Mobile Banking Updates - Aug 14

Aite Group says the race to deploy corporate mobile banking technology is on
"Despite the initial slow speed of banks to deploy corporate mobile technology, the race has now started for the top 50 US banks to plan rollout of corporate mobile banking technologies in response to a significant rise in demand from their customer base. Technology rollouts over the next year are expected to generate revenue for their institutions, demonstrating a shift in bank mindset, according to a new Impact Note, Corporate Mobile: Gaining Momentum, from Aite Group."

Redwood CU Adds Mobile RDC
"Members of the $2.2 billion Redwood Credit Union in Santa Rosa, Calif., are now being offered remote deposit checking. RCU said it is using Mitek software to add mobile RDC to its mobile banking apps for Android and Apple devices."

3 Fixes for Common Mobile Banking Performance Problems
"In their relatively new role as mobile app and mobile web developers, banks are hitting many speed bumps — glitches, 404 errors, slow response times, and crashes that drive customers to frustration and sometimes to the apps of competitors. Resolving these is important as mobile banking usage continues to rise."

Banks Explore Voice Recognition To Further Mobile Banking
"Banking sector is witnessing some of the most prolific adoption of technology to expand the scope. The latest to join the Banking world is the use of Voice Recognition. While many would speculate the use at ATMs or online banking, the technology is envisaged to simplify mobile banking ventures."

Mobile bankers feel more in control of their money
"The survey of almost 12,000 consumers across 12 European countries found that over a third (37%) of Internet users already use a mobile device for banking purposes. "Financial Empowerment in the Digital Age" also reveals, somewhat expectedly, that it is the younger generation who are taking to mobile banking in greater numbers. Among 25 to 34 year olds, half now use mobile banking."

Mobile Banking Updates - Dec 30

Mobile Banking Forecast: Smartphone and Tablet Use in the United States
"A new report from Aite Group provides financial services executives with guidance on the most important mobile banking features for investment. Based on a Q2 2012 Aite Group survey of 1,115 U.S. consumers, the report forecasts consumer mobile device use for a variety of financial transactions and activities."

First Niagara Bank Launches Mobile Banking Apps
"First Niagara Bank has released the first version of its native mobile-banking applications. Now available for download through the Apple App Store and Google Play store, First Niagara’s mobile apps allow customers to view account balances, access transaction history, transfer money between First Niagara accounts, pay bills and locate the nearest branch or ATM."

Mobile banking expected to triple from 2012 to 2016
"The future of mobile banking is strong, according to a new report from analysts at Aite Group. The Boston-based research firm said that approximately 7,000 financial institutions in the U.S. now offer mobile banking services and that more will deploy them in the years ahead, judging by growing consumer demand."

NatWest and RBS mobile banking apps falter
"NatWest and Royal Bank of Scotland (RBS) customers have been unable to access their bank accounts through their mobile phones just as consumers try to keep tabs on spending in the run-up to Christmas. Ulster Bank, business, commercial and offshore account holders also experienced problems with intermittent access to their respective mobile apps today. While service has now been restored for most customers using iPhone, Blackberry and Android phones, this incident comes just two months after NatWest had to suspend its Get Cash mobile phone application amid reports that some customers had hundreds of pounds withdrawn by fraudsters."

Mobile banking useful, not universal
"If you've seen any bank commercials lately, you'd think mobile banking is a standard feature on bank accounts these days. But while it's gaining in popularity, it's still not a given that your bank offers it. There are now around 7,000 financial institutions offering mobile banking to retail banking customers, according to an estimate in a new report by Aite Group. Considering there are about a little more than 14,000 banks, thrifts and credit unions in the country, according to data from the Federal Deposit Insurance Corp. and the National Credit Union Administration, that means about half of all financial institutions offer customers the ability to bank on their cellphones."

International Mobile Banking Updates - Jul 2

Mobile Banking: Is it a Banking Solution To The Unbanked in Africa?
"Banking the unbanked especially in African countries has for along time been a major predicament. Due to the low level of technology, illiteracy, under development, and lack of proper awareness, the banking sector has been lagging unlike others such as IT and other sectors in the industry."

Emerging economies embrace banking innovations
"When it comes to reaching the unbanked in developing countries, there's room for all players. Worldwide, the unbanked population is estimated at 2.5 billion adults, including 80 percent in Africa, 40 percent in India and 64 percent in rural China. The established means of reaching out to the unbanked in such markets is the ATM. And research indicates that over the next five years, China, India and Africa will be three of four biggest markets for deployment of new or replacement ATMs — with North America rounding out the list."

