Mobile Banking Security
CHAPTER ONE INTRODUCTION
Research Background Mobility is one of the key factors which businesses thrive. Businesses that embrace the idea of mobile information society will re- invent themselves as real time organizations, where access and interaction can be instant. New brands, partnerships and customer loyalties are on the rise thanks to the growing number of mobile terminals. It is estimated that by the end of 2012 there will be over 10 billion mobile phones subscribers in the world and this is an evidence of their increased role in business both to the customers and to the companies. Three major segments that can substantially benefit from anywhere and have anytime access to information and services with the use of mobile phones are financial services, health care industry and corporations with a mobile workforce. Tightening competition, globalization and changes in customer behavior present new challenges to many service organizations. Combined with advances in technology, they have put several industries into round-the-clock operations. Financial institutions are no exception their distribution systems and customer interfaces has gone through major changes by innovatively combining mobile technology with other distribution channels, financial service providers can establish closer, more profitable and more stable customer relationships. It is important at this juncture to trace the genesis of mobile banking in Kenya. In 2005, a development agency requested for proposals from interested parties on cost effective ways of deepening Kenya’s financial sector through enhanced access to financial services and products. Safaricom, a mobile service provider in collaboration with Vodafone UK, one regulated commercial bank and two microfinance institutions submitted a proposal based on the use of mobile phones to transfer money.
Research Background Mobility is one of the key factors which businesses thrive. Businesses that embrace the idea of mobile information society will re- invent themselves as real time organizations, where access and interaction can be instant. New brands, partnerships and customer loyalties are on the rise thanks to the growing number of mobile terminals. It is estimated that by the end of 2012 there will be over 10 billion mobile phones subscribers in the world and this is an evidence of their increased role in business both to the customers and to the companies. Three major segments that can substantially benefit from anywhere and have anytime access to information and services with the use of mobile phones are financial services, health care industry and corporations with a mobile workforce. Tightening competition, globalization and changes in customer behavior present new challenges to many service organizations. Combined with advances in technology, they have put several industries into round-the-clock operations. Financial institutions are no exception their distribution systems and customer interfaces has gone through major changes by innovatively combining mobile technology with other distribution channels, financial service providers can establish closer, more profitable and more stable customer relationships. It is important at this juncture to trace the genesis of mobile banking in Kenya. In 2005, a development agency requested for proposals from interested parties on cost effective ways of deepening Kenya’s financial sector through enhanced access to financial services and products. Safaricom, a mobile service provider in collaboration with Vodafone UK, one regulated commercial bank and two microfinance institutions submitted a proposal based on the use of mobile phones to transfer money.