Challenges and Prospect of Mobile Banking Wikipedia (2010:5), observes that the key challenges in developing a sophisticated mobile banking applications are; a) Handset operability b) Mobile banking security c) Scalability and reliability d) Application distribution.
a) Handset operability: There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking services on any type of device. Some of these devices support Java Me and other support SIM application Toolkit, a WAP browser, or SMS only.
This is because of the manner in which mobile phones applications evolved over time and the device manufacturers focused on particular standard and this led to a proliferation of applications (Okoegwale,2008:2)
b) Mobile banking security: Security of financial transactions, being executed from some remote location and transmission of financial information over the air, is the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network services providers and the bankers’ IT departments.
The above aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network: If the bank is offering a smart-card based security, the physical security of the device is more important. There should be authentication of the device with service provider before initiating a transaction.
This would ensure that unauthorized devices are not connected to perform financial transactions.
c) Scalability and Reliability: Another challenge for the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base.
With mobile banking, the customer may be sitting in any part of the world (anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24×7 fashion.
d) Application Distribution: Due to the nature of connectivity between bank and its customers it would be impractical to expect customers to regularly visit banks or connect to website for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called ‘’Over the Air’’ Updates). However, there could be many issues to implement this approach such as upgrade/synchronization of other dependent components.