Banking's evolution in the age of the internet

"As consumers turn to smartphones, tablets and computers for transactions, lenders have to rethink how their branches will meet the changing needs of both rich and ordinary customers In the UAE and many countries, online and mobile banking are finally coming into their own.

Some 15 per cent of UAE consumers said they used smartphones, tablets and computers for their daily banking transactions, a Bain & Company survey shows. Although mobile penetration and usage in the UAE are among the highest in the world, there remains significant room for growth. In the same survey, 40 per cent of respondents said online and mobile banking would become their preferred way to bank." Continue Reading

International Mobile Banking Updates - June 25

Ethiopia: Mobile Banking Game-Changer in Ethiopia
"New regulations will bring m-banking to Ethiopian consumers, but limits on the companies involved and how transactions must be managed could slow growth. On 1 January 2013, the National Bank of Ethiopia (NBE) issued a long-awaited directive that allows transaction-based mobile banking. This is a report by theafricareport.com. Four major players Commercial Bank of Ethiopia, M-BIRR, BelCash and Zemen Bank's z-Birr are expected to begin operations later this year, making Ethiopia one of those African countries adopting this technology."

UAE adopts measures to encourage wider use of mobile banking
"The central bank of the United Arab Emirates (UAE) has urged the two local telecom providers Etisalat and Du to slash fees for mobile phoning and SMS services in order to increase the usage of mobile banking, local news agency WAM reported Tuesday. The central bank issued a statement on mobile banking following a meeting hosted by central bank governor Sultan Al Suwaid on Monday."

Think like Amazon to beat superficial mobile banking: ANZ Bank CIO
"Banks will "need to operate more like Amazon" as they fight technology-driven loss of intimacy with services tailor-made to prevent customer churn, the CIO of one of the Asia-Pacific region's largest banks has advised. 'While mobile banking may improve [customer interaction] channels, they also carry the risk of allowing the customer relationship to become more remote if the transactions are purely transactional,' ANZ Bank CIO Anne Weatherston told FST Media's recent Future of Banking and Financial Services Technology conference in Melbourne, Australia."

Banks start charging money for SMS alerts, mobile banking
"In another example of cartelization among bankers, several banks have increased or started imposing charges for transaction alerts through SMS as well as for mobile banking. As usual, private lenders have taken the lead, which soon would be followed by nationalized banks. There is no free lunch says a popular adage. Our banks, having lured consumers with ‘free’ services, have now started charging for them or hiking already existing fees to fatten their bottomlines. So far this year, many banks have started charging for SMS alerts on transactions and hiked the annual fees on debit/credit cards. A few banks have even increased charges to deposit cash in your accounts. The list includes large banks such as ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Canara Bank. Here are some areas in which charges have been increased."

Kenyan banks face challenges with secure online transactions
"A weak legal regime, fraud and security weaknesses have stymied the growth and adoption of online banking in Kenya, according to industry insiders. International banks such as Standard Chartered and Barclays have ventured into online services but not as successfully as in other markets. Standard Chartered recently launched a paperless branch, where all transactions are virtual, while Barclays launched a banking app aimed at attracting more mobile and online users."

International Mobile Banking Updates - April 10

The mobile money space: Bdaily meets Monitise
"The mobile money sector has grown considerably over the last few years. Earlier this year, the UK Payments Council suggested that mobile payments could soon replace debit and credit cards. AIM-listed British firm, Monitise, have successfully built a reputation as worldwide providers of mobile banking, payments and commerce networks. Bdaily spoke with executive vice president, Lisa Stanton, about this exciting technology space."

Exploring the Mobile Banking Revolution in Tanzania
"In most developed economies, people can be forgiven for taking banks for granted. After all, an ATM machine is rarely more than a couple blocks away with easy access to funds. People can easily connect with their banks online to pay bills without ever handling cash, and loans and lines of credit are readily available. In much of the developing world, however, this infrastructure simply doesn’t exist. Thabiso Mochiko recently laid out the latest statistics on the issue at Business Day:"

Kenyans and poor Americans have this in common: mobile banking
"We’ve reported on how people in emerging markets residents are opening bank accounts and paying for things with their mobile phones, transforming business in those countries. But the US Federal Reserve would like you to know (pdf) that the changes aren’t all in other parts of the world. Poor people in the US are some of the most avid users of mobile banking and mobile payment systems. In fact, they’re likely to be the first adopters. And when you look at why, it turns out to be for similar reasons to why people in emerging markets have embraced mobile banking and payments: a lack of access to traditional banking."

Banks warned to keep up with developments in mobile banking or face losing customers
"ANZ, the country's biggest bank, is a laggard in the key growth area of mobile banking with ASB leading the way. This is a feature of research by Optimal Usability, a user research and design company. And Optimal Usability's CEO Kris Nygren told interest.co.nz in a Double Shot interview that another key finding of his company's research was that some customers may move their business to another bank for a better mobile banking experience."

