Xuan Wang
Monash University
Gitanjali Bedi
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Innovative practices to reach and access customers easily by the banks have influenced the banks to adopt technology applications and platforms. The use of mobile banking for the transaction help access information easily. Mobile banking allows several users to transact at the same time which makes it more valuable than other means (Sharma and Sharma 2019). Using mobile banking reduces the congestion and enhances the efficiency of the transactions. In managing the use of mobile banking, financial institutions have provided customers with a medium that offers them better services.
Mobile banking is an innovative practice that involves the use of applications or websites for transactions. The customers can access the application of a specific bank on their gadgets and conduct a transaction without physically going to the branch. The internet-based platform requires the customers to register and provide all the relevant details that relate to the bank account to make the process secure and efficient (Zhang et al., 2018). Mobile banking allows transactions that fit the customer's preference and can be conducted at any place without restrictions on the locality. Using mobile banking also allows for the loan application by the customers.
Banks are the major financial institutions within the community which the majority of people rely on when conducting various transactions. The banks help drive the economy, creating opportunities and improve business transactions. Banks face several challenges when conducting transactions, especially in cases when customers are congested making it hard to handle physically (Shareef et al., 2018). For the management of the customer’s congestion and improvement of efficiency for banks, financial institutions should develop better online platform for operations. The problems influenced the financial institutions to adopt online banking to improve the efficiency according to the UN SDGs which makes the transaction easy.
From the interview, we learned that banks discovered that online transactions have made it easier for customers to conduct their daily business without traveling to the branch. The use of mobile banking greatly helps in reaching all customers including individuals that are not available physically (Giovanis et al., 2019). The use of mobile banking help in reaching many customers that is vital for a business transaction, thriving, and information gathering that can be in future when awarding loans to the consumers. Also, the use of mobile banking has proven to be effective especially during the pandemic period.
According to the information collected during the interview, the use of mobile banking has made it easy for financial institutions to gather data that can be used effectively when deciding on loan applications and future operations (Changchit et al., 2017). Online banking has made it easy for customers to transact without coming to the branch which lowers the congestion within the institutions. The mobile banking services operate throughout allowing the banks to offer services without physically attending to the customers. In essence, the banking system has benefited a lot from the mobile transaction.
The use of mobile banking has made it easier for financial institutions to provide loans to customers by collecting information within the platform. The loan provision has helped reduced poverty which is one of the UN SDGs because customers can access the capital for business venture despite the location (Zhang et al., 2018). Mobile banking helps in the collection of information that is essential for the business venture, especially within the community. The innovation also helps reduce the poverty level by offering financial advisory and information that can be used by the customers to help in managing and budgeting appropriately.
Also, the use of mobile banking has promoted the SDG by creating a partnership between the customers and banks for better goals. Mobile banking allows for the exchange of information between the institutions and customers intentionally to improve the association between the two. The ease of transaction established due to mobile banking gives the customers opportunity to make an appropriate decision and allows the institutions to determine the loan amount that every user can get from the banks (Giovanis et al., 2019). In essence, technological innovation is relevant for both parties to achieve specific goals.
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The banking sector has evolved over the years to fit into the current market environment according to customer preference. Application for a loan and other services within the banks is complex due to the manual processing and the time taken for completion of every task. Banks have faced challenges when processing various loans and other financial transactions which have been made easy by the use of the online platform. Online banking provides an opportunity for the transaction within a minimum period while following a short process for the purpose of satisfying the customer’s (Changchit et al., 2017). The bank's main target is provision of a platform that can be used by consumers to transact without physically visiting the bank branch.
