Best practice for mobile banking is constantly evolving as financial institutions recognise its value and strive to make their mobile offerings versatile, agile, secure and engaging. The dynamic nature of banking while on the move, makes adoption of new mobile banking technology profitable, but complex in developing countries.
Latin America provides a prime example of this recent phenomenon, where mobile banking is growing rapidly, but not uniformly, throughout participating countries. Latin American security advisors estimate that nearly half of its citizens who potentially could use mobile applications shy away from them due to security concerns.
The country of Brazil provides an emerging snapshot of problematic issues in mobile banking applications, since they were implemented there, years before other countries in the region. Some concerns uncovered by experiences with Brazilian mobile banking efforts include:
Security issues are raised by the he number of banking transactions that occur over public Wi-Fi.
General corruption, whether widely occurring or not, leads payers to believe that payees may practice dishonesty at their end of the transaction.
Lack of mobile banking awareness and education leads consumers to underuse available technologies, creating bottlenecks at brick and mortar banks, where physical transactions take more time and money to complete.
- The legal environment in Latin America is still based on paper banking, creating the need for new banking legislation, supervision and oversight.
However, projections for adoption of mobile banking by Latin American populations looks promising, since their middle class is expanding. The middle class demographic in Latin America, like other countries, is increasingly digitised. Additionally, emerging markets are prime targets for banking implementation that offers less expensive financial solutions for unbanked and underbanked citizens.
The largest piece of the mobile banking pie will be served to those financial institutions that can provide innovative marketing and enhanced security, in addition to acquiring customer trust. Overcoming Latin American banking obstacles requires dedicated efforts to establish the market step-by-step.
Early Development of Business-to-Business Strategies
Businesses are likely to be more open to adopting new technologies in the early stages. Forming strong alliances with local business validates the market, as well as providing experience for newly established financial entities.
Diversion of Focus From the Existing Mobile Market to New Online Customer Acquisition
Marketing approaches should pinpoint the objective of converting offline behaviors into online ones. Awareness begins by creating incentives for current offline customers starting at the brick and mortar level.
Sales and Educational Efforts That Are Mindful of Cultural and Social Nuances
Learn what drives social and cultural behavior and respect local ideologies and class differences. Traditional business savvy is essential for successfully overcoming security concerns.