Innovation in banking through mobile solutions and its future implications

It is a fact that companies should use technology to be efficient, profitable and meet customer expectations in their internal processes. In addition, companies operating in service sector should use technology to increase customer loyalty and to build an innovative company perception. Therefore, banks are investing on technology very much and they are very successful integrating technology into their processes. Migrating customers to do their basic transactions through alternative delivery channels instead of doing them by using their branch, help banks to increase their efficiency. Therefore, banks firstly deployed Automated Teller Machine (ATM)s in order to decrease length of the queue in front of the tellers. Secondly, call centers had been started to use to respond customers? questions and requests. Following the call center operation, internet branch was the third alternative delivery channel that had been deployed and finally, in the beginning of the 2000s, mobile banking emerged. Although banks continued to invest on mobile banking, due to lack of mobile internet speed and user friendly handsets, the usage of mobile banking was not reached to the targeted mass. In the following years, the mobile internet speed was increased by introduction of third generation technology (3G). User experience got better with smartphones and the need of using internet was increased due to social media services along with mobile internet usage trend. Customers started to use mobile internet for a wide range of services in their day to day life and also requested to do banking transactions by using smartphones. Therefore, banks positioned mobile banking as the fourth alternative delivery channel. Mobile banking is the unique alternative channel that allows customers to do their transactions location and time independent. The aims of this thesis are; giving deep information about mobile internet banking, assessing consumer motivations to use mobile banking, inquiring whether mobile banking will be the only channel which the customers interact with their banks and finally recommending innovative services for mobile banking.