With lifestyles becoming busier today, the benefits of banking-on-the- go cannot be overemphasized. This is why mobile banking is fast emerging as a favorite with consumers and in turn is evolving as an effective tool for customer retention, especially with regard to banking providers.

Mobile banking refers to a solution that takes banking beyond the internet to fully harness the potential of mobile phones that are growing exponentially. Today Mobile Banking services are known to span a number of areas such as:


Mobile banking is typically available in the following formats:

  • SMS messaging– This is where mobile banking emanated from. It allows the user to transfer funds or access account information through a text message.
  • Mobile web- This allows the user to check the status of their account, transfer funds, etc by logging into the account througha mobile web browser.
  • Applications developed for iPhone, Android or Blackberry devices that are one touch, user friendly and interactive have emerged as well.

The future of Mobile banking though extends beyond these formats.  Services such as remote deposit capture are already beginning to make an appearance, whereby users are allowed to scan cheques and forward them for clearing. Such services clearly take the convenience of mobile banking to a whole new level.

Classification of Mobile banking

Mobile banking can also be classified on following basis:

a) Push vs Pull Banking

As the name suggests, push mobile banking refers to the bank sending out information on a pre-agreed basis. Mobile alerts, in case of a transaction is a good example. Pull banking, on the other hand, is triggered by a customer by asking for a specific detail for example.

b) Transaction vs Enquiry based Banking

Access to a bank statement is an example of an enquiry based service while transfer of funds through your mobile device is a transaction based service.

Advantages of Mobile Banking

The advantages of using these mobile banking services include:

  • Anytime, anywhere access
  • Accurate and timely information even on the go
  • Precious saving of time instead of spending time in administrative jobs
  • No dependence on availability of an internet connection, as is the case with internet banking
  • Cost efficiency
  • Improved user experience
  • Secure transactions fortified by services such as receipt of SMS alerts on making transactions, thereby further reducing the risk of fraud

Advantages for banking service providers:

  • Lower operational costs
  • Meeting the demands of consumers in real time
  • Ensuring customer stickiness
  • Targeted marketing
  • Cross selling other banking products
  • Leveraging customer analytics

With smartphone penetration on the rise, mobile banking is clearly set to become the new norm. A situation that is clearly a win-win both for the customer in terms of convenience and for financial institutions in terms of growing their customer base and also exploring new revenue streams with robust customer analytics on their side.



Mahindra Comviva is the global leader of mobility solutions catering to The Business of Tomorrows. The company is a subsidiary of Tech Mahindra and a part of the $17.8 billion Mahindra Group. Its extensive...