A few clicks on his mobile phone are all it takes this customer, who is miles away from the nearest banking facility, to transfer funds from his savings to checking account to cover an overdraft. And how does he get to know of this overdraft? A text message from his bank, of course! So says an ad for a bank, which is doing the rounds. Welcome to the world of mobile banking, where all things banking are, quite literally, at your fingertips. Mobile banking has today transcended geographical barriers, with easy, remote access to a whole array of financial services.
- One major challenge is low literacy rates , awareness among the masses and getting consumers used to the idea of paying for things with their phones
- Poor merchant adoption of mobile banking/payment technologies. The need for significant investment for IT infrastructure upgrades can deter retail outlets from adopting these technologies.
- A relatively small customer base with access to technology that supports NFC payment. Google Wallet’s website lists just six phones that are NFC compatible and Apple iPhone 5 is not one of them!
- Persistent security concerns despite successful implementation. Misuse of these technologies to cheat unsuspecting customers is not uncommon.