Mobile Banking Evolution Triggered by Changing Consumer Behaviors and Information Technologies
Changing consumer behaviors and advancing internet technology trigger changes in banking and other financial services.
● The consumer culture of emphasizing personal experience and individual personality has been contributing to a growing demand for customized financial products and services.
● Advancement of Internet technology allowed consumers to get access to financial information on a real-time basis, and the new breed of social network services has emerged as a good source of financial advice they often rely on to make informed decisions.
A growing use of smart phones, along with more users recognizing their convenience, facilitates the rapid growth of local mobile banking service.
● With the widespread use of smart phones, the number of mobile banking service users in Korea soared to take up as much as 29% of all mobile phone users.
● In 2010, the transaction volume via mobile banking doubled from 2007, a rapid growth mostly led by male users in their 30s.
The global trend in mobile banking service is customization and differentiation with additional services.
● on the life cycle of mobile payment business, Korea, Japan, and Singapore are in the most advanced stage of mature market, while major advanced countries are in the growth stage, focusing on account balance check and wire transfer services.
● Now banks around the world are upgrading their mobile banking services to provide customized service to each client with an aim to deliver more satisfactory service and better experiences.
Banks need to develop more customized services and execute a channel integration strategy for higher customer satisfaction.
● Account balance check or wire transfer services on the move are not enough for banks to position themselves as differentiated service provider, and they need to come up with situational marketing plans and services.
- Offering PFM service and discount coupons customized to a client's lifestyle (age, account history, or location)
● Given that bank branches are now expected to play a new role with growth of online channels, banks are recommended to consider a new strategy to integrate branches and mobile channel with a multi-channel approach.
- Preventing conflicting marketing activities and delivering consistent services by integrating client and product information across all channels