BFSI VISION | Mobility


Girish VS

Managing Editor, BFSI Vision

Time to Kill Mobile Banking

The banking industry is caught in a time warp. On one side, the customer is evolving rapidly – a combination of technology and global experiences means the customer has moved on. Welcome to customer 3.0. On the other side we have the banking industry struggling with technology 2.0. Clearly a mismatch. This is nowhere as evident as in mobile banking. The customer is comfortable with the smart phone. She has a number of apps to make life interesting. She expects a contextual application, with a clean design and simple interface. And they get the same old website – on a mobile device. Banking industry should not confuse mobile as an extension of the internet. Banks need to embrace a whole new paradigm – that of viewing the services from the point of the customer – not from the point of its own interpretation of the customer's needs. Mobile banking has to be designed from the ground up – by designing a bank for the mobile platform – not simply as providing access to traditional banking services through the mobile phone.

There are a few interesting mobile applications that have been developed by banks across the world. At the top of the list is Mobile Cheque Truncation (In the US they call it Mobile Remote Deposit Capture). The customer can take a photo of the cheque and send it to the bank for clearing – a simple and effective way to embrace CTS. Another innovation could be a Mobile Virtual Assistant – extending something like the Siri as a banking app – the user can use voice commands to interact with the bank. A third innovation could be cardless ATM. (The ICICI Bank product is a variation of the IMPS by NCPI) Paydiant Inc. of the US has created an interesting app that allows the customer to withdraw money from the ATM without a card. According to the product literature, the customer opens the mobile banking app, selects cardless cash access, designates an amount and an account, then goes to an ATM, taps that same selection and a bar code appears on the screen. The member scans the code with his or her smartphone, it's validated, and the ATM dispenses the requested cash.

Sadly we do not harness the full potential of the mobile platform – think of the personalization that is possible with a mobile platform – we have the power to create a digital market of one. But then who has heard of it?

As we say – it is time to kill mobile banking as it is today.