Mobile Banking is on the Move

According to the January 2009 Online Banking Report, a projected 7.5 million households, which represents about six percent of total U.S. households, are expected to use some form of mobile banking by the end of 2009. By the end of 2010, 108 million consumers are expected to use mobile banking for functions such as receiving mobile financial alerts, monitoring account balances, viewing statements and transferring funds between accounts. Consumer use of mobile financial services is projected to one day surpass the numbers of those accessing online banking services through Internet-connected computers. What does this mean for your bank?

Mobile banking provides a new way for banks to communicate and interact with their customers. One of the biggest drivers for adoption of mobile banking is the sophistication of the devices that consumers use. A recent study from comScore, Inc. stated that the increasing adoption of Smartphones and rapid development of mobile applications, AKA apps, has created a fertile environment for the acceleration of mobile banking. Even though the device is a key factor, age cannot be ignored. According to a U.S. Mobile Banking survey, 50 percent of Generation Y respondents, AKA the Mobile Generation, indicated that mobile banking would be somewhat important to very important in choosing a financial institution. Even though Generation Y does not bring a lot of revenue to banks quite yet, they will one day soon. By 2018, Generation Y will represent 28 percent of the U.S. population and earn $3.39 trillion in income according to Javelin Strategy & Research.

On Friday, July 31^st 2009, the 1,000^th iPhone finance application was added to the Apple App store. These 1,000+ applications are just the beginning for the finance category. Mobile technology is advancing every day. According to NetBanker, the number of applications over the next few years will likely grow to well over 10,000 as more banks and credit unions develop apps of their own.

Even though mobile technology is advancing every day, the United States and Europe remain several years behind many parts of the world when it comes to implementation of mobile banking and mobile technologies. In Japan, for example, 40+ million active handsets are capable of making payments at the point of sale. Imagine going to a grocery store and paying via your mobile device. In the near future, the U.S. mobile device will gradually morph into a payment device used for both remote and direct point of sale payments.

Mobile banking is and will continue to evolve into so much more than just accessing online banking via a mobile device. People are now downloading applications that allow them to make transfers between accounts without visiting a Web site, signing up for SMS alerts to notify them when they have a low balance, depositing checks, and much more. Banks need to view mobile banking as part of their overall marketing strategy and select a mobile solution that works best with their core system.

When selecting a mobile financial service solution, we recommend that you follow the following criteria:

• A solution that offers easy enrollment for your current and potential customers. Mobile banking is becoming popular because it is the epitome of convenient banking. We like to call it, being present at the “Moment of Relevance.” Signing up for the service should be a convenient and painless process for your customers as well.


• A solution that has the ability to develop Wireless Application Protocal (WAP) browsers, Short Message Service (SMS) alerts, and applications for Smartphones. So many solutions only offer one or the other. Mobile banking has many elements and should encompass all three mentioned. The main use of WAP browsers is to enable access to the Web via a mobile device. A WAP browser also allows for easy readability of the site’s content on the smaller mobile screen. SMS allows for the interchange of short text messages between mobile devices. For example, SMS alerts (text alerts) can be utilized for balance levels and/or statement availability. Apps used on Smartphones refer to useful software that can enhance the experience visitors have with their bank’s services via their mobile device. To access the app, the visitor would have to download it to their Smartphone device. The application would then allow the visitor to check account balances, transfer funds, make deposits, locate an ATM, etc.—all directly from their mobile device.


• A solution that offers seamless integration with your core system. Your core system might offer a mobile financial service of its own.


• A flexible and modifiable solution with comprehensive functionality. New features will be developed year after year. The mobile solution you choose should be adaptable to technology advancements as they are made.


• A secure solution. Your customers have to know that their information is secure, especially when making transfers and deposits via their mobile device.

Mobile banking is on the verge of exploding as consumers increasingly regard their mobile device as a single solution for communication and everyday needs. Convenience is key in today’s society. Consumers want what they want, when they want it. Mobile banking provides banking options at the moment of relevance. Now is the time to take advantage of this imminent service and embrace the opportunities that mobile banking has to offer. After all, isn’t being top of mind always the goal? What better way to remain top of mind, convenient and relevant than by providing helpful services via a channel that almost every U.S. consumer uses on a day-to-day basis.