Internet Banking- The Internet-WAP
Internet banking is now a good growth area, though still in its infancy (Irish banks estimate their regular no. of online users to be in the region of 50-60,000) as banks begin to recognise the potential of the Internet as a trading tool. It is a route that has many advantages for both banks and users. For the institutions, it means lower infrastructure costs; telecommunications centres can be based in Ballydehob as effectively as in Ballsbridge.
Worldwide, administration of investment funds can be relocated to more cost effective areas such as the IFSC in Dublin. For the customer, the brick building on the side of the street will remain the principal transaction outlet, but the Internet and its varying information service gateways are gaining ground rapidly. With almost all electronic devices being explored as suitable for on line e-activities, it must be obvious that its portable nature and available interface make the mobile phone a suitable candidate for online banking. Certainly the advances in the area are by definition revolutionary.
The buzz acronym is WAP. Wireless Application Protocol, originated with Nokia, who proceeded to set up an industry wide task force which developed the standard. Its implications for communications are that it provides the platform for 3rd generation mobiles, allowing them to access the internet. As a result, WAP makes possible access to a wide range of services inc. restaurant and hotel information, stock trading, exchange rates etc., and most critically, banking services. With WAP it is also possible to tailor specific menus within the phone, thereby targeting specific users requirements, in relation to their finances. It is projected that by the year 2002, 400 million people will regularly use the internet and 600 million will own mobile phones.
The insatiable appetite of those who are already computer compliant for faster information access is mirrored by societys increasing demand for faster seamless service in every sector of their lives. They are demanding and are getting a standard which will create the critical mass needed for banking institutions to operate profitably a cellphone banking service.
There are however a no. of disadvantages inherent in the use of mobile telephony as a medium for banking. First of all the screen size on a cellphone is limited, rarely larger than 35mm by 25mm, therefore it is impossible to view whole documents or a large amount of comparitive material on one screen, unlie on a p.c. oreven some pda's. In the past no of days, AIB and Eircell have announced details of their mobile banking pilot service.
This will allow some services such as transaction details and account balances to be accessed through mobile phones. This is in reality an adaptation of short messaging services. In the future, it will be possible for funds to be transferred between accounts and for certain bills to be paid, as they can online with AIB at present. The current WAP enabled stock exchange info service will enhance this service.
According to Billy Andrews, General Manager of e banking at AIB -" the mobile phone is already an indispensable communications link to many customers as is the internet (and) the new service we have developed with Eircell, allows us to combine the visual advantages of screen based banking with the portable advantages of the mobile phone.