Promoting Mobile Bank Interoperability

The smart mobile banking solutions of the future should recognize the potential of the mobile platform represents and anticipate the societal expectation of enhanced consumer engagement and increased satisfaction through more interactive conversation. In addition to the obvious benefits to the business owner who can view client activity in real time, a mobile banking application offers customers an increased level of flexibility and convenience that go beyond the current SMS communication methods. A mobile banking application is designed to provide a client with a mobile experience that goes beyond basic messaging and video conferencing. It offers clients a rich variety of functional capabilities including: integration with social media networks, instant and archived online access, appointment reminders, mobile device management and mobile content management. A mobile banking application also enables a business to take advantage of the mobility provided by a personal digital assistant (PDA). Additionally, a mobile banking application can also make it easier for staff to manage their mobile communications and track their business activity.

The increasing versatility provided by smart phones is expected to bring about dramatic changes in how businesses communicate and engage their clients. The increased frequency of mobile transactions, coupled with the mobility provided by handheld devices, opens up new markets for companies. Mobile banking solutions are expected to impact all industries, as the industry becomes increasingly dependent on wireless communication to facilitate client access and facilitate decision making. Traditional cellphone banking is being challenged by the rise of mobile messaging and the ease with which consumers are moving from their typical hand held devices to their cellular handsets. The traditional cellphone banking process involves a series of business activities including: receiving application approvals; delivering proposed business deals; and approving or denying loan proposals. As mobile banking continues to rise in popularity, new options are likely to be deployed that will cause the traditional cellphone banking process to be challenged even further.

One of the primary challenges to businesses and consumers will face is how to effectively use mobile banking solutions to enhance workflow, while reducing the workload associated with traditional wire transfers. Many mobile payment apps are available to banks that will allow customers to make payments from their mobile devices. A mobile payment system is designed to give banks a more accessible and interactive way to process payments while providing their clients with an easier and convenient way to pay their bills. When using an internet-based mobile banking solution, customers can simply scan their debit or credit card and submit the transaction history. After approval, funds will be transferred directly to the designated account or the designated bank account.

In addition to new mobile payment methods, banks are also working to reduce other limitations and inconsistencies that come from implementing this technology. For example, because internet-based systems often require users to enter their payment information multiple times, it is often required that multiple people enter these data into the system. This process often causes a delay in the transfer of funds. While some banks have developed solutions that allow multiple people to enter and save information in a single transaction, others still persist in requiring each person to submit the transaction individually. As a result, it can be nearly impossible for some customers to complete their online transactions.

Because of this problem, some banks have developed new technologies that help customers fill out the transactions needed. In recent months, a number of mobile banking companies have released products known as mobile banking applications. These applications simplify the selection, processing, and submission of payments through various web services. Many of the new services offered by banks are designed to improve the lack of usability associated with the old method of completing transactions. For example, mobile banking companies have introduced no-toward checkouts that eliminate the need for the customer to present a physical card.

Banks face additional challenges associated with the deployment of their mobile solutions. One challenge involves the use of cell phones as a source of communication between the customer and the bank. While some consumers enjoy the convenience of being able to send text messages directly to a branch manager, others have become wary of the dangers associated with sending confidential personal or financial information through such a medium. In addition, the use of cell phones has increased the frequency of calls between branch offices, which can be problematic when it comes to privacy considerations. In addition, the number of potential customers using cell phones in the location of a branch office increases the amount of time that transactions are conducted. Limited mobile bandwidth and lower resolution capabilities often result in slow, sometimes unsuccessful, transaction completion.

Mobile banking solutions have also created a new set of challenges for banks outside of the United States. In developing countries, mobile technology is often more limited than is available in developed nations. Developed countries typically have access to multiple mobile phone service providers who provide both pay-as-you-go and contract plans that can be used by a broad range of customers. Mobile technology companies have developed applications that allow individuals to use their mobile phones to make money from anywhere they have access to a cell phone signal. For example, a bank in India may allow its customers to make purchases using their debit cards without charging them in cash or debit card transactions.

Although the availability of mobile technology has significantly reduced costs and created new business opportunities, security concerns and lack of standards for mobile banking services still exist. Companies that provide mobile banking services must work to build a standard for mobile interoperability. This will reduce the risk of security breaches and promote mobile banking interoperability throughout the industry. By working toward universal mobile interoperability, mobile technology companies can create a uniform way for mobile devices to interact with one another.