Mobile corporate banking moves up the agenda

Mobile corporate banking moves up the agenda

Developing corporate mobile banking services is a major priority for financial services providers, according to a survey from Fundtech.

A survey of 267 bankers shows that 54% consider it a top or very important priority while 42% say that their customers are either extremely or very interested.

Nearly a third of respondents think mobile corporate banking will become a competitive differentiator for their bank although 38% see it becoming just another service delivery channel.

The biggest barriers to adoption of the technology are fraud and security concerns, cited by over three quarters of those quizzed.

Meanwhile, George Ravich, CMO, Fundtech, notes that while only 15% see mobile corporate banking as a revenue opportunity, the firm's recent survey with Aite Group revealed that 49% of corporate treasurers are willing to pay for such services.

"This suggests that banks may still not yet fully realise the business opportunity for mobile banking," says Ravich.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 31 March, 2011, 10:52Be the first to give this comment the thumbs up 0 likes

However high a fee corporate treasurers might be willing to pay for mobile corporate banking, it can't be more than a fraction of the fees levied by banks for providing the basic corporate banking service. By explicitly charging for mobile corporate banking, banks risk being perceived by corporates of "nickel and diming" them, which could explain the big disconnect in the views between banks and corporates around revenue opportunities present in this service. Implicit - rather than explicit - pricing of the service could work better under this situation to broaden the adoption of mobile corporate banking.