Mobile banking seen to overtake Internet transactions

  • Business
  • Friday, 02 Dec 2016

KUALA LUMPUR: MALAYAN BANKING BHD (Maybank) expects the number of mobile banking transaction numbers to soon overtake Internet banking transactions in line with global trends.

Maybank’s head of enterprise architecture and strategy Meraj M Khan told StarBiz that people increasingly preferred to use mobile devices and this trend was seen in the west.

“In countries such as the US or Sweden, mobile banking is growing beyond Internet banking wherein transactions actually originate from mobile banking. While in countries such as Malaysia we are still a predominantly internet banking transactors,” Meraj said at the sidelines of D+H’s Future of Payments briefing yesterday.

He said that the trend will soon catch up in Malaysia and that there was a need for banks to put in place adequate infrastructure to keep up with these developments.

“I see that the tipping point has not happened for the growth in mobile banking yet and we are still growing predominantly in internet banking. The tipping point is when mobile banking overtakes Internet banking,” Meraj said.

“I believe the tipping point will soon come to pass as some of the early behaviour shifts are already happening such as in here most of the searches are happening from mobile (devices). Searches has moved from web to mobile but banking transactions are still predominantly through the Internet and for it to move to mobile it will take a few more years,” he added.

He also said that it is likely that costs for mobile banking could drop as adoption rates rise further.

“Mobile banking is still at an early stage (in Malaysia) and the cost per transaction is still slightly higher than internet banking. Despite this, the cost is still only a fraction of what is there on the branches or the automated teller machines (ATMs),” Meraj said. “To me financial technology (fintech) is more of the digitisation trend helping to reduce costs and it will be very much the branch costs.

The ATM costs are lesser than (operating the) branch costs while internet banking costs the least. Between Internet banking and mobile banking, Internet banking is (still) the least because of the sheer scale and volume of it,” he added.

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