Mobile Banking Evolution 2

Rich Client is designed to provide a more secure solution which SMS Banking can't provide. It looks quite promising as this application is able to a better user experience by having a meaningful user interface and screen flow that is easy to understand.

Rich client or thick client or Midlet is called because it is basically a program that is installed in your mobile. It can be called a Midlet if this is a program that is developed for java environment and use in Java Enable Phone with MIDP (Mobile Information Device Provile), however rich client is a more universal terminology which basically now iPhone, Android phone comes with a different standard as well.

Always there is a price if you want to be more secured, in this case Customers have to install the rich client in its handset. This is a new challenge to the bank as application installation in mobile is not as easy as it looks. Different mobile will install the application in different directory, and it looks there is no definite guideline. While SMS is a straight forward services which will be available once you activate the number, rich clients need data plan in your number. Customers must be aware of this data plan in order for them to access the services through GPRS connection.

This creates various support issues either through the call centre and/or customer services at branch. Bank must assures that support for this cases. In recent years, application installation already can be given through OTA (Over the Air) mechanism and data plan installation is activated immediately during SIM card activation. These improvement will increase customer acceptance to use this Rich Client model for Mobile Banking.

Later we will discuss about the convergence of ebanking and mobile banking.

Mobile Banking Evolution 1

Customers and Banks relationship has never been so closed. Banks create various innovative solutions to make sure customers are constantly in contact with banks. This becomes possible as mobile technology also becoming more advance then before. The use of mobile to provide banking services has started few years ago with what is known as SMS (Short Messages Service) Banking. The main advantages of SMS Banking are that it has high compatability with all cariers as well as handset type and transaction cost is cheap. However the perception of SMS Banking is not safe also arise due to its free text sending through the handset itself. This also then limit SMS Banking transactions to smaller amounts including introducing what is known as One Time Password (OTP) as a mean to protect any financial transaction. SMS Banking system will require a random password that valid only once and known only by the customer.

Another challenge for SMS Banking is for some people, to type SMS in order to do banking is not always convenient as it looks. This SMS Banking then also evolves becoming MENU Based - SMS Banking through SIM Application Toolkit (STK). Through STK, banks can create value added services in the SIM itself for Banking Transaction, however the technology that is used to send message is SMS.

This approach mandates Banks to build partnership with telco carrier so that the menu is installed in every sim card. Customers who has been used a carrier that has not had a partnership with the bank then can't do much except has to use to type the sms format as required to do banking transactions.

Having the limitation of SMS Banking, IT vendors and bank come up with different approach to help customers able to do banking easier by building a rich client or thick client. This will be discussed in the next article : Mobile Banking Evolution 2

Banking Innovations Forum 2009 - Bartłomiej Kozakowski, Comarch

This presentation provide a good discussion on how banking should innovate on the changes of customer doing banking which due to its different lifestyle and demands. The new technology enable bank to provide various channel to serve the customers and Web 2.0 technology will create a new way of banking service its customers

Banking Innovations Forum 2009 - Bartłomiej Kozakowski, Comarch

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