Connected consumers go where banks haven't
"iWallet, PayPal, apps may grow faster than banking innovation. The banking industry has been given a warning: beware of new competitors stealing traditional financial services via technology. Consumers with mobile devices have the potential to access financial services outside bank offerings, says Bob Hayward, a keynote speaker at the Retail Financial Services Forum in Sydney last week."

Rise of the 'Smartphonatics'
"A recent report by ACI Research and the Aite Group identified a new category of smartphones users, or “Smartphonatics”, who change their financial, payment and shopping behaviour as a result of owning a smartphone. The report is based on a survey of 4 200 consumers, in 14 countries, in the first quarter of this year. The survey was conducted in order to gain insight into the worldwide adoption patterns for mobile banking and payments."

CIBC Continues its Leadership in Mobile Financial Services with the Launch of New Text Message Alerts
"CIBC today announced it has launched powerful new text message (SMS) customer Alerts, continuing its leadership in mobile financial services. The new Alerts bring important financial information to clients at a time and place that's convenient for them through their smartphone, or through email or online banking, to help clients manage their day to day finances. The Alerts range from reminding clients about upcoming credit card payments and due dates so they don't inadvertently miss a payment, to information on future-dated bills or transfers to ensure clients have adequate balances and can avoid late payment fees. Text message Alerts to mobile devices, combined with CIBC's award-winning Mobile Banking, empowers clients to effectively and conveniently manage their finances, wherever they are."

Sungard introduces new ‘solution’ to improve banking services
"As the global financial crisis continues to take its toll on financial institutions and countries worldwide, Sungard introduces its Ambit Core Banking Solution that aims to help banks improve their management processes. Ambit Core Banking Solution “is a universal banking system that provides comprehensive instrument and product coverage for retail deposits and lending, commercial banking, trade finance, and treasury management,” Sungard said in a statement."

Kiwibank’s iPhone App Puts A Service Rep In Everyone’s Pocket
"Kiwibank has released its mobile banking app for iPhones. The app is part of a suite of online innovations pouring from the bank intended to revolutionize how people bank online. Kiwibank’s first iPhone app has been much anticipated. While most of the world’s big financial institutions have had smart phone apps deployed for months, even years, Kiwibank was among the few holdouts. But it was worth the wait."

FNB banking app hits transactions landmark
"Since launching its mobile banking application on the 20th July 2011, FNB has seen over R4 billion in transactions go through the app. This is according to Michael Jordaan, who announced the figures this afternoon (26 June 2012) via his Twitter account."

Mobile Banking Updates - Jun 24

Bank of America fights to keep top spot in mobile banking
"Bank of America Corp.’s Aditya Bhasin has 10 million reasons to celebrate the Charlotte-based company’s leading position in mobile banking. But industry analysts say the online- and mobile-banking exec also has a growing number of reasons to watch his back. That’s because an arms race is under way in mobile banking."

Mobile Banking Spend on the Rise
"Retail banks are planning to invest heavily in mobile due to increasing customer demand, according to a new report from Cambridge, Mass.-based Forrester Research. Forrester surveyed members of the Consumer Bankers Association (CBA), who reported that they will spend one-third of their total digital budget on the mobile channel this year. The joint research project with the CBA's emerging channels committee surveyed digital executives at 19 leading U.S. and Canadian banks. The findings were summarized in a two-part report, "The State Of North American Retail Banking eBusiness 2012."

Small Business and Mobile Banking: A Growing Imperative?
"Aite Group said its research finds that increasing their business with small businesses is critical to their overall success, in the opinion of 80% of American banks. Reaching a lot of them also will require including mobile banking as offerings to small and medium enterprises, the Boston-based think firm said in a new report. While not yet the preferred banking channel, Aite Group said, its research shows that currently 33% of small businesses currently bank with a mobile device. Another 31% express an interest in doing so, the research and advisory firm said, and 54% will by 2015."

Citi Adds Trade Services to Corporate Mobile Banking
"Trade Advisor is an online banking tool that lets companies conduct crossborder trade transactions, including updates on letters of credit, trade finance loans and documentary collection for import and export. CitiDirect BE Mobile, launched in August as part of Citi's Global Transaction Services, lets corporate treasurers receive alerts and authorize payments pending approvals, release payments for straight-through processing, and check balances and payment statuses, among other things."

