Don’t be surprised if pretty soon you see smartphones replacing credit cards in the cashier line as the mobile banking space is becoming exceedingly popular.
Mobile banking, which allows for consumer purchases to be made through smartphones, is on its way to becoming the "new norm,” and one company ready to ride this wave is Tyfone, a company that offers next generation mobile banking services to both online and offline customers.
Recently, TMCnet sat down with Tyfone’s Director of Business Development, Mark Miyamoto, to talk about the rise of mobile banking, and Miyamoto confirmed what we already thought – “the mobile banking industry has changed dramatically in the last few years,” he said.
TMCnet: How has the mobile banking industry changed over the last few years?
Miyamoto: Acceptance: The general population has accepted the mobile banking channel as the normal way of banking. From both a banker's perspective and from an FI's perspective, mobile banking is a must. Mobile banking is not an "if" question, but rather "when," as it is mandatory to stay competitive.
Demographics and Devices: Users are of all ages, which has been due to the advancement and proliferation of affordable, yet powerful, smartphones.
Features: Until recently, mobile banking has been a simple extension of online banking. Now, technology has evolved to enable more advanced features than that of a mobile version of online banking. Mobile banking is creating its own identity with features such as mobile remote deposit capture, customized alerts, and secure commerce transactions.
TMCnet: What is driving the increase of mobile banking services?
Miyamoto: Mobile banking services are increasing due a combination of general "acceptance" of the new technology, convenient features, smarter/faster devices and a weak economy. Consumers, now more than ever, need to be aware of their balances. Technology is advancing and always will. The "vision" of mobile banking has evolved into what has said to be the next trillion dollar industry, mobile payments.
Tyfone considers itself as a mobile financial services company rather than a mobile banking service provider. In 2004, Tyfone started developing technology and applying for patents with the mobile payments vision and associated security in mind.
TMCnet: How has Tyfone kept up with this boom?
Miyamoto: Tyfone's mobile banking solutions offer all the new convenient features such as mRDC, customized alerts, account aggregation, etc... However, Tyfone is well situated as mobile banking evolves into more than mobile banking. Tyfone offers a very strategic road map of mobile financial services that can be added in a modular fashion.
Tyfone offers a world-class mobile banking service that can seamlessly evolve into an NFC digital wallet with enhanced levels of security. Both the FI and mobile banker benefit from the modular approach. Consumers are offered additional features between the banking and wallet, which is not available anywhere today as a unified solution. This approach reduces research efforts by the FI, but more importantly offers the FI invaluable branding. Now the FI can offer more features with a single sign-on (to both banking and wallet) and also have its brand associated with every Point of Sale transactions (just like a credit card) instead of having an unbranded disparate wallet.
TMCnet: Where do you see the industry heading in another 10 years?
Miyamoto: There are many moving parts in the financial ecosystem that have to be established before the "digital wallet" truly proliferates. In preparation, this evolution is happening everywhere whether through routing networks or Point of Sale readers. It will take anywhere between two to four years before the digital wallet reaches a tipping point and becomes mainstream. From there, mobile financial services will be offering an entirely new set of features like revolving around commerce – loyalty and rewards programs based on location and preferences, layered security, and personal financial management.
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Edited by Rich Steeves