Limited Consumer Interest in Mobile Banking

JupiterResearch says that despite renewed efforts on the part of financial institutions, overall interest in mobile banking services is limited. The company says that just eight percent of online consumers who own a cell phone are interested in using mobile browsing to check account balances.

In a new report, JupiterResearch advises that major US banks, which are working to expand mobile banking offerings, should experiment with services that leverage the mobile channel's characteristics to respond to the needs of three key consumers segments.

"The current buzz around mobile banking is fueled by financial institutions' desire to expand their customer relationships to the mobile channel rather than consumer demand," said Asaf Buchner, Analyst at JupiterResearch. "Banks have to identify potential early adopters and educate these customers about the value of mobile services."

According to the study, when developing mobile strategies, banks should consider the availability of mobile technologies (SMS, mobile browsing and client application) as well as the characteristics of mobile interactions.

"Banks should not offer mobile services that aim to mirror or duplicate the online experience," said David Schatsky, President of JupiterResearch. "Online banking brought consumers the convenience of banking anytime. Mobile banking can add an anywhere element, but banks should identify where such ubiquity is crucial."

The study identified younger consumers as potential early adopters of the services. Other interested demographics include consumers who are already using mobile browsing as well as ?under-banked? consumers who might even not be banking online. "

Posted to the site on 23rd April 2007