innovation and corporate

Mobile Banking: A Popular Financial Practice

Mobile banking is a financial practice that has grown in popularity over the years, and its use is increasing by the thousands per year. Digital banking simply refers to the various processes of conducting financial transactions using a wireless mobile system. Mobile phones, tablets, and notebook computers are the most widely used devices (Shiklo, 2017).

Variety of Mobile Banking Operations

Financial institutions permit a wide range of mobile banking operations. There are various activities of varying degrees of difficulty. For instance, simple mobile banking activities include sending alerts and notices to customers on the current status of their accounts, while more complex activities may involve loan applications and payment of utility bills (Shiklo, 2017).

Mobile Banking Service Providers

Mobile banking is made possible by various service providers. For instance, SMS messaging and mobile web is facilitated by Mobile Virtual Network Operators such as T-Mobile and Verizon in the U.S., while financial institutions provide their customers with mobile applications to enhance efficiency.

Innovation in Mobile Banking

Was this innovation brought about through autonomous strategic behavior or induced strategic behavior?

With ever increasing technological innovations taking place globally, there was need by financial institutions to adapt to an innovative population. Thus, mobile banking was brought about through the induced strategic behavior as the main goal of the top innovators in the financial sector was to improve the efficiency of banking processes rather than seeking new business opportunities. The result is that several financial institutions have incorporated mobile banking into their system, which acts as an effective tool when performing financial transactions.

Success of Mobile Banking

Describe the current or potential success of this innovation

Mobile banking has mainly been appraised for its quick, efficient, and convenient features. Contrary to the traditional banking system, customers can perform a majority of their financial transactions via their mobile devices. The mobile banking frenzy has also penetrated many markets in both the developing and developed countries. For instance, Africa leads in mobile banking, with Nigeria, Kenya, and South Africa taking the lead within the continent. In the United States of America, 62 percent of the population depend on mobile banking as their primary mode of performing banking activities (Gonzalez Garcia, 2017). Evidently, mobile banking is an innovation that is more than necessary to customers in the financial sector.

Future Potential of Mobile Banking

Defend your position on the current or potential success of this innovation.

Mobile banking is a trend that the 21st century will continue to embrace for a long time. In fact, with the advent of mobile banking, the performance of the financial sector continues to increase. Gone are the days when long queues and lengthy bureaucratic procedures were part and parcel of every type of customer service. The number of mobile banking users is set to rise to 1.2 billion by the end of this year (Rana, 2017). Moreover, because technology is dynamic in its improvement, mobile banking will automatically follow suit. Several financial institutions are already conducting discussions on new mobile banking aspects such as challenger banks, voice payments, and blockchain. For instance, in 2016, 5 digital banks were set up as challenger banks in the UK to engage customers purely on a digital platform, rather than the conventional physical means of having them walk into a branch. Additionally, MasterCard and Samsung have incorporated a voice payment system whereby users can purchase groceries by merely using their voice (Rana, 2017). Overall, these and more services enabled by mobile banking are revolutionizing the service sector in general. Mobile banking maximizes customer satisfaction to the fullest, making it an A-rated service by its users. Thus, mobile banking provides a reference point for future innovators to attain the same level of customer satisfaction or higher levels.

References

Gonzalez-Garcia, Jamie. (2017). Online and mobile banking statistics. Creditcards.com. Retrieved from https://www.creditcards.com/credit-card-news/online-mobile-banking.php.

Rana, Saqib. (2017). Top 5 mobile banking trends to watch in 2018. Future of Everything. Retrieved from http://www.futureofeverything.io/2017/01/19/top-5-mobile-banking-trends-watch-2017/.

Shiklo, Boris. (2017). Mobile banking: Exploring trends for market leadership. Forbes. Retrieved from https://www.forbes.com/sites/forbestechcouncil/2017/05/16/mobile-banking-exploring-trends-for-market-leadership/#5342fdac6962.