The usage of smart phones in mobile banking research papers example

The usage of mobile has attracted animated debate on whether the entire banking industry should transform its major services to online system. Mobile banking connotes to the use of mobile phones in financial institution to execute various financial transaction. The emergence of smart phones has played a critical role in the adoption of mobile banking. The excess use of mobile banking by clients has ensnared banking industries by surprise (Fredrick & Lal, 2009). In the past, clients of various banks had to make a long queue in banks either to deposit cash/checks or to withdraw cash. Today, the banking technology has soared to a higher notch. A survey conducted by Mapa in May 2012 suggests that more than a third of banking operations are now online banking. On a similar note, J. P Morgan Chase and Co which commenced in 2009 reported that 13 million of customers use mobile phones in carrying out banking transaction. The mentioned technology has come to the rescue to both the banks and to the customers (Fredrick & Lal, 2009). The paper seeks to evaluate the cost and benefits of using smart phones in the mobile banking.
As mentioned above the new technology has come to great assistance of majority of users of mobile banking. In the past, the banking services stipulated that the clients of various banks had to make a long queue in the banks in order to deposit either cash/checks or to withdraw cash. This trend survived for a very long time. Things drastically changed immediately the smart phones find its way in the technological market. Reports indicate that majority of youths aging between 24 and 35 have migrated to the mobile banking. The mentioned technology has completely changed the outlook of various banking industries. Due to this, most of the clients are appreciating and embracing the new technology (King, 2013). Interesting to note is the fact that the banks which adopted the mentioned technology are branded as digital banks. On the other hand, the banks that are adamant to the new technology are branded as analogue banks.
The emergence of smart phones has placed banking industries in a tongue-tied position. The banking industries have faced several challenges to handle the mass of clients that uses the smart phones to carry out the banking transactions (King, 2013). Reportedly, a large number of Americans have been noted to be preferred and use smart phones to conduct various financial transactions. Due to this, most of the banks have invented various services that can be operated by mobile banking. For instance, First Financial bank in Texas has invented customer’s bill services. Through this, customers can pay their bill through the smart phones (Fredrick & Lal, 2009).
The use of smart phones as a way of conducting financial transaction has given birth to ample benefits to both the clients and the bank itself. To start with, the smart phones have saved the customers of banks from covering distance in order to make financial transactions. In addition, the clients have saved time and money. This means, now, the customers who possess smart phones do not need to make any journey. They can make transactions at their comfort zone. Secondly, the clients who use the smart phone now can manage, control and monitor their banks account without necessarily moving to the bank (King, 2013). Reportedly, before the invention of the discussed technology, clients had to rely on the bank to manage and control banks on their behalf. Thirdly, the mobile transaction have seen to be more efficient, effective and faster and compared to the offline services. Fourthly, smart phones are endowed with several applications this means the users are in the position to enjoy the applications. Lastly, the online banking makes it easier for the clients to quickly and easily access their bank account (Reynolds, 2010).
Besides, the cost of operating online banking is much cheaper to the banking industry. That is, less manpower is needed to operate the online service. This means, the banking industry, only need few employees to handle manual transaction. This means that the banking industries can now reduce the human labor leading to low cost of operation. Similarly, the cost of operating the online banking is very insignificant (Reynolds, 2010). On a similar note, the clients of various banks have registered a low cost in terms of online banking. For instance, check deposit through online banking only cost 50 cents.
Typically, mobile banking vie smart phone have been noted to have only need a meager experience for its operation. A point to note is that, to operate mobile banking, only simple induction is needed. Reportedly, majority of the smart phones users have argued that less experience is needed to operate smart phone to conduct financial transaction. Also, the clients have to login and insert the password before transacting in service. This means the mobile phone has a tight security (Reynolds, 2010).
There is a distinct comparison between online banking and offline banking. Online banking enable the client to conduct financial transactions via mobile phone while offline banking demands that a clients must visits the bank in order to execute the financial transactions. Due to this, majority of the clients have opted for mobile banking. In view of this, banks that have not opened its eye to the new technology may face mass exodus of its clients to other banks that have adopted itself to the discussed technology (Fredrick & Lal, 2009).


Fredrick, G., and Lal, R. (2009). Beginning Smart Phones Web Development. USA: Apress
King, B. (2013). Bank 3. 0: Why Banking Is No Longer Somewhere You Go, But Something You Do. Singapore: Marshall Cavendish Business.
Reynolds, G. (2010). Information Systems For Business Managers. USA: Cengage Learning.