Report: Mobile banking set for growth

A new report from IMS Research says the time is right for banking, money transfers and online payments to move to a mobile environment.
The combination of better coverage and higher uptake of feature phones and smartphones, along with greater penetration and service availability is combining to make it an ideal time for banking services to go mobile, said the report. In addition, there is growing demand for mobile banking services from consumers, operators and financial stakeholders, said IMS.
“There has been a marked increase in the level of activity of key players in the market from both the mobile and the financial companies in the past 12 months,” said John Devlin, lead analyst for the report. “In regions such as North America, Japan and South Korea strong partnerships are being formed between mobile operators and banks.
“In regions where banking infrastructure is much more limited in availability, battle lines are being drawn between the different stakeholders, with operators well positioned and less restricted in providing financial services to their subscribers”.
The report predicts cellular subscribers will grow 32% during the next four years, while mobile banking and payment services will grow by 662% during the same period.
Barriers to adoption of mobile baking services include security and competition from other technologies.