Reasons To Use Mobile Phone Banking
Mobile Phone Banking
Know how to use Mobile phone banking? This is the guest post by banksifsccodes.com. Here you can get the reason to use mobile phone banking.
With the advent of fast paced technology and internet, banking services have taken a new dimension altogether. With this, has come the new rage for mobile banking, a non-cumbersome process by which customers can facilitate the services availed by the bank with great ease and comfort.
There are two processes by which one can register for mobile banking services. The first process involves the use of a hand set. The second process involves registration at the home branch of the bank itself, or at an ATM of the respective bank.
As more and more consumers switch to mobile banking services, financial institutions will be poised to improve their overall efficiency. For example, the costs associated with a mobile transaction are as much as ten times lower than a standard ATM transaction. Further, the cost of a mobile phone transaction can be as much as fifty times lower than an on-site branch transaction.
Clearly, this offers a unique opportunity to both increase efficiency, and to lower operating costs. Banks and credit unions that are able to move 20% to 30% of their standard transactions to mobile services will reduce customer dependency on local branches. In effect, poorly performing branches can be closed, and tellers can be reassigned to sales and customer advisory positions ultimately resulting in enhanced customer experience, improvement in overall efficiency, and reduced operating costs.
National and Regional utility
Banks offering a full range of mobile services will be able to expand their operational footprint. No longer anchored to a single geographical location, they will be able to expand their market and increase their customer base.
This also presents new opportunities to cross-sell and up-sell banking services to both existing customers, as well as to a larger pool of potential customers. True, the competition for new customers will become more vigorous, but the potential to expand into other markets and increase revenues is undeniable.
Improved Access to Products and Services
Mobile banking is appealing to customers, simply given the fact that it facilitates an on-the-go medium of banking. As mobile banking apps become more sophisticated, and more widely available, customers will have a greater opportunity to consider all of their financial options when making any purchase. It will be like having a virtual banker constantly on call.
This is a two way street, so it gives banks and credit unions the ability to engage with their customers in real time. When a good customer is considering a significant purchase, his or her financial institution will be able to offer complimentary services, such as financing or insurance, while the transaction is in progress.
Building New Relationships
Mobile banking presents a unique opportunity for banks and credit unions to build a new type of relationship with retailers and manufacturers. Mobile banking can become more than simply a convenient way for clients to make purchases.
After all, consumers use their mobile devices to research products and services before they spend their hard earned money. By partnering with the retail sector, banks can offer select incentives (discounts, coupons, etc.) to their customers before they reach the ultimate point of sale. A symbiotic relationship with the retail sector gives value to the customer, while generating a potential new revenue stream.
Leveraging Customer Analytics
Banks and credit unions are in a unique position when it comes to customer analytics as they have a more informed view of their clients’ spending habits. Information on where customers shop, what they purchase, and how much they routinely spend, is part and parcel of a client’s banking data. This opens up a new, and potentially significant, revenue stream.
There is a large, and continually growing, market for consumer intelligence. Customer analytics can be bundled and sold on to retailers and others who use the data to target certain markets. However, the privacy of the banking client must always remain paramount. Still, as mobile banking becomes the norm, this type of analytical data bundling can provide an alternative value stream for banking institutions.
Mobile banking is no longer the niche service that it was five years ago. As smartphones and other mobile devices become more sophisticated, more and more consumers will turn to mobile services as their primary method for banking. This is truly paving the way for a technological progressive society, world over.
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