Taking mobile banking to the next level: From transactions to experience

Most of the recent Mobile Banking and Payments solutions were being developed using the native application development approach. The front-end of these mobile applications were developed using the native platform of a specific device and the back-end was developed to route transactions to the bank’s core banking systems or switching systems.

Whereas, banks had challenges with customers at a different level. The subscriber characteristics, such as usage pattern and device level characteristics were never visible to the back-end middleware systems and without understanding these characteristics, mobile banking and payments solutions could never reach the next level.

Globally, across all industry verticals, understanding the end users and channeling their behavior patterns are considered as crucial factors for delivering optimal solutions. By doing so, organizations have achieved business sustenance along with increased direct, indirect revenue streams and reduced operational costs.

Meanwhile, Mobility platform technology majors offered what is termed Mobile Application Development Platform (MADP), that was able to collect and analyze the subscriber and device level data.

MADP platform provides the following two major benefits to mobile application developers across industry verticals:

  • Developer workbench that helps application developers create applications in Hybrid model (with HTML5 based development) optimally, with the flexibility to code once and use the same code for different target platforms. MADP offers built-in target platform libraries. This reduces the development turn-around times immensely and increases the velocity of feature development.
  • Smart backend platform stack that provides direct connectivity with the mobile device, thereby providing insights about device and user level characteristics.

While application vendors owned the business logic and MADP vendors provided the device-level accessibility and insights, it proves to be a killer combination.

The business logic was able to harvest the insights about device level characteristics, which in turn provided finer clarity about user movements and transaction patterns. This paved the way to insightfully cater to customers’ needs based on where, when, and what customers’ needed from a business logic standpoint. Use cases could range from location based services, geo-spatial based services, proximity based services, context aware rendering of apps, and deep analytics along with increased security of users’ mobile devices.

Disruption in Mobile Payments Landscape

Mobile payments industry in particular the Indian sub-continent is seeing a phenomenal disruption in terms of enabling real-time payments (Immediate Payment Service (IMPS)), Unified Payments Interface (UPI), Aadhaar ID (Social Security Number equivalent) based payments, and Bharat Interface for Money (BHIM) like initiatives on the mobile, taking electronic payments sector to an all new high. With credit, debit, and prepaid cards going virtual on mobile, financial and non-financial institutions along with Merchant ecosystems are pushing for Mobile modes of payments. It became important for mobile payments products’ vendors to quickly scale up and leverage MADP capabilities.

With technological advancements on mobiles, such as Near Field Communication (NFC), beacons and proximity based payments, it is imminent for mobile Payments providers to work with mobile platform technology providers.

Possibilities with FSS Mobile Pay on MADP are abundant, with examples like:

  • Device context based personalization
  • Upsell or cross sell opportunities
  • GPS based geolocation and real-time logs
  • Location analytics (real time correlation of events)
  • Geospatial enabled query results
  • Sentiment analysis (sentiment score or trend)
  • App user behavior measures
  • In-app feedback and crash analysis
  • App performance analysis (Device, OS version, etc.)
  • Shake device to report bugs
  • App vulnerabilities scanning with remediation assistance
  • App identity and authenticity verification (IPR protection)
  • OAuth-2.0 support for security
  • Offline app performance data store and sync

Don’t be surprised if tomorrow you might run across mobile banking user scenarios like: “It was rather a busy day in Market Street, San Francisco, where Jason the shutterbug jumped out of the BART rail and headed straight to the nearby mall to check out the latest DSLR cameras. All he had to do was take out his Mobile Phone and scan the price tag, and chill. Nobody knows Jason financially better than his mobile banking app. While Jason looked around, the app used its smart back-end to check if Jason is getting the best value for money as a loyal customer. Voila! App told Jason that the same DSLR is available at 20% lesser price just a few blocks away and it fits his budget, with an added EMI options, loyalty points, and cashbacks!! Doesn’t that sound ridiculously cool? Additionally, it makes the bank, the merchant, and most importantly Jason very happy”.