The Global Market has opened up opportunities for banks. New opportunities for evolving financing involve biting into global banking. One area that needs more attention from banks is the area of entering the global market through worldwide mobile payment access. Companies like Amazon have jumped on the bandwagon and have shown significant profit increase. Banks have been hit hard by mobile payment systems because the payments do not go through the bank. Instead, the payments go through Internet sponsored financial transitions by companies, such as PayPal.
Many companies continue to pay with bank drafts and invoices. However, the world is on the edge of becoming an international society connected through transactions using mobile banking and relinquishing the use of checks and business that runs through banks.
Most banks have already provided consumers with on-line banking. Consumers have responded by making use of the Internet to track their accounts, etc. However, banks need to consider the sizeable losses they will experience when corporations and business owners begin to bypass banking services in lieu of using mobile business-to-business transactions. In addition, when it comes to the global market and business-to-business financial transactions banks have an opportunity to capitalize by participating in mobile banking. One of the reasons is that banks are not always internationally available in different regions of the world. If a buyer desires to make a purchase with a check, the time lapse that it would take for the check to be cleared by the bank could lead to the business owner paying increased fees because of the dollar's fluctuating rate of exchange.
As other companies begin to modernize their methods of transactions and the manner in which they conduct business, banks are guaranteed to lose some of their profits. Banks need to re-evaluate their operations allowing the consumer to make and complete transactions by reducing risk, increasing opportunities for purchasing, paying salaries, and other operations. In countries like Brazil, Vietnam, and Indonesia, mobile banking has become the norm. In addition, banks can gain additional information based on the transactions of the consumer each time mobile banking is used. The information can provide the banking industry with other opportunities to create apps or programs to meet consumer needs.
As the trend continues to demonstrate that Internet-based banking is increasing, banks cannot afford to sit back and miss the opportunity to revamp their programs and invest in mobile banking by establishing digital ecosystems that place them in the running for increased profits.