Summary of the Issue
The issue identified to be discussed in the article is mobile banking and its impact on the banking industry in different regions of the world. The article first identifies the conditions in the banking industry presently, and this outlines the position of mobile banking in the world. The responsibility of a bank is to identify the different needs of the customers that they have. This will help in the identification of customer preferences in line with the introduction of online banking. “The bank is charged with the responsibility of teaching the customers on the importance and need to adopt the mobile banking techniques in the industry.” The advantages should be properly understood by the customers and the possible shortcomings with the technology of mobile banking. The bank should also be in a position to identify the possible opportunities and threats of the technique in their own bank (Danielle 2014).
Mobile banking involves the carrying out of financial transactions by customers or financial institutions through a mobile device like a phone or tablet. This may involve the payment of goods through the mobile systems, buying of goods or services at the point of sale or remotely without the need to be present at the buying place. This mode of conducting business is highly efficient as much as several challenges that the customers have the right to be aware of. These payments can also be done through the SMS services by the customers to the retailers (Danielle 2014). The status of the mobile banking services has increased through the introduction of the Google Android Operating Systems in most phones. The supply and easy access to the androids have boosted the mobile banking within most of the societies in the world today. In other terms, this is also referred to as mobile commerce.
According to the article the situation of the mobile banking services in most banks is not well defined and developed, and the consumers are very skeptical about adopting the mobile banking systems. It recognizes a number of companies that have promoted mobile banking and has taken it to greater heights due to the provision of the platform to access mobile banking. The Amazon Company is one of the companies in the world today that has fully adopted the mobile banking systems and is providing platforms for accessing the technique. For mobile banking to be successful, the banks must collect information about the customers so that they are sure of what the customer wants and expects from the institution. The customers need to get what they want from the banks, and this is what the mobile banking technique provides to the customers (Danielle 2014).
The banks need to collect data on the consumer preferences in order to understand what they are expected to provide to them. Mobile banking requires the collection of data so that one is certain of what to execute in the plans in the banking industry. Google, Wal-Mart and Amazon are pushing banks to move into the forefront of adopting mobile banking systems through reaching and keeping customers. Studies provide information that the age that uses the mobile banking most is youths of 35 years and below. This is due to the anxiety of the young generation to explore, and the financial institutions are tasked with the responsibility to convince the other generations to adopt mobile banking for its highly efficient (Danielle 2014).
Other Issues Identified
Other issues in the article are linked to the banking system but a little bit off it. The article covers on the situations in banks with reference of what to offer to the people. There is need to identify if the customers prefer credit cards or loans so that they are served with respect to their demands. The data collected on different clients in the industry will help in improving efficiencies in the services offered to the customers. The profiles of customers are very important to the banks in that this would help in the identification of choices of different clients. The data improves success in the banking industry. Though the data collected on the customers is not to be solely used in attending to the customers but to be supplemented with other issues and factors in the banking industry. This incorporation will help in realizing sustainable growth in the industry as well keeping and improving customer relationships in the industry (Danielle 2014).
The Impact of Mobile Banking on National Bank of Abu Dhabi (NBAD)
Mobile banking has improved the communication programs in NBAD since the bank can easily reach its customers. Some of the benefits of the mobile banking in the industry have improved the efficiency of the banks and the service delivery to the clients. Even though positive impacts are evident, the negative impacts of mobile banking are inevitable by the National Bank of Abu Dhabi, just like any other bank in the industry (Mishra and Singh Bisht 2013).
Opportunities of Mobile Banking in NBAD
One of the most outstanding opportunities that the mobile banking technique provides is the ability to frequently visit your bank. To the customers this is a great opportunity as you can access your bank account anywhere anytime. This may mean more bank transactions and this gives the bank the opportunity to expand as more revenues are received to the NBAD. The increasing mobile banking operations in the country of UAE, has been linked to reduced costs of accessing the banks since all the customers who are remotely located are able to use the banking services at the same cost, and this increases profits to the National Bank of Abu Dhabi (Kettell 2011).
With mobile banking, the bank is at the point of extending its operations and creating new institutions around the world. Mobile banking increases infrastructural development in the bank as more customers are acquired, and this implies a need for more efficient institutions around the world. More personnel will be employed by the NBAD, and this is likely to improve the services, attract more customers and increase revenues to the bank (Mishra and Singh Bisht 2013).
Threats of Mobile Banking to NBAD
Since UAE is a developing country, most of the customers using the banking services from NBAD are skeptical in using the mobile banking system. They think that their money is not secure. Another threat is that some of the customers are likely to stop using the mobile banking platform in the banks but resort to the telecommunication mobile banking. This will cause losses to the NBAD is a while (Deb 2014). The bank is also likely to spend on creating awareness and advertising on the mobile banking. Not every person or even 30% of the total population can afford mobile banking platforms, and this is the lying challenge with the NBAD (International Business Publications, USA 2012).
The NBAD should invest more on the creation of awareness on the importance and need to use mobile banking by the people. The bank should also help in supplying of android and mobile gadgets to the customers and teach them on how to use the device in mobile banking (Kettell 2011).