M-Banking approach should change
(10 June 2008 – USA) US research has found that the approach that financial institutions are taking on mobile banking is not catering to all customers.
The research by Javelin Strategy and Research has shown that US financial institutions are discouraging take-up of mobile banking by requiring customers to sign up online and by focusing on WAP-based banking options.
Instead, they found that banks should focus on sign-up through customers’ mobile phones and by using simpler text based banking services.
Despite this, Javelin has predicted that mobile banking uptake will jump from 10 million US users in 2007 to 108 million in 2012.
The prediction, however, came with a warning that banks should change their approach.
The research found 11 percent of non-online bankers are likely to conduct mobile banking, only slightly less than the 13 percent for those who do use the Internet. This indicates lost opportunity if a bank concentrates on online sign up.
The report therefore concluded that consumers wishing to enrol in mobile banking should be allowed to sign up for the service using the device they will use to bank: their mobile phones.
The research also highlighted that while the majority of mobile banking services are WAP-based (70 percent), the majority of customers are more familiar with text messaging.
Instead, they found that banks should focus on sign-up through customers’ mobile phones and by using simpler text based banking services.
Despite this, Javelin has predicted that mobile banking uptake will jump from 10 million US users in 2007 to 108 million in 2012.
The prediction, however, came with a warning that banks should change their approach.
The research found 11 percent of non-online bankers are likely to conduct mobile banking, only slightly less than the 13 percent for those who do use the Internet. This indicates lost opportunity if a bank concentrates on online sign up.
The report therefore concluded that consumers wishing to enrol in mobile banking should be allowed to sign up for the service using the device they will use to bank: their mobile phones.
The research also highlighted that while the majority of mobile banking services are WAP-based (70 percent), the majority of customers are more familiar with text messaging.
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