Mobile Banking Gets a Boost with the Ubiquity of Smart Phones

The present era of iPhones and BlackBerries is taking mobile banking to a whole new level. And why not? With online banking services fast-growing in demand, mobile banking can’t be far off. The advent of smart phones has only served to facilitate its incorporation into the fast-paced lifestyles of the Generation Y banking consumers.

The facts and figures, as technology research firm ABI Research reports, are all pointing to this inevitable trend:

• From an estimated 400,000 mobile banking users in 2007, the number of users soared to a staggering 3.1 million in 2008.

• This figured is expected to reach 7 million this year (more than double the past year’s).

• Banks offering mobile banking services will also grow dramatically from 245 in 2008, to about 614 in 2009.

• By 2010, it is estimated that 35% of online banking households will be using mobile banking as well, and by 2013, there could be about 32 million mobile banking users.

Banks Leading in Mobile Banking Services

Leading the group of banks which are out to revolutionize mobile banking services is Bank of America, which currently boasts of about 1.9 million mobile banking clients after introducing a new mobile banking application in 2007. In fact, its downloadable mobile banking tool is listed as the top free financial application in the Apple online store.

Wells Fargo is also another frontrunner in the mobile banking services field. While the banks initial foray into mobile banking was cut short in 2002 with just 2,500 users signing up, it launched Wells Fargo Mobile in 2007, a browser-based mobile banking service. Wells Fargo is also credited to be the first bank to offer mobile banking services for businesses with CEO Mobile.

Not to be outdone, Citibank introduced its own iPhone app just very recently, the Citi Mobile. This application is now available for free download at the App Store under the finance category and is expected to rise to the top of the most popular downloads list as bank customers try it out.

Other big US consumer banks which have a dedicated iPhone mobile application available in the Apple App Store are Chase and PNC Bank.

Smart Phones, Smart Banking

A good 40% of Bank of America’s mobile banking clients are those using iPhones, although applications for BlackBerry devices and Google’s G-1 mobile phones are also available.  What attracts more smartphone-touting customers to avail of mobile banking services through these devices is the simple fact that smart phones are more convenient to use with their larger screens, touch-screen technology, and generally, more appealing user interfaces.

As of this time though, many of the transactions available through mobile banking are relatively standard such as balance inquiries, funds transfers, and bills payments. In fact, many mobile banking customers are still wary of utilizing their phones for doing transfers and payments for security reasons, and are simply using the service primarily to check their account balances or verify if a check has cleared.

In the not too distant future however, mobile application developers see a future for smart phones being used for mobile commerce, providing more growth opportunities for banks.

Checkbook out, Mobile banking in?

No, it’s not quite time to put our good old checkbooks in the bottom drawer and throw away the key. While mobile banking is set to take off in a big way, it cannot yet quite replace the range of services available in traditional banking and online banking.

What it does though (other than putting more applications on iPhones and BlackBerry mobiles), is to make consumers aware that there is still so much room for the banking industry to grow and make managing one’s accounts a more pleasant and hassle-free experience.