A new study from IDC Financial Insights has found that “while current economic conditions may have curtailed both consumers’ demand for mobile banking and banks’ willingness to invest in it in the short term, things are still moving forward”.
The study presents the results of a survey of 14 US mobile banking solution providers with the objective to get a better understanding of who the key players are in mobile banking, what products and features they offer, and an overall look at industry trends.
‘This is the time for banks to invest in their strategies for mobile banking or risk playing rapid catch up once usage does take off,’ comments Marc DeCastro, research manager, Consumer Banking and Credit/Community Banking, IDC Financial Insights. ‘Mobile banking for retail customers will become a staple no different than online banking. Just like online banking, the justification for offering a mobile solution will be based on customer retention and cost reduction. The convergence of technologies into the mobile phone will continue to attract customers to the technology, and banks will need to offer a solution.’
IDC Financial Insights believes that payments might just be the “killer” application that propels mobile banking as mainstream. Social networking, while no doubt exploding in popularity, can also be a driver to more success in the future for mobile banking. In addition, the global economic recovery, which some economists believe has already begun, will likely help kick-start sales of mobile devices and data plans.
Therefore, IDC Financial Insights recommends banks take a more strategic look at mobile banking rather than view it as simply an extension of online banking and bill payment. This includes reviewing the available platforms, listening to the suppliers, and listening to customers before making the investment. Despite the rocky start, mobile banking will be an important channel for retail customers.
The following are among the key findings presented in this study: