Banking Review

SMS Banking for NAB

The NAB SMS banking service launched last week provides customers with account balances, mini statements and funds transfers between linked accounts. The service will be provided free to registered customers until the end of October.

From November customers will incur costs of 25c per account balance or mini statement transaction and 40c per funds transfer transaction. NAB has also introduced security mechanisms in the form of customer created nicknames for accounts rather than using account numbers.

NAB Media Manager Felicity Glennie-Holmes told Online Banking Review, “The SMS service is piggybacking off our internet banking platform so it does require customers to change their settings to enable the system.”

“However, the service does not require software or the customer to have a specific mobile phone. Once a customer registers, 10 seconds later, they can start using SMS banking. This is a simple service to start with but different payment transactions may be considered in the future,” Glennie-Holmes said.

Serge van Dam, Head of Marketing at M-Com, providers of the ANZ’s mobile banking solution, told Online Banking Review, “SMS banking, like that being offered by NAB, is really the starting point for a retail bank’s mobile banking journey. Banks offering mobile financial services will need to leverage mobile SMS, browser and downloaded application technologies in the longer term if they are to exploit the opportunities brought about by the mobile phone revolution.”

“Much like within online, where people simultaneously use email, the Web, chat and instant messaging to interact with banks and enterprises, customers will opt for an equally diverse set of experiences through their mobile device. There is nothing new about mobile, consumers want to interact with banks on their terms through mobile phone habits they have already formed,” van Dam continues.

In the seven days since the launch of the NAB service 2,926 customers have registered to use the SMS option. NAB Internet Banking customers can register for SMS banking within Internet Banking. If customers are not Internet Bankers, registration is via NAB call centres. In comparison, ANZ mobile banking services can be accessed by customers who are registered for either internet or phone banking services.

Mobile and SMS banking services combine the benefits of both Internet and phone banking services. It is probable that customers seeking to migrate to SMS and mobile banking may be only registered for phone banking. To date, no institution has provided a single registration solution across these multiple channels.

Are the current mobile and SMS banking offerings in the market meeting the needs and behaviours of customers? Would seamless sign on processes resonate with intended customer base and increase usage rates?