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Increasing Popularity of Mobile Banking in South Korea

Monday, December 2nd, 2013

The mobile technology market is currently working its way towards dominance across the globe. More individuals now go online to search for top devices like mobile phones and tablets as invest­ments, boosting economic benefits for in­vestors and mobile device manufacturers.
Statistics don’t lie when indicating the growing number of consumers investing on tablets and mobile phones. Regular con­sumers love how they can access their so­cial media pages at the palm of their hands with the help of these devices. Moreover, portability also plays an important role as to why many people choose to have these high -end devices.
Entrepreneurs, on the other hand, have also found the benefit of utilizing these de­vices with their many features. Being able to access the internet and respond to their email contacts make these devices more useful and certainly something worthy to invest in from a business standpoint.
Mobile devices and mobile banking
The banking and financial industries re­ceive a plethora of benefits with the avail­ability of these devices. Reports indicate how much people embraced the concept of mobile banking. To be specific, South Korea recently gained attention in the business and digital industries as the country set its mobile banking activity at 47 percent. Ac­cording to resources, this is the highest per­centage of this type of transaction in studies done.
Perhaps South Korea raised the bar when it comes to mobile banking activities, but it doesn’t mean that other countries don’t do as much banking transactions. In general, mobile transaction activities have increased worldwide. This increase is due to various factors influencing the number of individu­als going for this activity. Here are some of the notable reasons why mobile banking, from a global perspective, has increased dramatically this past year.
As mentioned earlier, more people have started to use mobile devices. By applying an obvious rule, more people owning these devices promotes more mobile activities and transactions, including banking.
Owners have different ways of using mo­bile devices for mobile banking. Regular consumers use these devices for checking their balance online and for bank transfers. Entrepreneurs, on the other hand use these devices for more demanding transactions like depositing payments for their employ­ees. All these transactions can be set prop­erly and ensure clients will get the services that they need that are accessible through the internet.
Convenience is the primary reason why many individuals do mobile banking. Imag­ine this scenario: you are waiting for funds to be deposited to your account. To check your funds, you go to an automated teller machine to inquire about your balance. If you are unlucky, you see a long line of individuals who also need to use the ATM. Therefore, you need to wait for several min­utes just to find out that your funds were not deposited. Imagine the time wasted by bank clerks and teller machines just to check for funds that you can’t withdraw. By checking your account balance online using mobile devices, you’ll know whether your funds arrived or not before walking or driv­ing to your bank.
Convenience of simple bank transfers can also be done through mobile devices. With a simple tap on tablets or mobile phones, users can transfer funds to desig­nated accounts and go on with other tasks.
More supported mobile banking apps
Mobile apps became popular among con­sumers together with mobile devices. Ac­cessing social media pages is now easier, as users simply need to tap on the mobile app to be connected immediately.
Due to mobile apps’ surging popularity, banks and other finance-related companies started to develop their own mobile banking apps for people to download and use. They offer these mobile apps free for customer satisfaction while providing a lot of benefits when it comes to banking convenience.
Aside from creating mere apps for mo­bile banking, banks and their program de­velopers ensure regular updates on their provided apps. Similarly with conventional software, mobile apps may have specific bugs that require fixing to avoid system in­consistencies. Upgrades may consist of a list
of components from feature updates, bug fixes and additional features with unique functionality.
The fact is that mobile apps and their re­spective updates’ availability promote the increased number of people who engage in mobile banking. Users trust these mobile apps and decide to use them more regularly.
A question of trust
As people tend to look at the obvious ben­efits of mobile banking, many individuals don’t notice that trust is also an important factor affecting this practice and its activity. Banking involves money as well as personal information, and hence consumers tend to be more careful about such transactions. With the help of technological advance­ments, hackers have been able to steal bank account information resulting in theft of both money and information. Knowing this, a lot of individuals still tend to not use the internet for their transactions.
On the other hand, a person’s asset amount, or wealth, may also have an ef­fect on the level of trust involved on mobile banking. A survey involving American and European consumers indicate that individu­als such as those who have a lot of assets would choose to avoid mobile banking. There’s a high chance that their greater wealth relates directly to this lowered trust. Having more money or assets move people to be more careful in doing their banking transactions. They tend to do their transac­tions personally in banks and talk with ac­tual bank personnel.
Nevertheless, the number of individuals who trust mobile banking has also increased and resulted in the presented statistics men­tioned earlier. The number of regular con­sumers who have average amount of bank savings is larger than those who actually have more money in their accounts. Count­ing all the people who have these regular consumers’ accounts is enough to indicate why more people tend to go for mobile banking.
There are several factors or reasons as to why many people trust mobile banking, in­cluding the following:
‘Lesser amount, lesser to lose’… as men­tioned above, people who have lots of mon­ey may not choose mobile marking. In es­sence, they have more money to lose in case their mobile banking system encounters a problem. Individuals who have less money in their accounts may have the mindset that even if they lose it due to mobile banking problems, they won’t lose as much com­pared to those with more funds in their ac­counts.
In case of transactions, they may have fewer amounts of funds to transfer in their transaction. A lesser amount of money wouldn’t require extensive reviews coming from bank staff members. Therefore, po­tential problems can be fixed faster and the funds made immediately available.
Worldwide digital technology enhancements
Security is a primary concern in dealing with bank accounts. And in terms of mobile banking, the internet serves as the medium that allows people to make transactions without visiting banks personally. However, the internet is also a known way for hackers to access people’s information online and use it for theft.
Fortunately, internet and website ex­perts continue to contribute to promoting enhanced security online. Security scripts with improved features serve as the first line of defense against unauthorized access and protect people’s accounts.
Aside from this, experts have also helped in improving security to banks’ server sys­tems. Just like in regular accounts, servers are also prone to hackers invading the sys­tem and gaining access to information that may compromise accounts. Banks consider improving security as an investment and so they ensure that their experts can guarantee that clients will be confident in saving mon­ey or doing other transactions with the bank.
Experts focus on improving server safety by focusing on various factors. They en­hance security both internally and external­ly. Some online transactions are only acces­sible for higher authorities in a bank while others, like clients, have their own access to their accounts.
Bank transaction framework
While banks generally help people save money, they also have several frameworks that target specific markets. This also con­tributes to the number of individuals trust­ing mobile banking and banks who support online or mobile services.
According to reports, Asian banks in countries with higher numbers of mobile banking users have different ways of target­ing their clients, resulting in more individu­als adapting use of this technology. More­over, they also have other services that local clients find beneficial. They are undoubt­edly different from other countries’ opera­tion so it also contributes to how people use mobile banking options.
Mobile banking is now a known proce­dure among many individuals across the globe. A lot of bank account owners have embraced this concept with open arms and find them quite useful for their daily trans­actions. However, not all individuals are quite open to this concept due to various factors affecting their mindset. Currently, South Korea is leading the mobile bank­ing use within a three-month timeframe. However, different changes may still occur online that may result in an increase not only in South Korea but also in other Asian countries. Further enhancements can be ex­pected in the finance world, which will also boost this procedure’s popularity

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