Banks layer up on security to protect customers
"What are the odds that the head of a company that tracks financial fraud would have his own bank account breached? James Van Dyke, president of Javelin, certainly found it ironic when Wells Fargo alerted him to a fraudulent transaction six months ago. He was also glad he had signed up for a service that notifies him every time there’s a credit card transaction that occurs in his California business’s name."

Should you fear mobile banking on your cell phone?
"Do you like the ease of banking over the phone? Or do you fear something happening to your personal information? ABC 4 got the results of a recent experiment involving smart phones, and what happens when they are lost, then found by a stranger. But what can you do to protect yourself if you loose your phone? It’s happened to April Tucker a lot."

Mobile Banking Updates - Nov 22

Corporate Mobile Banking: A Look at J.P. Morgan ACCESS Mobile
"A new report from Aite Group analyzes the importance of corporate mobile banking as a critical component of any bank’s corporate-banking-technology strategy. The report highlights the current state of corporate mobile technology, and analyzes the key strengths and planned roadmap for J.P. Morgan ACCESS Mobile."

U.S. Bank Customers Get Mobile Banking Upgrade
"U.S. Bank recently released a new mobile banking application that significantly upgrades the mobile banking experience for all customers. The upgrade offers improved features and customer experience for iPhone, Android and BlackBerry. The new app, available in app stores now, begins a series of upgrades planned for U.S. Bank mobile banking over the next several months."

6 Ways To Make Mobile Banking Work For You
"Banking via mobile phones has skyrocketed in recent years, says Mary Monahan, executive vice president and research director for mobile at Javelin Strategy and Research in Pleasanton, Calif. A Javelin report released in October found that in the preceding 12 months, the percentage of mobile phone users conducting banking rose from 19 percent to 30 percent."

Mobile Tech and Advisors, Part 1: Its Place in the Business
"In a June 2011 report, the Yankee Group predicted that there will be 500 million mobile-banking users globally in less than four years. And while it is true that some people may never choose to bank or manage their investments using their mobile phones due to security, privacy or technology concerns, within a few years these people will be a small minority."

Global Online Money Transfer Company, Xoom, Launches Mobile Optimized Site to Reach Users on the Go
"Xoom.com, the fastest growing online money transfer company, today announced the launch of its fully optimized mobile site that enables users to send money worldwide, right from their mobile device."

Mobile Banking Updates - May 12

The Impact of Mobile Banking: A Case for Mobile Marketing
"A new report from Aite Group provides insight into the behaviors of mobile banking users. Based on a December 2010 Aite Group survey of 1,011 U.S. consumers, the report explains why specific consumer behaviors are important to financial institutions’ mobile banking and mobile marketing strategies."

A Strong Cell
"Innovation's true power can appear as a subtle revelation, unveiling itself in something as benign as a line of data on a usage report.

'Two of our biggest days within the first few months of offering corporate mobile banking were the day after Thanksgiving and New Years Day. And they were the two biggest days for usage of wires and wire approvals,' says Don Jenkins, vp and senior product manger at PNC, which offers both retail and corporate mobile banking, which launched last fall. 'The offices weren't even open, and people were away and still able to get business done. That proves the point right there.'"

Citibank Ups Digital Engagement with Online Initiatives
"Tracey Weber joined Citi in October 2010 to oversee internet and mobile operations at Citibank North America. Weber spoke to eMarketer’s Lauren McKay about new developments at Citibank—from its @AskCiti Twitter account to its mobile banking efforts."

Tablets' Sweet Spot: Sales
"A hint of a lightweight laptop with a dashof a really big handset, tablets are still retail banking use-case nomads, in search of the best ways to get consumers excited and curious. Wherever the new devices are finding a comfort zone, in places such as sales and investing, tablets like Apple's iPads and RIM's Playbook are proving to be just as un-encumbered as their smartphone cousins."

Prepaid Card Follow Up - Aite

"Prepaid Debit Cards: A Credible Alternative to Checking Accounts
A new report from Aite Group, LLC argues that prepaid debit cards represent a competitive threat to banks' checking account relationships. It also provides insights into how banks, prepaid debit card providers, payday lenders and other parties can take advantage of prepaid debit cards."

Aite: Usage Trends in Online and Mobile Banking

"A new report from Aite Group, LLC reviews consumer adoption trends for key online and mobile banking services over the next two years. It reveals that large U.S. financial institutions expect mobile bill payment, expedited bill payment and online personal finance management tools to be the fastest growing electronic banking services." Click to Learn More >>

Mobile Banking Research and Data

The last two weeks have produced numerous articles and announcements supporting the theory that mobile banking is truly in demand and is growing at a rapid pace. Specifically, we have seen:

Juniper Research forecasts over 800 million to do mobile banking by 2011
"A new report by Juniper Research into the mobile financial services sector has found that the number of consumers accessing banking services and products via their mobile phones will reach 816 million by 2011, a tenfold increase on the number using such services in 2007...According to the report, the annual number of global mobile banking transactions will rise from 2.7 billion in 2007 to 37 billion by 2011, as a greater number of services are deployed worldwide."

