The number of mobile phone subscribers that use their phones for mobile banking transactions will exceed 150m globally by 2011, according to a new study by Juniper Research. The figures refer to additive banking which is focused on developed markets rather than transformational banking, which is focussed on extending banking services to customers who cannot be reached profitably with traditional branch-based financial services
The Juniper Research report is said to have established that the mobile banking market is currently most advanced in the Far East, but that growing numbers of mobile banking services are being offered in North America and Western Europe. The developed nations of the Far East, North America and Western Europe are forecast to account for over 70% of the user base by 2011.
Mobile Banking report author Howard Wilcox commented: "Transactional or "push" mobile banking is being offered increasingly by banks via downloadable applications or the mobile web, complementing existing SMS messaging services for balance and simple information enquiries. Mobile banking is a key element in banks' distribution channel strategies as they compete to attract and retain customers."
The Juniper report highlighted the extra user convenience as a key benefit. The mobile phone is the device that people – especially Generation Y – will not leave home without. Mobile banking is an addition to the wide choice of applications and services that they can access through their handsets to make life easier, especially via smart phones such as the iPhone.
However the report identified several factors that will need addressing to really foster market development including financial regulations which vary from country to country, application slickness, and security. Whatever the reality of the strength of the security, it is the perception and image in the mind of the user that dictates whether they will trust the service, says Juniper.
The study is said to provide an analysis of the trends and issues affecting this market, exploring how the mobile banking market will develop. The report provides forecasts of user take-up, user-level messaging traffic, user-level transaction volumes and gross transaction values for "Push" Mobile Banking Information Services, and "Pull" transactional banking services. The report also presents the strategies of 15 key vendors and 12 mobile banking services in the developing market.