1.

0 INTRODUCTION

The banking industry such as Maybank, OCBC Bank, Bank Simpanan Nasional (BSN) Bank
and most of the banks are being reshaped by globalization, competition and innovation and
customer needs. Furthermore, since the novel coronavirus had affected worldwide,
information and communication technology (ICT) advances not only in bank sectors but also
in other industry.

Banking's very essence has shifted in recent years. What used to take place exclusively in
branches may now take place anywhere in the world, at any time, and via any delivery
channel a consumer chooses (ATMs, telephones, personal computers). As a result, the
traditional banking network, which consists of physical branch infrastructure, is more and
more threatened by information technology embodied in automated forms of customer
engagement (ATMs, call centers, internet banking, mobile banking) help decrease costs and
provide clients the option of alternate delivery the channels (Darlington, 1999). As a result of
the advent of new technology, bank tactics have undergone substantial changes, and branch
banking has begun to lose ground to virtual banking as the usage of remote banking services
has expanded.

2.0 SMART MOBILE BANKING SERVICES ISSUES

2.1 Issues in India

According to (V.Devadevan, 2021) due to the revolution of 2GM 3G, 4G and 5G it had
become major challenges for the banks as it was start with the smart mobile banking services.
Furthermore, he had mentioned in the article that there was a technical problem increases
along with number of mobile banking customers like problems in banking transaction,
password / MPIN. In additional, many customers had complained on the transaction limits. In
India, there other challenges face by the bank users are risk of theft.

The cell phone is a little gadget that is vulnerable to theft. This will be the most significant
security problem for customers who use or want to utilize mobile banking. For efficient
mobile banking usage, customers must be informed of how to utilize mobile banking and the
security protocols that must be followed. Different languages are spoken in different places of
India. Mobile banking makes it easier for the rural people to have access to financial services.
This necessitates customer-friendly financial software that can be accessed in their own
language.

In this case we can identified that in India the challenges faced by the bank sectors are
language barrier, security problem during the transaction, and technical problem. Even
though the technology has been improved day by day yet, the number of theft increases
simultaneously with the improvement. Followings are the attachment and references from the
survey carried out by the scholar.

Table 1: Bank customer respective about mobile banking services

2.2 Shifting banking habits

During the epidemic, there has been an increase in the use of online banking. Since March
2020, TSB, a UK bank, has seen a 137 percent rise in internet banking enrolment. Due to
lockdown limitations, internet banking popularity has skyrocketed, with up to 80% of
customers preferring online banking over visiting the bank, and banks all across the world
have begun to close their physical locations.

In addition to a rise in digital banking usage, there has been an increase in contactless
solutions in the middle of social distancing behaviours. In 2020, Mastercard anticipates a
40% rise in worldwide contactless transactions. As consumers transition to digital and
companies begin to expand their ecommerce capabilities, the need for totally virtual,
contactless banking solutions will grow.

Furthermore, wearable payment device use has increased, and analysts anticipate that the
market value of wearable payment technology will rise at a compound annual rate of 29.8
percent between 2021 and 2028. Banks must maintain their product offers current in light of
the rising change in digital banking habits. It is up to marketers to ensure that consumers are
aware of their bank's comprehensive product offering when they launch new online banking
capabilities, thus enhancing the online banking experience for them and exposing them to
the various benefits that come with doing banking online.

2.3 Security

Because of the inherent risks that have always been connected with online banking, security
is one of the most critical problems for online banking marketers. Despite the fact that
financial systems are meant to be almost impregnable, cyberattacks and fraudulent conduct
are still a possibility. However, many users are unaware that their online behaviours are
putting them at risk.

Mobile browsers and applications are responsible for 71% of fraudulent bank transactions.
Fraudsters prey on the user's lax privacy practises. People are prone to internet assaults such
as login credential theft and phishing as a consequence of issues such as weak passwords
and accessing unprotected networks, which might result in fraudulent financial transactions.

Marketing experts in the online banking industry must focus not only on displaying and
explaining the security of their online banking systems, but also on educating clients on
how to be more careful online by improving their privacy and security practises. Multi-
factor authentication and the use of passphrases are smart places to start.

