Mobile Banking-A Strategic Assessment

Abstract

The banking industry has enjoyed excellent success in the application of sophisticated information technologies. It has the capital resources to make significant investments in technology infrastructure, and over the years this investment has paid major dividends in reduced costs and extended service offerings. Information technologies have actually reshaped the nature and size of the financial industry sector. In developed economies this has most recently translated into Internet-based banking, including transactions for equities trading, account enquiry, transfers between accounts, bill presentment, bill payment, as well as transfers between people. Digital wireless technologies to a variety of terminal devices have now enabled wireless and mobile Internet access. Mobile banking seems a natural extension. This chapter examines the strategic considerations of mobile banking from technical, business, and regulatory perspectives. We conclude that there are very different challenges influencing the evolution of this application, depending on the particular economy and culture in which the opportunity is located.