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Mobile banking: near future of banking


  • Gentiana Gjino

    () (Raiffeisen Bank, Albania)

  • Orkida Ilollari (Findiku)

    () (Raiffeisen Bank, Albania)


Banks are now being prepared to take advantage of another profit opportunity which is another product usable by all of us, the 'Mobile phone'. The interest over 'Mobile Banking' product is becoming increasingly intense. Applications and new technologies are spreading through European banks mobilized to embrace this profitable product. It is common knowledge that many users of mobile telephony are actively shifted from PC to mobile devices. It still remains to understand: to what extent this new banking product will represent a gradual evolutionary shift or a revolution that will radically change the landscape of this new industry? How will the competitors react? How aggressive will this new product be on the market? What distinguishes those banks that tend to benefit most from mobile technology? Skeptics believe that the impact of the mobile banking transactions usage will have a negative effect. But, the optimists, who are the most numerous part of the group, see that the use of mobile investments would lead to a significant increase in the income of some bank products. We think that the banks in order to capture these opportunities should begin to believe that: there is a potential to revolutionize personal experience of customers in non-banking financial services. Banks claim that 'Mobile banking' would transform the image of Retail Banking. The unique characteristics of mobile device appear in three distinct areas of marketing innovation: in appropriate banking transactions, in digital commerce, in opening new markets and segments. Opportunities that will create space for these individual 'players' to gain (and lose) market share. Banks will gain market share only if they will pursue a smart strategy and take proper action accordingly to the situation created. Banks are clear that they have left "behind" in this technological innovation. Recent analyses underscore the need for banks to actively respond to this new challenge and recent polls show that Mobile Banking will fundamentally change retail banking in the next five years. They predict that the penetration of mobile technology will not only grow, but also will bring significant benefits to customers. In this regard mobile offers good opportunities to meet consumer preferences, increase loyalty, strengthen relationships and it will bring a positive impact on bank profits.

Suggested Citation

  • Gentiana Gjino & Orkida Ilollari (Findiku), 2014. "Mobile banking: near future of banking," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 7(1), pages 43-51, June.
  • Handle: RePEc:rse:wpaper:v:7:y:2014:i:1:p:43-51

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    References listed on IDEAS

    1. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
    2. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-570, August.
    3. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
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    More about this item


    mobile banking; bank; innovation; technology; customer; opportunities; ads by Google;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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