*About 14% of mobile phone users in UK use the self-service channel i.e. mobile banking for quick, easy and simple transactions - a trend that doesn't seem to be doing too well. In view of the age old pattern, UK has always topped the self-services chart with Internet banking being widely used as compared to the U.S.A, Philippines, and China etc.
However, yet another research results released in 2010 by the mBlox Consumer Survey states that 37% of UK mobile users prefer mobile banking due to the 'anytime anywhere' aspect. These stats seem to be sharply dispersed with a note of hope for the mobile banking industry. Most of the customers agree that the daily balance notifications, fraud alerts, suspicious activity notifications and notifications for credit limits, low balance and overdraft encourage them to use this service.
Follow Global Trends... Not this time!
Everyone wants to be at par, everyone wants to be efficient and everyone wants to definitely save time. So the customary approach is for markets to follow global trends, including the UK. But UK service providers have decided to be different and adapt an altered model. This is where monopoly steps in i.e. a common shared services platform so to speak is offered to users. The strategy here is to 'Co-brand' this service through an already existing one. It is set up by subscriber institutions that provide a refined service.
Self-Service or Mono- Service...
Monilink- the dominated or standardized white labelled services offers this facility only to its users - you can access as long as you subscribe. Interestingly, the users can also transfer funds using their phones via the Monilink Backbone. Again, a service rendered only to the Monilink supports - whether it is the telecom users or the banks.
Lowered Expenses Equals Healthier Banks
One may wonder where the banks benefit from. Won't the entire mobile banking infrastructure be costly? It is definitely convenient for the customers but is it the same for the banks? Well, the banks find the tie-up even more cost-effective as Monilink charges based only on their transactions. The time and effort saved are a bonus. Now that is a better payback! It is no wonder then that most of the top UK banks have already registered.
Going a step further, Monilink is likely to strengthen its stance by introducing personal financial management tools which are comprehensive and user-friendly. More features like top-ups, mini-statements, card activation, over-seas transactions etc. only compel the users with efficient results.
Tentative Steps
With all the value added services, convenience and the enhancing attributes, this self-service yet needs a push. The mBlox Consumer Survey states two reasons for this vacillation. The security and the costs. Safety is the first concern users have with all that hard earned money. With the increase in the crime rate involving technology - it only gets easier for tech-savvy thieves. Hacking, text softwares and the list goes on. Yet another aspect is the cost involved. Not everyone can afford the simple transaction costs.
Keeping in mind the survey results, banks can help in bending the trend towards more usage with a systematic approach. Mobile banking would then be just the 'in' thing to do.
References:
*(Surveyed by MMA and Lightspeed Research during January, 2009)
* February Consumer Briefing Reports (US, France, Germany).
