Mobile banking has made it possible for customers to access banking services anywhere, anytime. Mobile payment platforms like Hello Paisa and Fonepay are the two best examples of how banking channels are becoming handy. Over a dozen banks offer m-banking service, according to the Nepal Rastra Bank (NRB).
As they are comparatively cheaper tools for increasing service coverage areas, banks are competing hard to provide their services through channels like e-banking and m-banking.
Some of the features of mobile banking service are tracking of deposits and withdrawal, payment utility bills and transferring of funds, according to Ganesh Shrestha, CEO of Century Commercial Bank. “We are expecting a huge change in the banking sector in the next five years with additional features,” he said.
Services like Fonepay and Hello Paisa have made it possible inter-bank fund transfers, merchant payments, mobile top-ups and remittance receipt through mobile phones through mobile phones.
Bankers say mobile banking has been replacing e-banking to a greater extent as a similar service can be accessed through mobile banking. “The corporate sector is using e-banking, while individuals are shifting towards mobile banking,” said Umesh Singh Bhandari, assistant general manager—operations at Machhapuchhre Bank.
M-banking has also emerged as an important medium to take banking services to unbanked areas, where setting up branches is not that easy. Bhaskar Mani Gyawali, spokesperson for the Nepal Rastra bank (NRB), said services like e-banking and m-banking are being promoted for making available branchless banking service to unbanked areas. “The service is fast getting popular among urban customers, and we are hopeful it will be an effective tool for rural parts too,” he said.
Despite a huge potential, mobile banking also comes with problems. Lack of a trusted security system and infrastructure, delay in the implementation of digital signature, and the absence of an effective regulatory mechanism are some of the hindrances to making full use of mobile banking.
Rameshwor Khanal, former finance secretary, said the use of mobile for banking services has a huge potential. “Banks are still not that much confident about the security issue and the government too has failed ensuring security and provide infrastructure like data centre,” he said.
As far as security is concerned, banks are carrying out daily, weekly security audits as hackers try to find out loopholes to break into the system. The government record shows out of 26.49 million population, mobile service has reached to over 70 percent and internet service is available being used by 27 percent. Bankers said the number of people using m-banking service has been increasing gradually along with the growth in the number of mobile data and smartphone users.
In a bid to make mobile transactions secure and prepare a legal framework, telecom sector regulator—Nepal Telecommunications Authority (NTA)—is preparing to hold a study on m-commerce.
The central bank has already opened up to mobile -banking, allowing payments to be made by branchless agents of various banks through phones. Earlier, the NRB only authorised banks to consider Point-of-Sale machine transactions. An estimated 1.5 million plus Nepali bank customers have subscribed to mobile -banking.
http://www.ekantipur.com/2013/12/20/business/mobile-banking-reshaping-lives-through-connectivity/382641.html
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