StanChart launches mobile banking application and fifth EBU in UAE
"Standard Chartered has introduced its mobile banking application, Breeze, in the UAE, making it the first market in the region to offer the product. The lender also launched its fifth electronic banking unit (EBU), at new Dubai headquarters in Downtown Burj Khalifa, as part of its initiative in the digitalization of banking operations. Part of its global focus on socializing personal banking and extending customers' digital lifestyle into banking, the bank is considering launching various digital services and technologies in the market this year."

St George launches new smartphone banking services
"The St George Banking Group has released new mobile banking smartphone services with the launch of a live, account-balance Widget for Android phones and the ability to apply for a personal loan via iPhone or Android phone, with a response in just 60 seconds. St George says the new features are available for St.George, BankSA and Bank of Melbourne customers and follow on from a number of other “Australian-first” innovations from its mobile banking team."

International Mobile Banking Updates - April 3

HDFC launches mobile banking app on Windows Phone
"Windows Phone users in India with HDFC Bank accounts will no longer have to use the browser version of HDFC Bank. HDFC has just launched the mobile banking app for its Indian customers at the Windows Phone Store. The app will allow users to handle their accounts and basically do everything as with any netbanking application."

‘Misconceptions’ stall mobile banking uptake in UAE
"Despite its promise of convenience, mobile banking remains unpopular among many residents in the UAE due to a number of misconceptions, a recent survey shows. In a recent poll conducted by Rakbank that gathered 2,500 responses, over a third of respondents said they don’t find mobile banking to be a secure way to bank, citing that handsets can easily be compromised."

IBM, ING DIRECT Canada team up in mobile banking initiative
"IBM Canada Ltd. recently announced that it is working with ING Direct Canada to deliver financial services designed to improve the bank’s online customer experience including simplified account access across mobile devices and social media channels, voice recognition, and security. The software and services support ING DIRECT's Orange Snapshot initiative, which the two organizations say are 'designed to provide its clients greater control to manage their accounts within their increasingly mobile and social lifestyle.'”

ASB tops mobile banking survey
"ASB Bank has come out best in a survey of mobile banking services by privately owned testing company Optimal Usability. Optimal Usability, which employs 20 staff in Auckland and Wellington, advises companies on customer-facing technology and said it consulted for all the banks whose services it reviewed, with the exception of TSB."

Is it a phone, is it a bank?
"SWAHILI continues to creep into the language of global finance. M-PESA, a thriving money-transfer system run by Safaricom, a Kenyan mobile-phone operator, and named after the word for “cash”, has already entered the lexicon. Having persuaded millions of Kenyans to send cash through an SMS network, Safaricom is now trying to tempt them into a savings-and-loans service called M-Shwari, after the Swahili for “cool” or “calm”."

Ulster Bank mobile banking glitch now resolved
"Ulster Bank has said it has resolved a technical problem that affected customers trying to use mobile banking. The bank is part of the RBS group and the glitch appeared to be group-wide. In a statement, the bank said: "For a short period of time earlier today customers were unable to log into our mobile banking applications."

OFW remittances via online, mobile banking growing
"Majority of the overseas Filipino workers (OFW) send funds home via traditional money transfer services, like banks, but a growing trend is brewing: cash transfers via online transactions using mobile devices, kiosks and automated teller machines. There has been a growing demand for bank account-to-account or purely online transactions, noted Grant Lines, senior vice president for South Asia and Middle East and MoneyGram International."

NatWest glitch leaves customers locked out of mobile banking app
"NatWest has been hit by its third IT glitch in nine months when a fault left customers locked out of its mobile banking app for hours. The problem, which prevented people from logging in, also affected customers of Royal Bank of Scotland and Ulster Bank, and prompted some to take to Twitter to vent their anger. The three banks' mobile apps have well over two million active users, with at least 13m log-ins taking place each week."

International Mobile Banking Updates

Dallas Fed economist sees mobile banking as the way to reach the world’s unbanked 
"The fast growth of mobile technology means cell phones maybe the way to reach the unbanked in many parts of the world. That’s the premise of Janet Koech, an assistant economist at the Federal Reserve Bank of Dallas. 'In developing countries with a high mobile-phone penetration rate but a lack of robust financial services, the need for efficient payment methods has contributed to M-banking’s appeal,' Koech wrote in today’s issue of the Dallas Fed’s Economic Letter."

Mobile banking takes a hit on road to broader adoption
"Mobile banking is becoming increasingly popular with consumers and financial services firms alike. A recent UK survey conducted by Fujitsu of 50 CIOs from across the wholesale, investment and retail banking industry found that mobile is now seen as a top business priority. While online banking is commonplace and widely accepted by consumers, mobile banking still retains that touch of uncertainty that only time and education will gradually dispel."

Mexican Bank Expands Mobile Banking Service Following Trial
"Banorte, Mexico's third largest bank, and mobile payments service provider, Rêv Worldwide have announced the expansion of MiFon, a mobile-based financial services program piloted earlier this year, explicitly designed to foster financial inclusion among individuals with limited access to basic financial services."

