Go Mobile, Go Green

By Joseph Salesky, ClairMail Inc.

Care about the environment, but still have a load of bills stacked up in the mail pile? Everyday, consumers are becoming more aware of the effects their actions have on the environment. They are trying to do their part by employing the mantra that children learn in grammar school: "Reduce, Reuse, Recycle."Often, though, the first word in that phrase-Reduce-is forgotten. For example, if a person who receives five paper statements per month and pays those bills by mail with a check instead uses a paperless method for bill presentment and payment, one would save two pounds of paper, prevent 18 gallons of wastewater from discharging into oceans, lakes and rivers, and avoid the emission of 76 pounds of greenhouse gases. That's the equivalent of driving 73 fewer miles per month.

Yet, this method is underutilized. According to a recent report by Javelin Strategy and Research, 75 percent of consumers still receive paper statements and about 34 percent pay by paper check. Thankfully, a new paperless method is available for reducing the amount of waste the average consumer generates: mobile banking.

Mobile banking is emerging as an integral part of any "green banking" program as more financial institutions look for opportunities to "go green" and offer more ways to invest in green ventures. Javelin shows that 43 percent of consumers would rather do business with a company they perceive to be "green." With mobile banking, financial institutions can cut costs, generate new revenue and improve customer service while providing convenience and cost-savings for consumers, all while supporting their green banking initiatives.

With two-way mobile banking, consumers can receive dynamic, real-time alerts with time-sensitive information about their accounts (e.g. their balance is low or a questionable account activity has occurred), and resolve the issue directly on their mobile phone by simply responding with a text reply (e.g. to transfer funds or verify the transaction) without having to visit a branch or ATM. Consumers can also access account balances, transfer funds and get transaction history by using their mobile phones rather than going to the bank.

The breadth of banking tasks that can now be accomplished using a two-way mobile banking technology means going to the bank or ATM is less of a necessity since banking can be done from anywhere at anytime with a mobile phone. Even Javelin says that mobile banking helps "cut down on trips to the ATM or local branch, which reduces pollution and saves money on gas." And don't forget-one less trip to the ATM means one less crumpled ATM receipt in the trash.

Mobile payments, an offshoot of mobile banking, add to a bank's earth-friendly solutions. M-payments offer a simple, convenient and paperless method for consumers to pay their bills via mobile phones-with no more paper bills, checks, envelopes, postage stamps or trips to the post office. While many companies offer online bill payments, mobile bill payments allow consumers to receive bills as two-way alerts that can be paid by simply responding "yes" or "no" via SMS; there is no need to find a computer and log in, and no paper is required. Moreover, paying bills on a mobile phone helps consumers avoid late fees and enables financial institutions to generate revenue by offering an expedited payment service.

Simplicity, convenience and security are what will drive adoption of green banking initiatives. Today's mobile banking and payments options are both eco-friendly and user-friendly, only requiring familiarity with the mobile tools that consumers are already accustomed to using, such as SMS and mobile web. Additionally, two-way mobile banking has proven to be more secure than traditional online banking by employing multi-factor authentication and using encryption for both data in transmission and stored data; all confidential information is protected and none is stored on consumers' devices. Managing accounts via the mobile channel provides consumers ready access and more overall control of their accounts, which reduces the consumer's risk for fraud and identity theft.

Mobile banking and payments are green, simple and secure, and can be a revenue-generator for banks. Who knew it was so easy being green?

Joseph Salesky is president & CEO of ClairMail, a Novato, Calif.-based provider of mobile banking and payments solutions.