adopt a multi-platform approach.
• Keep an eye on analytics: Monitor user behaviour. Customer intelligence will be the guide for
future.
• Lay down the groundwork for next generation of m-banking: Emerging technologies like
NFC, RFID etc., promises more opportunities. Be ready to seize them.
Mobility in Banking : Unwiring the bank/ 8

9. The Beginning…
The world of convenience banking on mobile phones and Tablets is pretty engaging. A powerful value
proposition! However, it is just the beginning. The swift pace of change in the mobile technology is
opening new opportunities, driving innovation and prompting banks around the world to ask- what else?
A big shift from- why go mobile, a few years back? The evolution has led many banks to not only see
mobility as an enabler towards greater customer access to their services but also as a catalyst for a larger
role in their lives. Mobile Banking is set to go beyond its current informational and transactional role. Banks
have a window of opportunity to seize the initiative. Procrastination is no longer a choice. Adoption is the
only way.
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