San Francisco, CA, USA
May 17, 2007US Mobile Banking:
Beyond the Buzz
Report Published by Celent
Mobile banking will be a
significant financial services channel that will be used by 35% of online
banking households by 2010.
The relevance of mobile banking and the
likelihood of its success have been in question. But mobile banking is
here to stay and will grow significantly faster than online banking,
according to a new report from Celent, US Mobile Banking: Beyond the
Buzz. By 2010, 35% of online banking households will be using mobile
banking, up from less than 1% today. New functionalities will make mobile
banking distinct from online banking and attract users. For instance,
mobile banking will eventually allow users to make payments at the
physical point of sale. These “mobile contactless payments” will make
up 10% of the contactless market by 2010.
Mobile banking initiatives are of
particular interest to 18- to 25-year-olds, also known as Generation Y.
They will gravitate to mobile banking faster than the general population.
According to the report, 40% of Generation Y indicate that mobile
financial services will be a factor in their choice of bank. Five years
from now, a significant percentage of this demographic will be in
cell-phone only households, retrieving information and conductions
transactions from their handheld devices frequently.
Celent estimates that by 2010, upwards of
70% of bank center call volume will come from mobile phones. Half of those
calls will be related to basic balance inquiry information. This
information will be readily available on a phone and will take less time
than a phone call. A customer service inquiry via mobile banking (as
opposed to a call center) will cost less and be an impetus for banks to
embrace this new channel. Mobile subscribers of data services will cut
across income levels, age, and ethnicity and are very good leading
indicators of mobile content usage, including mobile financial
services.
"The mobile banking end game will not
be about checking balances and paying bills. It will evolve into a mobile
wallet, allowing banks to generate greater electronic payment volume
through the combination of electronic loyalty programs, mobile marketing,
and contactless payments," says Dan
Schatt, author of the report and senior analyst at Celent. “While
loyalty and marketing applications are still largely confined to product
roadmaps, they will make their debut in late 2008, and by 2010 we will see
the fusion of mobile banking and mobile contactless payments.” 
The 38-page report has 16
figures and six tables. A table of contents
is available online.
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