Jun 2016 Financial News

Mobile banking solutions gain traction as internet penetration deepens

Jun 17, 2016

CIBC FirstCaribbean this week announced the launch of its mobile banking app for smartphones which can be used for checking account balances, transferring funds, paying bills and locating branches and instant tellers.

On the back of increasing mobile broadband penetration, local banks are becoming more bullish on mobile apps and mobile money solutions, with some reporting increased client usage of the banking app.

With more than three million phones in use in the island, or above 100 per cent penetration, the banks are throwing the net wider for account holders who want a more convenient banking experience.

Trevor Torzsas, managing director of Customer Relationship Management and Strategy CIBC FirstCaribbean said the bank’s new Mobile App is one of “a series of innovations including internet banking introduced to help the bank’s customers determine the banking experience they want – in essence control over how and when they bank is entirely in the hands of the client.”

Locally, mobile broadband subscription penetration rate improved from 35 per cent in second quarter 2014 growing to 48 per cent during April and June 2015, the last quarter about which the Office of Utilities Regulation (OUR) has provided information.

Scotiabank Jamaica said Wednesday that during 2015 there was 30 per cent increase in use of the Scotia Mobile App in Jamaica. The app, which was initially rolled out in 2013 for iPhone and Blackberry devices, was upgraded for Android phone users in 2014.

Lesli Prendergast, senior manager Transaction Migration at BNS said the app permits instant access to check account balances and transaction details; pay bills; and transfer money between accounts. It can also locate Scotiabank Branches and ATMs across the Caribbean with the “find us” feature.

NCB is targeting a mobile wallet solution for deployment later this year. The finance group said in first quater 2016 that it had successfully completed a pilot of a mobile banking solution and expects to get Bank of Jamaica (BoJ) approval for its use this year. The bank indicated that it is spending in the region of $500 million to roll out this and a suite of other digital initiatives.

Using Finovate 2014, software developed by US-based Quisk, the mobile money solution will enable customers to leverage their mobile phones to send money to family and friends and pay for goods and services.

The cashless and cardless solution, using multiple encryption levels and with other security features, should allow cellphone users to have a mobile wallet for spending and transfers, using only their phone number and PIN. It does not require a smartphone, NCB indicates.

For CIBC, the banking app can be accessed via Android, Apple, Blackberry and Windows devices.

In the release announcing the app, Torzsas said it was intended to provide, “banking that fits your life. We are ultimately aiming to provide to all our customers, and our products were the obvious place to start and our mobile banking app is just one of those innovations,” the bank executive noted.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter
Jamaica Observer
Friday June 17, 2016

http://www.jamaicaobserver.com/news/Mobile-banking-solutions-gain-traction-as-internet-penetration-deepens_64131