What makes a mobile phone useful compared to other electronic banking interfaces?
Mas and Kumar offer a hypothesis that mobile banking changes the relationship between a bank and its customers. Specifically, the bank is connecting with poor people by providing access to previously limited services. The mobile phone can operate as a virtual bank card, a point-of-sale (POS) terminal, an automated teller machine (ATM) and a laptop for Internet banking. These are all services that otherwise might be largely inaccessible to the poor by nature of their location and cost. The bank would incur higher investment costs pursuing Internet banking and is instead able to ride the market penetration already made by the mobile phone companies. Also, cell phone technology provides the bank with some useful options. First, it allows the bank to send out personalized messages to market products or communicate account information. Second, the two-way communication eases the account management process. Third, security is enhanced through the use of SIM cards and location awareness. What
