MOBILE BANKING AND ITS ROLE IN IMPROVING OPERATIONAL PERFORMANCE OF BANKS

Abstract

The rapid growth of digital technology has significantly changed the way banks provide financial services to their customers. Mobile banking is one of the most important digital banking channels as it allows customers to take financial transactions on their mobile phone without having to go to a bank branch. Mobile banking apps have made it easy to make convenience services like fund transfers, check your balance, pay bills, manage your bank account, pay a loan and virtually anything else. Mobile banking is not abandoned to the role of customer convenience, though; it is also useful to bank operations and their performance. It will decrease the number of routine transactions that must happen at banks, lower costs, and increase speed in service, lessen paperwork and allow banks to service more customers using the same resources. The present study aims to investigate the role of mobile banking in enhancing bank's operational efficiency particularly with respect to cost efficiency, transaction processing, employee productivity, service delivery and accessibility of customer to the bank. In addition, problems that arise in mobile banking such as cyber security threat, technological errors, customer awareness, digital literacy and reluctance to technological change are taken into account. The research indicates that secure and easy-touse mobile banking could play a key role in boosting the effectiveness of the banking industry operation and in competitive strategies toward sustainable growth.