The chart above shows that messaging-based and browser-based solutions are often favoured by banks. The messaging-based solutions are, however, used exclusively in the field of Mobile Financial Information and other non-transaction services. Four banks (Postbank, Sparda Bank Hamburg, HASPA and comdirect) offered the most extensive network by offering all
Mediums of Mobile Banking
0%
10%
20%
30%
40%
50%
60%
70%
80%
SMS Browser Client
n = 12;
multiple answers
three mediums to their customers. Citibank, Credit Suisse and UBS offered a combination of SMS and browser-based solutions. One bank planning to launch mobile services within the next year intends to use a combination of SMS and client-based solutions.
None of the banks offered mobile services solely on the basis of SMS;
2 institutions (Sparkassen Broker and 1822direkt) made exclusive use of browser-based solutions whereas Sparkasse KölnBonn, one of the leading pioneers in client-based solutions, remained loyal to its own client-product.
Reasons for low acceptance of SMS for transaction services SMS has established itself as an important medium for conducting transac-tion-based Mobile Accounting services in countries such as India and the Philippines, as described in section 7.2. It has however failed to generate such response in Germany and other western countries. Banks were asked about their perception on this issue.
Almost all banks regarded SMS as vulnerable to security risks. Some of the participants mentioned uncomfortable usage for conducting transactions (e.g. learning & typing commands). One participant said this was a ques-tion of differing mentality as people in Germany found online services more comfortable. Importantly, one participant pointed to dependencies that may arise for banks vis-à-vis powerful network carriers and would thus lessen banks’ bargaining power.
Chances for SIM Toolkit
The SIM Toolkit, a hybrid form between messaging- and client-based solu-tions described in section 7.3.1, is thought to simplify SMS solusolu-tions and reduce security risks. Survey participants were asked about their opinion on this product.
3 of the 12 participants with mobile services (25%) thought SIM Toolkit could be an interesting option, as it would be more comfortable than SMS and yet cheaper than other solutions. 4 participants (33%) had no opinion on this issue; others were sceptical. Some said SIM Toolkit, being a client programme, will have similar disadvantages (e.g. need to install and up-date). Apart from this user unfriendliness, it would entail similar risks vis-à-vis network carriers.
Prospects for client-based solutions
Participants with mobile services in portfolio were asked about their opin-ion on whether client-based solutopin-ions could increase customer acceptance of Mobile Banking, as browser-based solutions are often perceived by pro-spective users to be too expensive and SMS-based transactions are too complicated and risky. Opinions seem to be divided on this score:
6 of the 12 participants (50%) agreed with this notion. The reasons cited were: i) it is easier to learn and use; ii) offline preparation of transactions saves costs; iii) special stand-alone software provides better security. One participant also pointed out the possibility of broader functionality that can be programmed to cater to the specific needs of particular customer groups.
2 participants (17%) were sceptic. They accepted the argument of cheaper, offline services but saw a deeper problem in the update issues.
3 participants (33%) thought that client-based solutions lack customer response because they require more effort to learn how to use them. One of the participants said, as soon as affordable flat rates for UMTS are avail-able, costs would cease to play a role and client-solutions would lose their basic advantage as has happened in the field of Home Banking vs. Online Banking. Another participant said the need to install software would always act as a barrier for the customer.
One participant did not offer any comments on this issue.
Prospects for PDA Banking
An ever-increasing number of banks is offering mobile financial services via PDA; see section 7.1.3 for details. Banks were asked for their percep-tion on the future chances of this business concept. The opinion was di-vided equally on this front.
Half of the respondents looked positively at the phenomenon of PDA Banking. The argument cited most was that the target customer groups have a high penetration of PDAs that has a high usability and fewer short-comings (e.g. better display) than mobile phones. The other half did not think PDA Banking could succeed, the reason being low market penetration which in their opinion was not expected to increase significantly in future.
One participant warned of missing features and of intensified focus on par-ticular groups. Another participant foresaw technically better-equipped
mobile phones (e.g. smartphones) taking the front seat in future so that PDAs may eventually lose relevance altogether.
9.2.5 Objectives Pursued by Mobile Banking Offers
Banks offering mobile financial services were asked about the objectives that they might have been pursuing in offering Mobile Banking to their customers. Nine possible objectives, identified during literature review, were presented to the participants with a request to evaluate their possible influence, on a scale of 1 (very high influence) to 6 (no influence at all), on the decision of their bank to launch these services. Participants could of course name other objectives that might have played a role in their deci-sion. The table below shows average ratings in ascending order received by individual objectives; the nearer a rating is to 1, the higher the influence and vice versa.
No. Objective Average Rating
1 Fostering innovative image 1.67
2 Better customer relations management 1.92
3 Differentiation vis-à-vis rivals 2.75
4 Attracting new customers 3.17
5 Increase in the turn-over 3.58
6 Increased efficiency of the workflow 3.83
7 Cost reduction 4.00
8 Higher flexibility in business processes 4.00 9 Increased motivation of the workforce 4.33 Table 29: Average rating of objectives pursued by banks
The ratings are calculated on the basis of the responses by 12 participants either offering or planning to offer Mobile Banking. One participant cur-rently offering mobile financial services did not take part in the evaluation.
This participant did not attach any importance to Mobile Banking and hence followed no particular objectives except to provide an “alibi offer” to customers that proactively ask for it.
Two participants emphasised the importance of multi-channel approach.
The average ratings reveal that banks are principally motivated by “soft”
strategic reasons in their decision to offer mobile financial services and while determining their scope, than by “hard” business reasons.
It is not to deny that there might be individual banks with differing mo-tivations. In fact, there were few participants that evaluated objectives such as cost reduction and increase in the turnover with high priorities.
Target customer groups
Banks were asked about customer segments that they sought to target with their mobile services. Of 12 banks offering Mobile Banking, 11 responded to this question, another response was received from a bank set to launch mobile services. The bank with the “alibi offer” did not have any preferred customer group.
Banks were asked specifically about their opinion on students, the sala-ried class, top management, financially affluent sections of the society and customers with high affinity to technology. Banks were further encouraged to name their own target groups. The following chart describes the re-sponses to this question: