M-banking to Surpass Internet Banking in 2012

Brazilian federal bank Banco do Brasil (BB) expects its mobile banking operation to surpass its internet banking service by 2012, Banco do Brasil executive manager of electronic banking Raul Moreira told BNamericas.

"Banco do Brasil's online banking service is currently used by 30% of customers and we expect mobile banking to overtake it in six years as Brazil has great potential with around 100 million mobile phone users," Moreira said.

The seven-year mobile banking project is split into three parts: general banking, customer relationships such as sending SMS to customers, and mobile payments, according to Moreira.

Banco do Brasil aims to reach 1 million users for its mobile banking services in 2007 in Brazil and Japan, he said.

The m-banking project started in 2006 and now has 340,000 users in Brazil, plus some 300,000 in Japan.

Uptake has been faster in Japan, where there is a culture of mobile banking and using phones to make payments, according to the executive.

"We aim to encourage the culture of mobile banking in Brazil...We will launch a marketing campaign this year," Moreira said.

Banco do Brasil also intends to create partnerships with companies to establish the use of mobile phones as credit cards, he said.

With 80% of Brazilian mobile phone users being prepaid, the company is also targeting these users.

"Twenty-three percent of our 2,000 transactions a month [via m-banking] come from prepaid phone users," Moreira said.

Banco do Brasil has agreements with all of Brazil's mobile operators, he said."

Posted to the site on 15th January 2007