19 January 2018

44975

Retired Member

3,254Posts 11,910,032Views 3,540Comments

Will mobile banking take over internet banking in APAC?

17 August 2015  |  3327 views  |  0

Based on several discussions with many banks I had in the last 11 months in the region I found that more and more banks are interested mainly in mobile banking solutions and online banking solutions only come after that.

It is not a surprise after all as in the region the mobile penetration is booming similarly to the global trend.

Out of 7.219 billion people 3.038 billion (42 %) is an active internet user and 3.679 billion (51 %) is a mobile user globally.

In APAC the mobile penetration has significantly increased: 365 million additional mobile connections (+ 11.2 % since Jan 2014). This number is enormous, but it is still just the tip of the iceberg.

One of the reasons why banks are focusing more on mobile in terms of channels is that they started to realize that this can be a very powerful link between them and their customers. Expand and enable financial services in mobile banking applications can also help the bank better understand their customers which can help deliver better products and services hence increasing customer engagement and satisfaction.

Countries like Myanmar, Papua New Guinea and East Timor have lot of potential as the mobile penetration in these countries is still low, but the growth rate is very promising in terms of new mobile connections. These are just the countries with the highest growth rate from mobile subscriptions perspective, but based on a recent study from “We are social” almost every country in APAC has unexploited opportunities.

Mobile banking leaders:

A report from the Australian market, which is based on the survey of consultancy firm Bain & Company, shows that in Australia mobile banking channel is more common than online banking, while interaction with online banking dropped from 42 % to 35 %. Since local banks invested heavily in digital technology they should not only be less affected by the changing environment, but also can quickly adopt and strengthen their market positions.

Below the numbers per countries in the region:

a member-uploaded image TagsMobile & onlineRetail banking

Comments: (2)

A Finextra member
A Finextra member | 18 August, 2015, 06:28

The direction technology is taking is mobility and digital driven by internet technology, if I may say so. It does not stand to reason to have differentiation like internet banking, mobile baking, digital commerce so on and so forth. Internet banking is reduced to a jargon and does not have a business case any more.

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 18 August, 2015, 07:37

The direction technology is taking is mobility and digital driven by internet technology, if I may say so. It does not stand to reason to have differentiation like internet banking, mobile banking, digital commerce so on and so forth. Internet banking is reduced to a jargon and does not have a business case any more. It is all and only mobility. The access points may be several, mobile phones, tablets, laptops or desktops etc.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Retired's profile

job title
location
member since 2014
Summary profile See full profile »

Retired's expertise

Member since 2009
3254 posts3,540 comments
What Retired reads

Who's commenting on Retired's posts

Ketharaman Swaminathan
Dharmesh Mistry
David Andrzejek
Ralf Ohlhausen
Tom Hay
Nicola Cowburn
Michael Wright
Charmaine Oak