Innovative Payments

MOBILE BANKING

Mobile banking, or m-banking, which enables mobile phone users to access basic financial services even when they are miles away from their nearest branch or home computer. In some parts of the world, such as the Philippines, Brazil and Africa, mobile banking is already flourishing. But in the United States, only about 10 percent of consumers -- about 1.7 million people -currently use their cell phones to conduct bank transactions.

Banks classify these services based on how information flows. A pull transaction is one in which a mobile phone user actively requests a service or information from the bank. A push transaction, on the other hand, is one in which the bank sends information based on a set of rules.

Push

Pull Funds transfer Bill payment Share trade Check order

Transaction

Inquiry

Minimum balance alert Credit/debit alert Bill payment alert

Account balance inquiry Account statement inquiry Check status inquiry Transaction history

Short Message Service (SMS)

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In some circles, mobile banking and SMS banking are synonymous. That’s because SMS banking uses text messaging -- the iconic activity of cell phone use. It works on virtually every cell phone, regardless of manufacturer, model or carrier. Sending text messages is relatively cost-effective. Text messages typically cost 10 to 15 cents each (to send or receive) when purchased individually, but can cost as little as one cent or less when part of a monthly calling plan. It accommodates two-way communication, allowing messages to be initiated by banks or by customers

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ADVANCED BANKING TECHNOLOGIES

Wireless Application Protocol (WAP) WAP is the technology architecture that makes accessing Internet pages possible from a mobile phone. Because it includes the concepts of browsers, servers, URLs and gateways. This is an attractive feature to many banks, who also appreciate the fact that customers don’t have to download any proprietary...