The Impact of Mobile Banking on the Finance Profession in Banking Article

The Impact of Mobile Banking on the Finance Profession in Banking Environment - Article Example   However, there is also a group of stakeholders, including the staff that is concerned about the negative consequences of mobile banking. The crucial question is then how the finance work in the banking environment would be affected. The trending developments regarding mobile banking are well documented. According to SWIFT (2005), mobile banking is still considered as one of the pertinent topics in the finance industry, as well as for banking institutions. This has been exacerbated by the growing ubiquity of mobile phones across the global population. In a population of about 7 billion people, as many as 5 billion people will be in the possession of mobile phones. At the same time, out of all that population, only 2 billion people will be holding the bank accounts. Consumers are now increasingly using their mobile phones in making payments and bank their money. Mobile banking is described as a growing business, with users expected to increase to about 900 million while the transac tion value is expected to exceed 1 trillion dollars by 2015. Finance staff would also have to reap from the benefits that accompany the mobile banking operation. It is agreeable that mobile transfer is cheaper than teller transfer by about fifty times and ATM transfer by about ten times. Mobile banking comes with a lot of flexibility, both to customers and the firm itself. For instance, the service makes it easy for the bank to combine and sell other services and products that are offered in the bank, such as credit cards and loans, with relative ease. Mobile banking is the best way of realizing drastic growth because it is one way for banking institutions to remain competitive (Delloitte 2010). In the most obvious way, the finance staff would is some of the stakeholders to gain when the banks gain. Tiwari, Buse, and Hersatt (2006) acknowledge that increased competition as a result of technological development and globalization has exposed banks to a challenging environment. Mobile banking innovation creates the allowance for the banks to retain their place by introducing the innovative services that are aimed at retaining the customers, as well as increase the revenues. However, the business is still immature, considering that only a few initiatives have succeeded in attracting a significant base of users. In other words, the service is still marred with a lot of uncertainties.  Ã‚