3G network will facilitate mobile banking

 The 3G infrastructure will speed up money transactions with its efficient network.

The network will also allow customers to download data and send larger files, such as financial statements, meaning they could conveniently conduct various financial transactions with their mobile phones.

At this stage, technically aware customers can do limited types of transactions, such as bill payments and money transfers.

The 3G network will also be more secure than other networks, guaranteeing customers safety and efficiency for transactions like money transfers and payments via mobile phone.

Bank of Thailand Deputy Governor Bandid Nijathaworn said the development of a 3G network would have a positive effect on mobilephone banking, because it would enhance business potential. But he said the central bank would coordinate with the National Telecommunications Commission and mobile operators to launch regulations setting safety standards for all mobilebanking processes.

Commercial banks must have sound risk management, in order to prevent fraud, outsourcing and leaks of personal data, he said.

"Otherwise, it could result in loss of money during transactions. It could damage a bank's image and lead to bad feelings among customers," said the deputy governor.

Five years ago, some banks introduced mobile banking for customers but later withdrew the service, due to its lack of popularity and the decision by banks that it was not worth further investment.

Its unpopularity was a result of the speed and network limitations of wireless technology, which did not encourage mobile service.

"At that time, it was not userfriendly technology, so it was difficult to use a mobile phone to conduct financial transactions," said Bandid.

In addition, many customers, particularly retail ones, are concerned about the security of electronic banking, including Internet and mobile banking.

As a result, the development of mobile services in the Thai banking system has been delayed, unlike in Japan and South Korea.

With competition in the banking industry becoming more fierce, many banks have widened their service channels, including mobile banking services. They include Siam Commercial Bank, Krung Thai Bank, Kasikornbank and Bank of Ayudhya.

Technology has played a key role in banking since 1985, when the banks adopted computer systems to support their businesses, including deposits, credit and bank booking and replacing manual data collection.