Mobile Banking Means More Money for Operators
Mobile
banking is an emerging service in Latin America and is expected to catch
on in countries such as Chile, Brazil, and Argentina, where the economic
and political condition is relatively stable. Success in the mobile
banking market will help mobile operators shore up their average revenue
per user (ARPU) even when the mobile voice traffic slows down.
According to research firm Frost & Sullivan, in Latin American mobile
banking market, currently the main channel of connection is SMS and is
likely to remain so since mobile banking through messaging will be less
expensive for the user and will not require a sophisticated handset.
However, accessing mobile banking with a special WAP application will
represent a considerable increase in mobile data use. So carriers will
be most interested in working together with financial institutions to
promote this value added service, believes the research firm.
In another study, tech research firm In-Stat says while
more than two trillion mobile messages are being sent per day
globally as of the end of 2008, messaging is a big revenue source for
mobile operators.
"The
increasing usage of mobile devices over the last three years in Latin
America has created a more suitable market for advanced applications and
features such as mobile banking," says Frost & Sullivan consulting
analyst Andres Sciarrotta. "By 2008, most major banks in the region had
provided some kind of mobile banking service; however, the level of
adoption continues to be low."
The
slow uptake, says Frost & Sullivan, can mainly be attributed to mobile
subscribers' inadequate awareness of the benefits of mobile banking.
Mobile banking is often viewed as lacking in security and users labor
under the misconception that their personal information will be divulged
to third parties.
To
assuage these security concerns, banks offer special codes and passwords
for different transactions. They have also launched educational
marketing campaigns and hired more instructive personnel to let the
clients know that the service is completely safe and secure. Their
education programs are aimed at encouraging end users to learn and
understand the numerous benefits of mobile banking, informs the research
company.
"Familiarity with online banking capabilities promotes the adoption of
mobile banking services," notes Sciarrotta. "The similarity between both
services and the fact that mobile banking is an extension of online
banking increase the possibility of enlarging the subscriber base."
Banks
and mobile operators are hoping to rope in more subscribers by
partnering and improving mobile banking services. Some banks are
considering the provision of payment services since most banks currently
offer the option of recharging the mobile phone but not the possibility
of paying by cheque or credit card.
Mobile
operators must go the extra mile to attract not only end users to mobile
banking but also financial institutions, suggests Frost & Sullivan.
Bookmark this on Delicious
Seed
Newsvine
Your
Comments:
