Mobile Banking Updates - July 20

Mobile payments will be mainstream in a few years, KPMG survey reveals
"More major banks and large corporates are investigating how they can use mobile payments as part of their main business strategy, a new report from KPMG has revealed, with many believing that the technology could become mainstream in the next few years. The report comes as the Commonwealth Bank announced updates to its banking app suite and hinted at a rollout of near field communication technology soon."

Banks' Best Customer May Be the Stranger Who Just Walked Out the Door, Says PwC US
"Industry analysts have estimated U.S. bank revenue to grow by five percent annually, but, according to surveys conducted by PwC US, major regulatory changes and shifts in consumer spending, saving and borrowing behavior are likely to depress revenue growth, increase operating costs, and squeeze profit margins in the retail banking sector, which accounts for one-half of U.S. bank industry revenues.

Regulatory and market-driven forces have created a perfect storm of events that banking executives say will make it more costly to compete and attract new customers. According to PwC, retail banks are on the verge of a major overhaul as they adjust their growth strategies and business models, including reevaluating the role of branches, incorporating mobile banking, payments and social media and breaking down the organizational, operational and technology barriers that have prevented them from growing organically."

Mobile banking hitting the tipping point, three studies show
"Not one, not two, but three independent studies released in the past few weeks point to the same conclusion: mobile banking has become established in the retail banking sphere.

The massive appeal of smartphones and tablets is fueling mobile banking adoption, conditioned as their users have already become to other automated banking channels, such as online banking. What’s remarkable about these three studies are the similarities noted among consumers: Convenience is perceived as mobile’s greatest attraction, while concern about security is the main thing holding people back."

Interview: Mobile banking a promising industry in Africa: experts
"Mobile banking through cell phones will provide basic financial services to millions of unbanked populations in urban and rural communities in Africa, and will become a booming industry, experts told Xinhua at the ongoing Unbanked Africa Summit on Thursday in Lagos.

Mobile banking is a way of getting banking to the rural channels where banking services can not be reachable, said Badewole Oluwafemi from Nigeria's Guaranty Trust Bank. In Nigeria, there are only 22 million individuals who have a bank account out of the 150 million population, but there are more than 80 million mobile phone users, which provides huge room for the development of mobile banking, a latest media report have said."

Wallets versus Smartphones: Mobile Banking in Canada and the Cashless Future [Infographic]
"While security remains a major concern, mobile banking is nonetheless spreading like wildfire.
It appears that convenience trumps security worries as a new report reveals Canadians are adopting banking apps on their smartphone rapidly.

Well over 2.5 million Canadians are already banking on the go, according to the report by Solutions Research Group. The Toronto-based firm, which tracks emerging technology trends, noted that number represents more than a third of smartphone users with data plans—meaning that, effectively, at least one in three eligible Canadians are accessing mobile banking."