Karur Vysya Bank looking to offer students fee-payment service via mobile
"Students can soon reduce the drudgery of standing in queues to pay their fees. They can instead use their mobile phone and do it from the comfort of their hostels or homes, a top official of Karur Vysya Bank said. The Tamil Nadu-based bank wants to tap universities and institutes with large student strength to offer mobile banking services. All that the students need is to have an account with the bank, says K.Venkataraman, Managing Director and Chief Executive Officer."

Citigroup Mobile Banking Users Reach 1.1 Million In Asia Pacific
"Citigroup Inc. (C) said Tuesday the number of its clients who use mobile devices to conduct their banking transactions in the Asia Pacific has reached 1.1 million."

Factors affecting mobile banking in SA
"The cost-to-income ratio is arguably one of the most important items in any bank’s annual reports. It shows how much of every rand earned is used to pay for the costs of running the business, and therefore, how efficient the bank is in the process of creating value for shareholders. One of areas that banks are focusing on in their quest to improve the ratio is to reduce customer reliance on branches and to encourage customers to start using cheaper self-service channels. The growth of cellphone ownership and Internet access in South Africa has provided banks with a window of hope to further reduce their costs and improve their cost-to-income ratios."

India: Can mobile phones take the place of banks?
"Getting poor people into the banking system -- which will allow them not only to save money, but also borrow funds to increase their earning power -- has been one of India's biggest challenges. But as a new article from Forbes India points out, an outfit called FINO, which was started by ICICI Bank in 2006, has been quietly making serious progress. When I wrote about mobile banking for Newsweek back in 2007, it was little more than a good idea, though a host of firms were already setting up "banking correspondents" in India's towns and villages. But since then, FINO has flown under the radar to make some pretty big strides, writes Forbes."

Mobile banking - mKesh
"A short video about the daily life of a research project fieldwork in Mobile Banking by NOVAFRICA - Centre for Business and Economic Development from the NOVA School of Business and Economics, Lisbon, Portugal."

Islamic banking industry has bright future in UAE
"The Islamic banking sector has a bright future in the UAE as it has been playing a major role in financing infrastructure projects, residential properties and corporate expansion, a top official of Noor Islamic Bank said. The Islamic lender, which was established with a vision to be recognised as the financial icon from Dubai, is developing its online and mobile banking products and services to expand its reach to the customers. The bank is all set to launch its latest product – A Bank in Your Hand — at Gitex Technology Week next week."

International Mobile Banking Updates - Dec 7

Cash-Lite: Mobile Money Expands In Nigeria
"Last week, following regulatory approval from the Central Bank of Nigeria (CBN), the United Bank of Africa (UBA) launched U-Mo, a mobile banking product that will be accessible to more than 80 million people across Nigeria. Now, almost half the country's population will be able to transfer and receive funds using their cellphone -- without having to have a traditional bank account with UBA."

HDFC Bank, Vodafone India launch mobile banking product for rural coverage
"It's a brief moment in the wintry sun for the handful of curious residents of Jhalsu village as a cavalcade of cars descends there on a quiet Saturday morning. Jhalsu is a dusty hamlet with a population of about 3,500 people and is about 35 km north of Jaipur in Rajasthan. The Deputy Governor of the Reserve Bank of India, Dr K.C.Chakrabarty, is here along with senior officials of HDFC Bank and Vodafone India, to have a look at their pilot project on financial inclusion through mobile banking and get a first hand impression from villagers."

HSBC Mobile Banking App Ranks No. 1 in UAE App Store
"HSBC's mobile banking solution received an outstanding vote of confidence from its customers as the app achieved a ranking of No. 1, in the Finance category, on the UAE Apple app store, within 48 hours of launch. The new mobile banking app was also rated amongst the Top 25 most popular "Free" apps.

HSBC UAE recently launched its new Mobile Banking solution in UAE, delivering the bank's Internet Banking platform customised for smartphone screens. HSBC customers, owning any Apple device, now have access to most of the same functions as desktop users via any GPRS, 3G and wireless (Wi-Fi) network. Using the new digital solution, customers in the UAE can view account details and transaction history, transfer funds between HSBC UAE accounts, access exclusive credit card offers in the UAE and worldwide, make credit card and bill payments, view exchange rates, and more."

Etisalat Afghanistan Launches "mHawala" Mobile Financial Services Powered by Telepin Software
"Telepin Software, a leading provider of mobile money transaction platforms, today announced that Etisalat Afghanistan has commercially launched mHawala, its new Mobile Money Services platform. Telepin's Cayman Transaction platform will be used by Etisalat Afghanistan for a full mobile financial services (MFS) offering that includes central bank cooperation, banking ecosystem participation, utility merchant involvement, and salary disbursement, which enables complete mobile banking capabilities and future cross-border money transfers."