Issues in Mobile Banking 1: Implementation Choices

As with any investment decision, the criteria for whether and how to establish a mobile banking business derive from the threats and opportunities of the environment and the strengths and weaknesses of the potential investor and/or operator. However, given that mobile banking is still a relatively new technology solution in the field of banking, the experience that has been gathered in early initiatives may be able to provide some generic guidelines as to the choices which need to be considered. This Briefing Note examines some of the key strategic issues for financial institutions considering implementing mobile banking based on the use of mobile phones. These are:

  • Market Potential – the target market segment needs to be quantified and socio economic data gathered in order to assess effective demand.
  • Substitute or Supplement – the mobile banking service may be a substitute or a supplement for existing banking services (or a substitute for informal financial services).
  • Operational Alliances – alternative relationships between banks and telecommunication companies.
  • Customer Hardware – options around the technology that can be used will depend on the level of accessibility of the required handsets to a broad enough market.
  • Systems – need to be appropriate to the banking environment being considered, e.g. where there is little or no electronic banking infrastructure then ‘stand alone’ systems are more appropriate.
  • Financial Model – how operational profitability is to be achieved.
  • Resource type
  • Author Jenny Hoffmann
  • Organisation
  • Year of Publication2006
  • Region
  • LanguageEnglish
  • Number of pages2 pp.
  • EditionMicroSave Briefing Note

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