Constraints to rapid widespread adoption of mobile banking channels
Ø Genuine concerns about security aspects of mobile banking have to be addressed.
Ø Different mobile operating systems and diversity of devices. Banks and telecom companies have to launch mobile apps. WAP sites that will run on all handsets and operating systems.
Ø Reluctance of customers to learn new technology and lack of incentives for customers to use a new channel. As most of the customers would be first time banking users, they would need to be made aware of the mobile banking platform and the best way to use this platform.
Ø Lack of pertinent initiatives from banks to move people to mobile banking channels
The difference in the two products of mobile banking i.e. (i) in retail banking and (ii) as a channel of financial inclusion is that in retail banking:
Ø The target group is the urban middle and high income individual customers
Ø There are no intermediaries. The customer is dealing directly with the bank. It is basically a self service where the customer is making payments himself, or requesting the bank for issue of a cheque book directly. All instructions are carried out by self.
Ø Account opening, cash in and cash out is not possible
Ø Security is by PIN
In mobile banking as a product of financial inclusion
Ø The target group is low income urban and rural individuals/customers
Ø The Business Correspondent is the intermediary
Ø Account opening, cash in and cash out is possible
Ø Self service is possible for some activities only, e.g. remittances and balance enquiry
Ø All other facilities like Demat etc are not possible
Ø Security is either biometric or PIN