Online Banking Is Old News. Hello Mobile!
"More than 100 million US consumers will use their mobile phones for banking services by 2012, according to Javelin Strategy and Research data cited in an April 2008 BusinessWeek article."

"In an even more specific prediction, TowerGroup said in its "US Mobile Banking Forecast 2007-2012" report that nearly 41 million US consumers will conduct some banking activity by mobile phone at least every 90 days by 2012."

Mobile banking gaining traction among younger customers
"The study found that 21 percent of consumers age 18-34 use their cell phone for mobile banking transactions, compared to about 10 percent of the general population."

"Research firm Aite Group predicts that mobile banking users in the United States, having ballooned from a negligible number at the end of 2006 to 1.7 million by the end of last year, will rise to 8 million by the end of this year. And by 2010, Aite Group forecasts that 35 million Americans will be mobile banking users."

Mobile Payments Research

There are two new research reports on the market covering the topic of mobile payments.



The report from the Aite Group is titled “Contactless Payments and NFC in the United States: Beyond Science Fiction.” Included in the description of the report is the following quote: "It is widely accepted that a strategy of proliferation, even at a loss, is key to gaining traction for contactless payments," says Nick Holland, senior analyst with Aite Group and author of this report. "A solution would be for card networks and issuers to provide a contactless-specific category of interchange and fees for merchants. Once uptake levels have reached critical mass and contactless payments are entrenched, fee structure can be altered to afford networks and issuers greater opportunity for revenue generation." Read the full press release >>


The second report is from InStat and is titled “Cellphone Banking First Step toward Mobile Wallets in the U.S.” The InStat press release states that, “There is evidence that the U.S. market may overcome a crucial issue—technology incompatibility—and make progress during 2008 toward contactless payments using cellphones,” says David Chamberlain, In-Stat analyst. “Companies in several different sectors all ultimately want to deploy near field communications (NFC), the key enabling technology, into handsets as well as in merchant payment terminals.” Read the full press release >>

Aite - Mobile Banking Round-table Discussion

Mustafa Patni and Michael Lindsey


Left to Right: Joram, Matt, Nick, Brandon, and Mustafa

Just a few short hours ago I returned from New York where I attended a round-table discussion on mobile banking. Let me first thank the entire team at Aite. In two short hours we covered a variety of topics including:

* Is the term mobile banking tainted from the failed attempt in 2001?
* Who will ultimately own the clients - banks or carriers?
* What will be the role of mobile banking for the un-banked or under-banked?
* Does mobile banking have a business purpose or is it just keeping up with the Jones's?
* What kind of fraud or security attacks can we expect and how do we handle them?
* Where will mobile banking take us by 2010? Will mobile payments be a factor?

Overall, the discussion was outstanding and there was a strong turn-out with over 80 people in attendance representing banks, vendors, trade publications and press. I'd also like to take a minute to thank my fellow panelists:

* Nick Holland - Aite Group
* Mustafa Patni - Washington Mutual
* Joram Borenstein - RSA
* Michael Lindsey - Bancorp South
* Matt Dill - Western Union

If you are looking for a fresh opinion from an industry expert these five are as sharp as they come.

Now, this obviously does not summarize the full content and depth of the morning, but a few "big picture" notes would be:
* We (banks and carriers) will not decide who owns the client. The market will evolve and they will dictate to us who's in control by voting with their dollars.
* Do not ignore the un-banked and under-banked. They represent a very large target segment with big potential.
* Mobile banking does have inherent value. By adding another service to the relationship the client is less likely to defect.
* As always security is paramount. The keys will be customer education and a "mobile guarantee"
* Mobile payments will be a thriving and profitable industry but be patient.

Mobile Banking Roundtable and Google Phone

If your schedule permits, there's an interesting roundtable discussion that I'll be participating in next week. The event is on Thursday November 8th in New York and is sponsored by Aite. The panel will include representatives from Washington Mutual, Bancorp South, Western Union, and RSA.


On a separate note, it sounds like we're getting closer to the release of the Google phone. Will the iPhone have its first true competition? Click to read the full story.