High-Value Transaction Services Vital for Mobile Banking's Future

Mary Ellen Power, March 5, 2014
mobile banking

Many pundits agree that mobile banking could be the future in the financial sector, but significant advances need to be made to support this vision. Implementing electronic signature solutions could play a key role in the short- and long-term move toward mobile banking functionality. This is especially true as experts believe features that support high-value transactions on mobile channels are necessary. A recent report from Banking Strategies explained that mobile device use is rising across the financial services sector, but banks that want to monetize this trend must look beyond low-value consumer efforts and instead begin to support high-value transactions on mobile devices. There are some barriers to supporting high-value transactions on mobile devices, but solutions like e-signature platforms backed by digital signature technology can resolve these problems.

Understanding the importance of high-value transactions in the mobile banking landscape

Developing the security systems, network solutions, applications, services and regulatory controls needed to support mobile banking is an incredibly expensive and disruptive process. As such, mobile banking functionality needs to escalate beyond being a convenience if it is going to become a valuable asset for the industry. An unnamed executive told the news source that focusing on consumer services that make banking more convenient will not be enough to drive revenue and validate mobile financial service initiatives. Instead, organizations need to begin enabling mobile functionality for high-value transactions to create more revenue opportunities. "Mobile devices can't just be another handy channel for consumers," the executive told Banking Strategies. "Mobility needs to be a business advantage for our corporate and affluent customers and a revenue generator for us. Otherwise, it's like playing miniature golf with your best irons: way too much investment for way too little payoff."

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Using e-signatures to bring mobile functionality to high-value transactions through mobile banking

Most large transactions handled by banks require a combination of authorizations and security controls that can be difficult to employ on mobile devices. This is especially true as signatures are often required to authorize decisions throughout the transaction process. Using paper-based methods for these signatures can be an incredibly costly process as it slows day-to-day processes down and makes it more difficult to complete transactions in a timely and efficient manner.

Introducing mobile device functionality can overcome these challenges, but the signature issue needs to be resolved. Mobile banking e-signature solutions can provide the secure authentication needed for individuals to sign documents electronically. Investing in e-signature solutions can enable financial institutions to adopt mobile best practices for high-value transactions, eliminating inefficiency and risk.