A new report released today by management consultancy Arthur D. Little entitled “Banking on the Go” has identified investment in mobile banking as a promising revenue growing opportunity for the global financial services industry. Moving well beyond simple text-based balance updates, mobile banking 2.0 will capitalise on customers’ increasing mobile internet use to carry out complex transactions and introduce novel ways to reach customers through the mobile medium. New drivers Around the world, customers’ banking behavior is changing, with a significant decrease in branch use and a steep increase in the use of internet and telephone banking. In its new report, Arthur D. Little argues that mobile banking is reaching product maturity, and the traditional SMS-based mobile banking service is simply no longer enough to meet customers’ increasingly sophisticated telecommunications expectations. There are four specific areas driving the development of next generation mobile banking, all of which have scope to increase banks’ revenue, customer retention, and brand equity. These are:
- Convergence – no longer just industry jargon, convergence is now a reality. Today’s internet user is increasingly mobile (for example, 29% of Chinese internet users have no computer access, and access the web via mobile handsets)
- Advanced handset technology – the iPhone and other internet-ready mobile devices are driving integrated web- and telephone-based banking services, supported by specific mobile applications
- Security concerns – increased risk of fraud, theft, etc. further boost mobile banking with its incorporated personal security safeguards such as PIN-protected chips and operator-controlled functions
- Near field communications – technology that allows mobiles to communicate with other nearby devices could be revolutionary in offering online payments, providing authorization and processing services, and supporting a range of location-based services and marketing opportunities
- A decrease in call centre queries – a major cost savings for banks
- New revenue opportunities – from personalization- and location-based services
- A new tool for customer acquisition – attracting niche customer segments (i.e. technophiles)
- Improved brand image
Notes for EditorsAbout Arthur D. Little Arthur D. Little (ADL), founded in 1886, is a leading global management consulting firm that links strategy, innovation and technology to master complex business challenges while delivering sustainable results to our clients. Arthur D. Little has a collaborative client engagement style, exceptional people and a firm-wide commitment to quality and integrity. ADL is proud to serve many of the Fortune 100 companies globally in addition to many other leading firms and public sector organizations.
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Further InformationFurther information from:
Gerrit SeidelArthur D. Little
Tel: +49 89 38088-770
firstname.lastname@example.org Sue Glanville/Maita SoukupSay Communications
Tel: +44 (0)208 971 6423/6421