Excerpt from BANK 2.0 – Chapter 6: Mobile Banking
Here is a snapshot globally of typical top-5 monthly requests or active transaction demand via ATM, Call Centre and Internet Banking. This is taken from a series of research projects, analytics, customer focus groups and surveys . But from market to market the trends are generally consistent with some local variations around specific bill payment types or similar. The data can easily be verified for your institution by checking for transaction usage data on the ATM, Call Centre and IVR transaction statistics, and total web analytics (probably through web trends or similar). The Top-5 for each channel are:
So above is actually the perfect base functionality for an iPhone or Android Application for ALL of your customers. The only one of these we can’t do is the cash withdrawal function, although mobile payments may make that increasingly redundant.
There are really two classifications of bank-enabled functionality embedded here in an application. The first classification is transactional, the second is content. Account Balance, Credit Card Balance, Recent Transactions, Loyalty program miles/points balance and Bill Payments content can be data that is streamed to a customer’s phone. In fact customers may even pay for this as a service. Functionality such as Transfers, initiating a Bill Payment or Credit Card Payment, need interaction through a transactional platform.
The clear proposition here is that the customer registers his application through the bank or through the app store and puts in an initial level of authentication into the application so that the streaming data can be delivered or refreshed each time the app fires up. If the account information shown is limited to the last four digits of the account number, there is hardly a risk of abuse. Even if the phone is lost, the streamed data is just informational with no content that is open to abuse through fraud, etc.
The additional transactions such as transfers could be confirmed with a secure login or authentication each time, just as with Internet Banking.