Mobile App Banking – Empowering FIs
Along with the decline of smartphone prices and tariffs, we have seen continued growth in the popularity of all types of added value mobile services, which includes mobile banking. The advent of smartphone apps along with the sophistication of messaging has contributed to the growth of mobile commerce. Services that are available through a standard downloadable application include balance account statements, bill payment, funds transfer and an ATM locator. The applications aim to mimic the typical services that an eCommerce user would have. Banks have recognised the potential of the mobile channel for improved customer service but also cost savings, via app and text based banking. Banks are now witnessing tremendous uptake in mobile banking: for example RBS in the UK added over two million active mobile customers in the first 15 months, with 11% active account penetration for mobile app adoption and overall y-o-y growth of 100% in 2012. The Bank of Philippine Islands (BPI) recently announced that the bank anticipates double-digit growth on mobile-banking transactions this year, with some 50% of account holders opting for mobile banking. Consequently, mBanking is now accepted as a credible revenue source and a strategic imperative, empowering FIs to provide differentiated products and services and become once again ultra-competitive. One could argue that the development of smartphone apps has driven the recent accelerated growth in mBanking adoption rates, especially amongst the younger, digital generation.