Although banks have built up security procedures to guarantee that online transactions are
safeguarded from internet security risks, the advancement of online banking and its rising
use by customers worldwide has made this service a favoured target for cyber criminals. In
fact, electronic banking entails several operational risks: one primarily related to the
security of systems and transactions, including data confidentiality and authentication of the
parties involved, and another involving the continuous availability of the Internet for
financial transactions, which can expose users to significant risks such as hackers and
computer viruses (Sokolov, 2007). Cybercrime, also known as computer crime or electronic
crime, is a type of economic crime done with the use of computers and the internet.

2.4 Technical Issues

When we use the internet, we run the danger of having technological and service outages. If
your internet connection is sluggish or unavailable, your ability to access your accounts may
suffer. Similarly, no matter how advanced the technology, bank servers are still susceptible
to both intentional and unintentional outages.

System downtime can be difficult since users are unable to make payments or perform
transactions, and worries about data and fund security begin to surface. Every year, firms
might lose $1.55 million due to downtime.

Marketers should prioritise reassuring customers by assuring them that their cash are not at
risk if technological troubles arise. They should, however, guarantee proper communication
of planned system downtime, such as scheduled maintenance, so that consumers are aware.

2.5 Lack of Personal Relationship

Although 73 percent of individuals globally use online banking at least once a month, more
complicated consumer demands might be challenging to address with digital banking alone.
The advantages of having a personal relationship with your bank are sometimes neglected,
as bankers' participation may often make negotiating difficult financial issues simpler.
Having an in-person banking connection allows clients to evaluate their alternatives and
identify solutions that are personalised to their specific needs, which is not as easy to
achieve with self-service.
The ideal situation would be a combination of internet banking for day-to-day transactional
requirements and personal interactions with bank personnel to assist consumers in finding
the best solutions for their overall banking needs.
Marketers may strive for this balance by informing clients about how to contact actual
people while also ensuring that their digital banking experience is simplified and simple to
grasp. Customers will be kept as informed as possible in both the digital and physical
banking environments as a result of this.
2.6 The changing banking landscapes

The evolving financial landscape has resulted in an increase of digital-only banks and
FinTechs providing simplified banking products. Nubank, a Brazilian neobank, had 25
million users as of June 2021. In the United Kingdom, there is a booming challenger bank
sector. Chime's client base grew by 8 million in 2021, increasing its total to 12 million.
While the following are only a handful of the other UK challenger banks (or neo banks)
seeing rapid growth:

a) Revolut has 15 million individual users.

b) Monzo has about 5.6 million personal users.
c) Starling Bank has almost 2 million clients.

Neobanks, which are considered more agile and transparent than traditional banks, have
completely embraced the potential of digital to provide a smooth banking experience with
low to no costs. Traditional banks face severe competition from them, as simply having an
internet banking component is no longer sufficient. Traditional banks must continue to
embrace digital transformation and adjust their services so that they are as accessible and
efficient online as they were in-branch.

Banks may aim to exploit customer data to deliver a more personalised banking experience,
rethink call centre strategies and upskill personnel to handle complicated client demands,
and find possibilities for digitisation across the value chain, such as process digitisation and
intelligent automation.

While banks try to improve their competitive advantage in a changing financial

environment, marketers may save money by boosting their banks' depth of expertise and
well-established presence. Furthermore, when banking behaviours change, they may
continually emphasise the value they give to clients' banking experiences through user-
friendly platforms, expanded digital product offerings, and open and fast communication.
3.0 DISCUSSION

3.1 Security is of the utmost importance.

Developing a safe and user-friendly mobile banking software for two distinct operating
systems (Android and iOS) appears to be a difficult task due to their differences. It is critical
to strike a balance between security and usability. In recent years, mobile banking trojans
have risen to the top of the list of mobile banking dangers. Although implementing multi-
factor authentication is simple, customer feedback is negative.

One solution to this problem is to implement fingerprint, voice, or face recognition

technologies. This biometric technology examines physical traits as well as behavioural
trends. By removing user friction and security flaws, this enables a new level of security and
usability. Nonetheless, when it comes to UX design, it is beneficial for developers to follow a
"security first" mentality.

