About the author: Arno du Toit is CCO of Virtual Mobile Technologies.

South Africa has one of the most established mobile banking environments in the world, yet most banks still offer a one-size-fits-all approach to cellphone banking.

We have yet to see more sophisticated services appear at the premium end of the market, which could offer customers new mobile banking capabilities and additional low-cost channels for banks to reach their customers.

In a recent World Wide Worx report, 37% of South African cellphone owners use mobile banking services. Whether they use an entry-level phone or the latest smartphone, they are all offered the same services, running over USSD and mobile Web. It makes sense at the lower end of the market, as it is vital to provide banking services to people without Internet or in remote areas. But choosing a lowest common denominator approach results in users of high-end devices not having a choice in how they interact with their banks, and they are often left with a less than optimum user experience.

It has been possible to roll out mobile banking applications on most phones with Internet available since 2003. These application-based services are far more secure than USSD or mobile Web banking options, offering United States National Institute of Standards and Technology-approved security levels, as well as more capabilities than USSD.

It’s not about choosing one technology over another on behalf of customers and forcing them to engage with their bank in a certain way. In an ideal world, customers should be allowed to interact safely and conveniently over whichever channels they choose, with the best user experience and functionality. By using a mobile enterprise application platform, banks can provide services to all devices quickly and cost-effectively, with a consistent level of security across all devices.

Mobile banking can offer a win-win situation as it ticks all the boxes in terms of business drivers for the banks when compared to traditional channels: a lower cost of service; improved competitiveness; improved customer acquisition and retention; and a launch-pad for future products/services. For customers, it means they can track their finances; transact whenever they like; and possibly at a lower cost than traditional services. In South Africa, where the primary Internet device is a cellphone, mobile banking makes sense.