Benefits of Mobile Banking
Mobile banking simply benefits banks by drastically cutting down the overall expenses of offering financial services to consumers. Moreover, this new way of doing banking gives people an easy access to their money as they no longer have to go the actual banks to make their transactions. Service providers also benefit from mobile banking as it regarded like the best way of achieving growth.
1. Reduces the operating costs
With mobile banking, banks do not need to set many costly customer service desks and call centers. A simple mobile platform like SMS messaging can be used to do repetitive actions like reminders concerning due payments or requests for balance. This can reduce the great burden placed on personnel resources and IT. Furthermore, through using secure messaging platforms, banks can lower the errors and expenses linked to the use of normal paper payments. Mobile banking even allows financial institutions to resolve problems proactively before they can even become issues.
2. Creates extra revenue
The use of SMS for charging for financial transactions helps create an extra an extra stream of revenue for a bank. Service fees and commissions on all mobile transfers and payments are another likely income stream. In addition, consumers can also buy services and products using the mobile banking services on their phones. For instance, electricity vouchers, prepaid airtime and coupons among other things can be bought using a mobile phone.
3. Lowers risk for banks
Mobile banking through SMS is cheap and lowers the monetary risk that is involved in doling out new bank initiatives. In fact, this is an effective and immediate way of banking and it allows real time monitoring that affords the chance of changing strategy where necessary.
Lastly, mobile banking systems can either be externally managed or integrated into the existing infrastructure so that no extra personnel are required.