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2011: The year for mobile banking

Research published recently by Forrester shows that mobile banking provision in Europe is gathering pace. This refers to all three of the main mobile banking services – mobile web, mobile app and text-based services.

According to its analysis, of the European banks offering mobile banking services:

• 76% offer SMS alerts
• 67% offer mobile banking web sites
• 64% offer iPhone apps

However, despite the fact that financial institutions have been making forays into mobile services for a number of years, there is still a relatively low consumer adoption. Forrester estimates that consumer adoption averages approximately six per cent in Europe, with Italy leading the pack at more than 10 per cent. Six per cent of UK consumers currently use mobile banking.

So, do we anticipate this changing in 2011?

The short answer is yes. As we approach the New Year, financial institutions will need to continue to focus on programmes to restore their brand image and reputation and mobile will have an important role to play.

Forrester cites continued market fragmentation as a key barrier next year but banks cannot let aspects such as device standardisation to stall their mobile strategy. The unprecedented growth in mobile represents a significant revenue opportunity as well as a channel for service-based differentiation to rebuild customer goodwill. By 2014, Forrester forecasts that 39 per cent of consumers will access mobile web at least once per month, opening a much greater market for mobile banking adoption.

Offering customers greater functionality and empowering them to choose how and when they interact with their bank will be crucial to financial institutions improving their image in 2011, particularly with the lucrative Generation Y. However, while mobile represents one piece of the puzzle; banks should look to improve customer service across all channels to fully convince customers to trust them again.  Willing banks must now step forward.

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Comments: (2)

Bo Harald
Bo Harald - Transmeri, Demos, Real Time Economy Program,MyData - Helsinki Region 03 January, 2011, 14:53Be the first to give this comment the thumbs up 0 likes

Agree that 2011 will be an important year - but see the breakthrough coming from a somewhat unexpected angle - the notification services becoming bidirectional - get notification about e-invoice and approve for payment by pressing "a" - both for private and SME customers. This will then proceed to other proposals and with real time payments become an alternative also for merchants (merger of e-commerce payments and e-invoicing - automating accounting on both sides..)

A Finextra member
A Finextra member 04 January, 2011, 14:00Be the first to give this comment the thumbs up 0 likes

It’s becoming apparent that increasing adoption and innovation is causing every year to be the ”Year of Mobile” and 2011 will be no exception.

Likely this year we will see a bit more of location aware marketing, maybe a bit of a collaboration between retailers and banks or card providers where the card provider could alert its customer about the best deal around the corner? And hopefully a bit more of NFC? I'm still waiting to swipe my phone over that terminal! It will be an interesting year for HTML5 as well. Will it render apps obsolete, I wonder.

2011 will be the Year of the Rabbit as well. Amongst others, the rabbit is a symbol for elegance and worship of beauty. Now, that sounds like Apple, right? So I guess you're on the right track here, James!