A new report jointly conducted by McKinsey & Company and Efma shows that interest in mobile banking is intense and getting stronger, with many users already actively shifting from PCs to mobile devices even in their homes.
Mobile has the potential to revolutionize the customer experience in personal financial services, and although banks across Europe are mobilizing to respond to the growing mobile opportunity, non-banking organizations are leading the mobile revolution.
‘This research suggests that, taking the industry as a whole, the upside from mobile banking will be limited and value creation may be neutral at best. However, at the level of individual banks, the profit and revenue opportunities are considerable,’ comments Radboud Vlaar, Partner at McKinsey.
‘Although the experience of many banks has been that the mobile channel is an extra cost rather than a cost reduction opportunity, innovation plays a vital role in the retention of existing customers. Those players who under-invest in mobile technology may see a large proportion of their market share captured by a rival.’
Currently non-banking organizations frequently lead the way in this field with many often free applications that facilitate a range of new payment options, including cross-border remittances and peer-to-peer payments.
Other findings of the report include: