Arkalogic Systems: easy road to mobile banking – Aryo Karbhawono

Mobile banking has become increasingly popular in the mature markets of the US and Europe recently, but in emerging markets, it is also playing a significant part in bringing new customers to banks. Customers want to use their mobile devices for payments and bank transfers, but there is often a disconnect between what they want and what banks enable them to do.

"Financial services companies could do more with mobile solutions and contactless payment, and they need to adopt the technology fast," says Aryo Karbhawono, CEO at Arkalogic Systems.

Secure mobile transactions

Based in Indonesia, Arkalogic Systems provides secure mobile transaction solutions that enable financial institutions to provide their customers with access to their financial transaction at any time. Taking a holistic approach, it offers multidevice and cross-platform solutions that banks' customers can access through mobile handsets, tablets and personal computers.

"Contactless payment technology has been around for a decade and mobile payments have been widely used in Japan since 1998, while elsewhere people have not had the right technology," says Karbhawono.

"Indonesia has 60 million bank customers and 180 million mobile phone users."

"Financial services companies are becoming more interested in our technology, especially as mobile handset providers are putting technology like near-field communication (NFC) into their new phones. Customers are using mobile banking solutions more and they find it a huge benefit as they don't have to visit the ATM or the branch to do their banking."

Trusted by Bank Negara Indonesia, the biggest government bank in Indonesia, and many of the region's leading financial services institutions, Arkalogic bases its mobile banking, mobile payments and mobile trading solutions on a market-proven platform, enabling banks to make significant inroads into a market with huge potential.

Indonesia has only 60 million bank customers, but it also has 180 million mobile phone users, and Karbhawono expects both market to grow quickly, as it has consistently done so over the last five years.

"There is a big opportunity here for financial services institutions," he says. "Mobile solutions could, for example, be a bridge to the unbanked."

Banking benefits for all

In Indonesia, Arkalogic is making it easier for everyone involved in the mobile payments and banking arena to adopt the technology; for example, many retailers have problems with electronic data capture (EDC) or do not accept credit card payments because the system is too complicated to implement. Arkalogic can turn a mobile handset into an EDC device, allowing retailers to easily accept mobile payments.

"It is easy to do and cost-effective," says Karbhawono. "For customers, it is also easy and convenient. Our solutions also benefit banks, by bringing in more customers."

Smooth path to mobile banking

Arkalogic has built up an in-depth knowledge of the Indonesian market, which in many ways reflects the situation in other emerging economies, where the potential for mobile banking services is huge. The company has focused its efforts on providing an easy path into the mobile banking market, paving the way for innovative services.

"Arkalogic has focused its efforts on providing an easy path into the mobile banking market, paving the way for innovative services."

"Our technology is open and easy to adopt," explains Karbhawono. "It can easily adapt to legacy systems, so there is no need to upgrade core banking systems in order to use our system and start delivering mobile banking applications. It is flexible enough to connect to different trading platforms, including proprietary systems."

The fast-moving environment of mobile banking means technology companies like Arkalogic have to keep abreast of the latest trends. It also means that financial services companies need to act fast before they are overtaken.

"We are always looking at what financial services companies need and our focus now is on making transactions easier," says Karbhawono. "Most people have a mobile phone and they want to use it for everything, including buying and selling goods or services. With the NFC technology that vendors are putting into their phones, mobile banking and payments become easier for customers and retailers. The most important thing is to understand what customers want.

"Embracing mobile solutions is one of the most important things that financial services companies must do. Any bank should be serious when it comes to enhancing the services they provide to their customers. If they implement it correctly, they could greatly increase the number of customers they have."

Aryo Karbhawono is CEO of Arkalogic Systems.