FOR Marketing Perspective --- Tuesday -- MAY 4<\/p>\n
bank is now in your hand<\/p>\n
Burhanuddin Abe
\nContributor
\nJakarta<\/p>\n
One afternoon a garment wholesaler at the Tanah Abang market,
\nHaji Hasan, received an order worth Rp 50 million (about
\nUS$5,875) from a trader in Makassar, South Sulawesi.<\/p>\n
As transactions in Tanah Abang are always in cash, the
\nMakassar businessman had to pay right then. Fortunately, both had
\naccess to mobile banking. So, within a matter of seconds the
\ntransaction was completed.<\/p>\n
Hasan received a message from his bank that the required
\namount of money had been transferred to his account, and to him,
\nthat was as good as hard cash or real money that he normally
\nreceives from his customers.<\/p>\n
Budiman, a marketing executive of a major company in Jakarta,
\nhas opted for some time now to conduct most of his financial
\ntransactions via mobile banking, such as paying his credit card,
\nwater and electricity bills, as well as sending money to his
\nparents in Denpasar, Bali. According to him, transactions through
\nhis cellular phone are far more flexible than a visit to a bank
\nand more convenient than using the auto-debit card. \"I feel I
\nfully control the entire transaction,\" he said.<\/p>\n
Today, mobile banking provides a wide range of services, which
\ncomprise more than account balance checks, transfers or bill
\npayment. In cooperation with cellular phone service providers,
\none can boost one's prepaid cellular account or that of another
\ncell phone owner.<\/p>\n
Some major banks also provide other financial services, such
\nas the purchase of mutual funds, bonds and even shares on the
\nstock market. Updating prices of shares and currency is also part
\nof the banks' mobile banking services. Undoubtedly, for extremely
\nbusy people, mobile banking is certainly a blessing. And, with
\nthe current rapid development in information and communications
\ntechnology, more innovations are in store to make their lives
\neasier. While a few years ago picture images were considered an
\nadvanced feature, today this is a standard feature of many
\naffordable cellular phones. Some people would go so far as to say
\nthat their banks are now \"in\" their cell phones. So to them,
\nfrequenting a bank, or even an Automated Teller Machine (ATM),
\nseems antiquated.<\/p>\n
Mobile banking is no longer a curiosity, nor is it a rarity,
\nas customers demand this service from their banks. In order to
\nstay competitive, banks have no choice but to incorporate mobile
\nbanking in their services. Mention any bank, from large- to
\nmedium-scale enterprises, and you will find mobile banking tops
\ntheir list of services.<\/p>\n
All the advanced features of mobile banking have been made
\npossible by technological enhancements within the country's
\ntelecommunications service providers. One mobile service
\nprovider, PT Exelcomindo (Pro-XL), for example, offers a
\ncomprehensive facility called \"Life In Hand\". Apart from mobile
\nbanking, Pro-XL's subscribers have easy access to chatting, the
\nlatest information on business and trends, and even to what is
\ngoing on in the celebrity world.<\/p>\n
For their mobile banking services, banks use either the Short
\nMessage Service (SMS) or SIM tool kits. SIM, which contains among
\nother things phone numbers, a message box and addresses, is the
\nchip card to activate a cell phone. Like in conventional
\nmarketing, banks' marketers also incorporate the related
\nmarketing strategy, like segmentation, targeting and positioning,
\nto serve customers effectively.<\/p>\n
This strategy makes it easier for banks to offer the right
\nproducts and services to each segment of customers. Besides a
\nfine-tuned targeting that results in higher sales or
\ntransactions, mobile banking has turned out to be a cost-
\neffective marketing tool in comparison to transactions at the
\nbanks' premises or even the ATMs. As both banks and their
\ncustomers now enjoy low-cost and convenient mobile banking, it is
\nnot surprising that an ad line used by a bank some time ago --
\n\"Like having a bank in your hand\" -- is now a reality.<\/p>\n
The popularity of mobile banking in many countries, including
\nhere, is phenomenal. To illustrate the surge in mobile banking,
\nwe could observe the total number of Bank Central Asia's (BCA)
\ntransactions from 2001 to 2003. In 2001, mobile banking
\ntransactions numbered 304,719. A spectacular increase in
\ntransactions caused that figure to jump to 2.2 million
\ntransactions in 2002, and its 2003 data shows 3.6 million
\ntransactions worth Rp 272.5 billion (about US $32 million). While
\nthis figure comprises only a small portion of the bank's entire
\ntransactions, one can easily imagine the mind-boggling total of
\nall mobile transactions from every bank in the country. All this
\nmeans that mobile banking has won the hearts of its extremely
\nbusy and somewhat technologically advanced customers.<\/p>\n
With the current increase rate of 50 percent annually for
\ncellular ownership, along with the estimated 20 million cell
\nphone owners in the country, in the not-too-distant future mobile
\nbanking constitutes huge potential for banks.<\/p>\n
Similar to comments made by other noted marketing experts in
\nthe country, marketing expert Rhenald Kasali said that for a
\ncompany, banks included, to emerge the winner, it would have to
\nkeep up with every advancement in all fields -- information and
\ncommunications technology as well.<\/p>\n
The hallmark of a good bank is hassle-free and cost-effective
\nservice. Thus, a customer who is not provided with the best that
\nthe banking industry offers, will surely use their cell phone to
\ndial another bank and switch allegiances.<\/p>",
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