Global banks cash in on mobile banking

BANGALORE, INDIA: Driven by the excellent opportunity provided by mobile banking to enhance existing customer services, nearly a third of the world’s largest financial organizations are planning to launch mobile banking services in the next 12 to 24 months, according to a recent survey commissioned by Sybase 365, a subsidiary of Sybase, Inc.

The survey, which was conducted by independent research company Loudhouse, pooled the views of 92 of the world’s top financial institutions (32 European banks, 30 banks in the United States and 30 banks from the Asia-Pacific region).

Results revealed that 66 percent of banks consider mobile banking an excellent opportunity to enhance existing customer service. While provision of such services is considerably advanced in European and Asia-Pacific regions compared to the US, growth is projected to be strongest in the US with 53 percent of US banks surveyed expecting to launch mobile banking services within the next 24 months.

“Key factors for financial institutions offering mobile banking are not solely commercial, such as reducing costs or generating revenue,” said Matthew Talbot, vice president, mCommerce for Sybase 365.  “Mobile banking provides unique opportunities for customer interaction and retention.”

This broadening momentum should be encouraging for the consumer respondents to Sybase 365’s 2007 mobile banking survey, 33 percent expressed a desire to deal with finances on the move. A key element in increasing adoption, which is mirrored in the 2007 consumer study, is the level of awareness that customers have of mobile banking services. It appears that banks are responding to the lack of awareness felt by consumers, with 65 percent of the banks who currently offer mobile services stating that marketing budgets and activities to raise awareness are part of their strategic plan for 2008.