Corporate Mobile Banking: Revolutionizing Cash Management

by Jacob Jegher, December 22, 2011
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

The corporate mobile banking market has matured quite a bit, and a slew of new devices, cheaper data plans, and faster networks are upon us. Business mobile users have the opportunity to take advantage of rich and powerful mobile banking services, provided their bank has an offering.

Mobile mania is upon us. From smartphones to tablets, mobile devices are being marketed, sold, and enjoyed by people all over the world. The business user is no exception. In fact, business users were some of the first to take advantage of mobile technology as they embraced the capabilities of the Blackberry.

According to a new report from Celent, Corporate Mobile Banking: Revolutionizing Cash Management, as mobile solutions and devices have matured, financial institutions have come to some realizations: not all business users are destined to be mobile banking users; and business customers deserve increasing emphasis, particularly in an unprofitable retail banking climate. Banks learned a tremendous amount from their retail mobile initiatives and can apply the lessons; bank-led corporate mobile initiatives extend to enabling B2B payments initiatives and providing the rails for consumer mobile payments.

One of the greatest concerns is security. This is especially relevant if transaction initiation is enabled for the mobile user. For now, corporate mobile banking appears to be safe. That doesn’t mean it’s going to continue to be safe, and financial institutions and corporations cannot rely on their experience. Celent believes that mobile fraud attempts are going to explode. It’s not a question of if, it’s a question of when, who (who will be targeted), and how. This all points to banks taking a broader view on security that is both cross-channel and multIlayered. New forms of authentication have the potential to oust the trusty token.

“Celent recommends that banks determine how they can take advantage of corporate mobile solutions,” says Jacob Jegher, Senior Analyst with Celent’s Banking group and author of the report. “Banks that ignore the mobile channel will simply fall behind. Mobile isn’t a ‘nice to have,’ it’s a fundamental mainstream channel.”

This report examines and analyzes the state of corporate mobile banking. It delves into why mobile banking is important in the cash management space and explains some of the adoption hurdles. It then explores security challenges, the role of the tablet, and the convergence of online and mobile solutions. Finally, the report provides insight regarding corporate mobile banking functionality and how financial institutions should go about deploying solutions.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Why Mobile, Why Now?

5

Is Corporate Mobile Banking Safe?

12

 

It’s Time to Overhaul Multifactor Authentication

12

 

BYOD Is a Misnomer

14

The Convergence of Online and Mobile

16

 

Online Banking Must Be Device-Agnostic While Providing a Tailored Experience

16

 

The Tablet Will Act as a Catalyst

18

Corporate Mobile Solutions and Capabilities

20

Conclusion

24

Leveraging Celent’s Expertise

25

 

Support for Financial Institutions

25

 

Support for Vendors

25

Related Celent Research

26

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