The Rise of Mobile Banking and Its Impact on Traditional Banking Services
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Abstract
The beginning and proliferation of mobile banking technology has transformed the landscape of banking services across the globe. The world of Banking & Finance is spearheading into the era where financial transactions are majorly conducted through the mobile/hand-held devices at figure tips, round the clock. This paper covers the rise of mobile banking and its profound impact on traditional banking services in Indian Context.
The study delves into the key drivers behind the surge in adoption of mobile banking transactions in India, examining technological advancements, changing consumer behaviour patterns, sequence of events occurred at economic level and its impact at a scale along with the evolving regulatory environment. The rise of mobile banking has redefined the way customers interact with financial institutions such as banks & other financial service provider.
Mobile applications enable users to perform various banking activity such as account management, fund transfers, bill payments, and investment management. This paradigm shift in the adoption of the online banking services has led to a fundamental transformation in customer expectations, prompting banks to reassess and adapt with the increasing consumer needs through their service offerings.
This shift to mobile banking also raises concerns about financial frauds, cybersecurity and data privacy, demanding a robust Fraud Risk Managements (FRM) systems as a measure to protect sensitive financial information and curve down the frauds.
The present study investigates, the implications for financial institutions in terms of cost structures, as the digitalization of banking services necessitates investments in technology infrastructure and cybersecurity. Traditional banks are compelled to strike a balance between maintaining physical branches for certain customer segments and investing in cutting-edge technology to stay competitive in the mobile banking landscape.
The study highlights, the rise of mobile banking signifies a shift in the financial services industry, where the convergence of technology, consumer preferences, regulatory dynamics and Covid-19 reshapes the banking landscape in the country.