Banks are now sitting up and taking notice of mobile banking - with an abundance of analyst reports in its favour, banks can no longer afford to put off the adoption of this channel. According to research from TowerGroup and Accenture published in early February, the introduction of mobile banking services can achieve an ROI of up to 300 percent for retail banks. This, coupled with Juniper Research's statistic that 400 million people worldwide will be engaged in mobile banking by 2013, makes for a compelling case for banks to invest in mobile.

However, the question remains: how can banks make their mobile banking proposition more appealing to ensure long-term loyalty from valued customers? Basic features such as balance checking and simple transactions are fast becoming ubiquitous in retail banking. Banks need another differentiator and to be seen as truly adding value with their mobile offerings. They can only do this by providing innovative, interactive services to help engage the customer on a new level and drive up customer loyalty. Fully engaging with the mobile channel is therefore also likely to have a positive impact on the bank's bottom line: Accenture's findings support this hypothesis.

In order to maximise benefits for the bank, institutions need to up the ante when it comes to providing innovative services to customers. Examples of how banks can step up interaction with customers include using smartphones' geo-location functionality to push personalised offers and rewards to customers depending on their location, and using the mobile as a redemption device at selected retailers. This kind of service helps customers feel valued and reinforces the idea that the bank understands their needs. Optimising the mobile channel therefore stands to improve the customer experience and ultimately grow loyalty - and profitability.