> Global banking: Foresights and insights (Video VI)
Global banking: Foresights and insights (Video VI)
The future of mobile banking
Mobile banking is the next big thing in the retail banking industry, many observers say. Over the next five to 10 years, expect it to become as routine as using ATMs. But successful customer experiences will require large technology investments, tricky collaborations with competitors, and a clear "own-the-customer" strategy.
Banks will also need to be open-minded — willing to learn marketing and security lessons drawn from trailblazing developing markets. But the rewards for banks could be great, too, given the extremely low transactions costs associated with mobile devices.
What does mobile banking mean for banks? (Part 1 of 18): What is mobile banking? Apart from using mobile devices, how does it differ from online banking with a computer or a tablet?
Tablets vs. smartphones (Part 2 of 18): Don't expect banks to choose a winner between a tablet and Smartphone. Each will fulfill different consumer needs and banks will need to develop both to compete effectively.
Assessing potential markets for mobile banking (Part 3 of 18): With 2.5 billion unbanked people in the world, and mobile phones spreading fast in countries with very low per-capita incomes, a huge untapped market is available.
Emerging markets blaze trails in mobile banking (Part 4 of 18): Some emerging markets, using Smartphones, are blazing new trails. Banks in developed markets can learn from these regions.
How will mobile banking drive innovation? (Part 5 of 18): The future is now: mobile phone scanners and payment processes are examples of mobile apps driving innovation today. More sophisticated products are in the pipeline.
Should banks expect cooperation – or competition – from retailers? (Part 6 of 18): Retailers offer banks customer access to potential customers. But they could also usurp the customer relationship unless managed properly.
The future is still cloudy for mobile banking (Part 7 of 18): Despite all the potential, it remains unclear just how quickly banks should move into mobile banking, given high upfront and ongoing technology costs.
Can banks make money in mobile banking? (Part 8 of 18): Don't expect a short-term impact on profits. Yet, differential pricing structures could lead customers to lower-cost mobile banking options and drive the volume needed for eventual profits.
Lessons from past banking innovation (Part 9 of 18): Banks' experiences with ATM services are instructive. What lessons can be learned from past innovation and what factors should be considered?
Measuring the mobile banking, personalized service split (Part 10 of 18): Customers will still demand personalized service in some areas – such as financial advising. But mobile devices will help them be better informed about products.
Security remains an issue for mobile banking (Part 11 of 18): Mobile banking is safer now than in the past but continued improvements must be made if banks want to increasingly drive business through mobile technology.
Banks compete for opportunities driven by customer data (Part 12 of 18): Expect banks to face stiff competition from telecom companies in turning customer information into new business opportunities.
Working with retailers offers opportunities – and risks (Part 13 of 18): Collaborating with potential competitors will likely be necessary for various mobile banking transactions. Banks must learn how to protect themselves and develop new strategies to be successful.
What are the chief risks in mobile banking? (Part 14 of 18): Banks must make investments in product delivery channels and segmentation to attract customers as well as manage costs and security associated with technology.
How can banks build customer trust in mobile banking? (Part 15 of 18): In emerging markets, security and reliability in mobile banking will help engender customer trust.. In the US, younger people and more products will lead the way.
Searching for the grand mobile banking strategy (Part 16 of 18): Banks should be deliberate and focused on the desired customer population and decide which products will serve them best.
Keeping an eye on mobile banking trends (Part 17 of 18): Watching the emerging markets for future innovative products is key as well as potential opportunities in payment systems and the remittance market.
Will mobile banking lead to a 'cashless' society? (Part 18 of 18): Some regions of the world are already checkless. The days of waving a mobile phone over a receptor are on the way.
The future of mobile banking (full video): Mobile banking is the next big thing in the retail banking industry, many observers say. Over the next five to 10 years, expect it to become as routine as using ATMs. But successful customer experiences will require large technology investments, tricky collaborations with competitors and a clear "own-the-customer" strategy.
Steve Sherretta, Knowledge@Wharton editor
Steve Ferguson Asia-Pacific Banking & Capital Markets Leader, EY
John Keller Americas Banking & Capital Markets Advisory Leader, EY
Keith Weigelt Professor of Management, The Wharton School
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.Test