Published By : 16 Oct 2015 | Published By : QYRESEARCH
Online banking is transforming the global banking industry at a rapid pace. In the past, consumers tend to avoid online banking due to the concerns such as security issues and technological complexity. However, the times have changed and consumers these days are increasingly using online banking to perform all of their transactions such as transferring money and paying bills.
In online banking, one trend that is quickly catching fire is that of mobile banking. With the growing base of consumers using mobile banking, banks are now offering advanced features to these users. Banks are also offering more personalized banking experience to their users in order to ensure customer retention. Trends such as mobile banking are shaping the dynamics of the global online banking market sector greatly. Take the example of Bank of America, the second largest bank in the United States that shut down many of its physical branches due to the rising number of consumers preferring online banking.
A new model of banking is emerging in the world. This new online banking model is helping firms to cut down costs massively. The growing sale of mobile phones in emerging markets will further fuel the mobile banking sector. Mobile phones are available in these markets for a low as US$15. Mobile banking is also being offered at increasingly low prices that even immigrants with low income are able to afford it. Furthermore, credit scoring algorithms are now being developed for this target group which is based on mobile phone top ups and also on social media information.
In the corporate sector, companies are offering mobile services and faster payments that can be charged along with advice on business which is based on the transactions data that banks have. Though mobile banking is undergoing dynamic changes and a attracting a huge number of users, it is still a work in progress but the direction of it is pretty clear for the basic dimensions of this emerging business model to take shape