3.2 Legacy system integration and consumer interface

Almost 66 percent of consumers who use mobile banking on a daily basis desire simpler and
faster services, which many legacies financial institutions are unable to provide, owing to the
lack of genuine integration of back-end systems and manual processes with front-end
technologies. This lack of adequate integration significantly impedes banking and financial
enterprises' digital transformation aspirations. Because a 360-degree transformation would
require replacing or considerably upgrading the old back-end systems, the current approach
to integration is to construct a layer of apps around the legacy systems to give a customer
interface. In the future, a middleware — a Java or PHP based backend – will be used to
communicate between older systems and mobile apps.

Another approach is to use cloud computing to build Infrastructure-as-a-Service (IaaS). Even

a hybrid integration can use APIs to connect ancient systems to internal and third-party
applications.
3.3 Emerging technologies are making inroads into the mainstream.

With emerging technologies such as AI and machine learning, mobile banking applications
will reach new levels of sophistication, particularly with voice and facial biometrics, as well
as growing trust in the usefulness of chatbots. It is predicted that by 2020, voice-based
searches will account for half of all searches. These speech searches are expected to be
carried out by AI-powered voice-enabled assistants. Voice-activated AI can do searches and
even initiate payments. Voice-controlled smartphone applications are currently available. The
Royal Bank of Canada, for example, has integrated Siri into its smartphone app.

Many institutions have already granted a go-ahead to face and image technologies.
Incorporating facial biometric technologies into the user experience can result in considerable
time savings and enhanced productivity.

Banking chatbots are gaining popularity, and by 2020, chatbots will account for 85 percent of
client interactions with banks. American Express (AmEx), for example, utilises chatbots that
can detect and terminate credit card fraud.

3.4 Personalized customer service is really effective.

The potential of customising services via mobile banking applications has not yet reached a
climax. This involves both user experience and content customisation. Allowing users to
modify home screens, pick colours, and raise or reduce text sizes is an example of UX
personalisation. Customers who prefer self-service would benefit from extra how-to tutorials
and rapid access to customer assistance (help buttons). Geo-fence-based notifications or
reminders can be issued to customers when they are in close proximity to the bank using
content personalisation. This real-time location-based user experience design can enhance
app engagement by twofold.

Personalization can also take the shape of budgeting tools, financial consultants for
investment advice, and even appointment scheduling for VIP consumers. These functions can
be easily performed via AI-integrated design. It may also be used to gather data and financial
records in order to cross-sell items to the appropriate consumer at the appropriate time.
3.5 Decrease consumer input and simplify navigation to reduce effort.

A decent mobile banking design should ideally contain effective navigation and fast
redirection to guide users to the desired information. The app's landmarks and icons, such as
search boxes, section navigation tools, and labels, may make it look intuitive while being
straightforward to use. However, using touch heat maps to discover where the consumer is
becoming confused in the navigation process might help to correct the issue regions. It is also
a good practise to indicate to the consumer the screen they are on by highlighting the
appropriate icon.

The first step toward customer satisfaction is a mobile banking app that does not require too
much work from the consumer. Customers' effort and mistakes can be considerably reduced
by automatically filling data or setting up defaults for repetitive tasks. Autosuggestion, spell-
check, and predictive text, when used sparingly, can reduce the amount of time spent on data
entry.

It is critical for banks that want to please their mobile banking customers to provide a high-
quality user experience. A excellent user experience will most certainly pay dividends in the
long term by improving revenue through increased customer satisfaction and customer
loyalty. In addition, AI will play a role in providing a more refined user experience in mobile
banking applications in the future.

4.0 CONCLUSION

The market for mobile phones, particularly smart phones, is exploding, and banks want to
capitalize on this development by offering mobile banking as an additional channel for
providing services. Customers, on the other hand, are apprehensive of new technology, and
the literature is filled with articles that analyses consumers' early opposition to technical
innovations. In reality, the usage trend suggests that individuals prefer to use ATMs over
online banking or mobile banking. In light of this, the current study provides insights into
mobile banking users' perspectives and attempts to identify elements that may encourage
more individuals to embrace mobile banking. The study's findings are labelled as time-
effective, safety, convenience, and operational simplicity.
For over two decades, mobile banking has been lurking behind the scenes. Finally, it is on the
verge of a significant transition. The fast expansion of the telecommunications sector has
established the groundwork for mobile banking, which will permanently alter the user
banking experience. However, there are a few issues that banks must address before reaping
the benefits of mobile banking. To do this, they can collaborate with a mobile banking
solution provider to create a next-generation mobile banking system with all of the newest
features and technological stack.