Customer centric execution key consideration to successful mobile banking propositions
Convenience of use and a product offering that gels with customer lifestyle are some of the crucial considerations for those pursuing mobile banking. July 14, 2011 | Manob GuptaMobile banking offers new opportunities for banks looking to diversify from traditional branch and online channels. In particular, developing nations such as India and South Africa have witnessed a great uptake in mobile banking, as it offers huge potential for tapping into the unbanked population and providing access to basic banking services. Absa Bank, South Africa has scaled up its mobile banking product and service offering to cater to targeted customer segments including entry level or affluent customers. Absa’s mobile banking journey started in 2000, but was initially marred by major setbacks, such as a disconnect between its customers and its mobile proposition. Between 2005 and 2007, the bank went through a remarkable transformation, increasing its presence in the mobile banking space through partnerships with various non-bank parties to offer a host of value-added services such as using aggregators to extend its reach to content providers to provide music, ringtones, and other downloads. Another notable initiative was the prepaid electricity market, in which Absa enabled customers to settle their affairs with electricity distributors conveniently over the mobile phone. At the same time, Absa Bank managed to establish a deep working relationship with Vodacom, South Africa’s largest mobile network operator, to incorporate preloaded banking applications on SIM cards. In addition, the bank was able to minimise the capital costs associated with setting up the mobile network largely through leveraging on the existing internet network infrastructure. Despite considerable initiatives undertaken in the early stages, the bank faced challenges in the diffusion and uptake of mobile banking services, mostly relating to security, trust and customer acceptance. Absa Bank’s experience concludes that customers are less price sensitive if they expect potential (hidden) cost savings or realise increased convenience of the mobile channel ove... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Banks We Like, Mobile Banking, Retail Bankingbankswelike,Mobile banking,retail, Banks We Like,Mobile Banking,Retail Banking, Keywords:Absa Bank, Price Sensitivity, Value Added Services, Customer Centricity Absa Bank, Price sensitivity, Value added services, Customer centricity
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