Mobile banking expected to soar in next few years
Rise of smartphones, user needs expected to fuel growth
Computerworld - The number of people actively using mobile banking in the U.S. will grow by more than five times by the end of 2013, Tower Group Inc. predicted in a report released yesterday.
In fact, that number is expected to double this year alone to 10 million users, up from 4.9 million users in 2008. In 2013, 53.1 million users will be banking with their smartphones and other devices, more than five times the number likely to do so this year, the analyst group said.
Several banks have up to 10% of their online banking customers using the mobile banking capability, while one unnamed bank told Tower that 25% of its online users are also doing mobile banking. Earlier this year, Tower said, Bank of America said it had nearly two million mobile banking customers, twice the number it had nine months earlier.
Tower analyst Charul Vyas said that the popularity of smartphones, particularly the Apple Inc. iPhone, has helped the growth in mobile banking. Bank of America mobile banking was one of the very first applications available on the first generation iPhone.
According to Vyas, the number of banks rolling out mobile banking efforts increases by hundreds of banks each month, and now includes small and medium-sized banks who learned from pilot programs of larger banks.
The recession has prompted consumers to more carefully manage their finances, and Vyas said that instant access to financial information -- coupled with the ability to quickly move funds over a mobile device -- can help. "Mobile is the only channel that provides this level of immediacy," Vyas said.
Another finding of the report is that mobile phone use is high across all demographic and socioeconomic groups, unlike desktop Internet use. That means that mobile banking technology can draw in new "unbanked" customers.
Read more about Mobile/Wireless in Computerworld's Mobile/Wireless Topic Center.
- Assessing ROI for Mobile Acceleration Clients This EMA® paper examines the business case for deploying mobile WAN optimization client software and builds a ROI model based on the experiences...
- The Apple-ization of the Enterprise: Understanding IT's New World Read this paper for how to tackle Apple-ization (and the related consumerization of IT and Bring Your Own Device/BYOD).
- A Practical Introduction to Enterprise Mobility Management Read the white paper to better understand the basic concepts within mobility management and to learn how you can apply EMM technology to...
- Enterprise Mobility: A Checklist for Secure Containerization The advantages and disadvantages of the multiple approaches to containerization. Learn More>>
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the... All Mobile/Wireless White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!