Mobile app development services can bring the underprivileged and the un-banked under the net of banking services. Technology can be used to bridge the gap between the un-banked and financial institutions. Across different corners of the globe there are large sections of people who do not conform to the requisites of banking. The challenges are many fold. From the geographical barriers that make it impossible to have a bank branch in an area, the issues of logistics and transport and the primitive technological landscape that prohibits the reaching out of banks and financial institutions to people, there are diverse issues that can be addressed by using technology.
Overcoming the Challenges Imposed by the Brick and Mortar Model
The traditional brick and mortar model of banking is fraught with many limitations. To begin with rural areas and suburban regions may not have the threshold level of customer base that is required to set up a brick and mortar branch. More over the establishment of a brick and mortar branch comes at a substantially high cost. Basic cost particulars include the semi fixed cost of space rental, electricity tariff, variable costs like salaries of staff, consumables and costs of operations. A small customer base or even a large head count 소액결제현금화 of customers with little or no deposits of saving can be big impediments to the setting up of a brick and mortar branch.
On the other hand business process automation and the embracing of mobile banking and mobile commerce can enable banks to reach out to these deprived customers with innovative products like basic no frills savings accounts, term deposits based on recurring mobile payments, micro credit for consumers and micro credit solutions for self-help groups. In fact banks can enable the rural economy to enhance the rotation of money by enabling farmers and cash crop sellers to execute recurring billing and payments using mobile banking solutions. Mobile app development for low cost smart phones that are highly used in rural areas can increase the volume of transactions. With mobile apps for banking the customers of rural areas ca have access to technology that reduces the cycle time of monetary transactions.
Exploring Uncharted Avenues of Business Using Mobile Apps
It is a statement of the obvious that, banks are financial enterprises that work with the goal of profit maximization. Any economically feasible model of banking is built on the lending capacity of banks. Bottom line and top line in the banking sector are highly dependent on the volume of loans that banks disburse to customers. It is the lending capacity of banks that enables them to create money. While mobile apps cannot be used to dilute the time tested model of credit lending based on 3C model, character, capability and credibility, apps can be a great addition to the marketing ammunition of banks. Banks can use mobile applications development to great use to capture data of suspects and prospects. This continuous collection of data and its insightful analysis can enable banks to prune their credit offerings to strategically fit in with the requirements of customers. Moreover banks can partner with telecom companies to facilitate mobile transfer of money between accounts. In fact this will have the indirect effect of reducing bad debt cases for banks and a lesser proportion of non-performing assets due to credit defaults. There is yet another reason for banks to focus on mobile apps development. It can enable farmers to explore opportunities in the global markets. Farmers who have the advantage of scale can receive inputs on prices of food and cash crops in the global markets and thus carve out well laid strategies to produce crops not only for sale in the domestic markets but also for exports. Similarly using mobile applications farmers can plan and strategize on imports of High Yield Variety Seeds, plant, equipment and machinery instantaneously.