MFP 036a.BN51-Issues in Mobile Banking 1 - Implementation Choice

This note examines some of the key strategic issues for financial institutions considering implementing mobile banking. It suggests the aspiring MFIs to assess the market potential and devise entry strategies according to the vision of the organisation. The note also mentions that mobile banking can be a supplement or substitute to the existing product or services, depending upon the goals of operators either for reducing transaction costs or attracting new customers or for revenue. The note also suggests forging strategic operational alliances, if need be (and in between telecom and finance companies). It further advises the MFIs wishing to enter into this market to develop compatible hardware and appropriate software in addition to financial modelling for providing these kinds of services.