Mobile Banking refers to provision and availability of banking and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information. Mobile banking is known by various other names. Through mobile banking, one can balance checks, complete his account transactions, make payments on time etc. via a mobile device such as a mobile phone. Most customers use mobile banking through SMS or the mobile internet. Some financial institutions take up another method to provide mobile banking to their customers. They make customers download special software on their mobile phones which acts as client for the mobile banking services.
Mobile banking is growing at a very fast pace and will soon become the primary channel for banks to connect with their customers. While the top banks have the financial and technical resources to make moves in the mobile channel, most mid-tier and small banks lack the innovation and funds needed to explore this front. Many of the largest banks have already launched mobile banking services, which are catching on with customers and generating positive business results. The past few months have brought a flurry of mobile banking announcements from mobile banking vendors who are responding to growing demand from their customers and the recognition of their own powerful position in the mobile banking vendor ecosystem.
Mobile banking technology vendors have a big role to play in helping mid-tier and small institutions take advantage of this emerging channel. Due to the increasing interest in mobile banking software, banks should deploy mobile banking software with confidence that their mobile banking vendors will provide the key to start the engine of mobile banking. Recent mobile banking announcements from technology giants represent the beginning of an evolutionary strategy with regard to integrating mobile banking more deeply into the banking infrastructure. As mobile banking software and payments evolve throughout the year, the associated mobile banking vendor ecosystem will change drastically. Mobile banking has reached a level of maturity that warrants action in the eyes of the mobile banking vendors.
Mobile banking is important to mobile banking vendors from the perspectives of both existing customers and new deals. The customers are eager to try out and use mobile banking capabilities, in large part because the top banks have made competitive inroads into the smaller banks' geographic markets. Pure-play mobile banking vendors have a hard time penetrating these smaller institutions because core banking vendors play the role of technology gatekeeper. It is quite possible that the core banking vendors will emerge as key players in the vendor ecosystem for mobile banking. In technology innovation, core banking vendors may not be trendsetters, but they are pacesetters. Because of their familiarity with banks' core operations, these vendors excel at seeing through the hype regarding new mobile banking software for banks and waiting to act until the market has matured to the point when innovation and profitability converge.
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Article Source: ArticlesBase.com - Mobile banking, the future of banking