Mobile Banking Positioned For Rapid Growth

There is significant enthusiasm for mobile banking services among consumers worldwide, says a recent research released by Sybase 365, a subsidiary of Sybase, Inc. Surveys conducted in the Americas, Europe and Asia-Pacific regions showed a burgeoning demand for mobile banking among users, though this is tempered by concerns about security and lack of awareness.

Europe appears most eager to take advantage of mobile banking, with 61% of mobile users interested in mobile services if offered by their bank. This compares to 40% in Asia-Pacific, and 37% of those surveyed in the Americas (including Argentina, Brazil, Canada, Mexico and the US), who would like to be able to interact with their bank via a mobile device. In fact, in each of the regions surveyed, more than a quarter of respondents would consider switching banks if an alternative provider offered them free mobile banking.

While the study points to a strong interest in mobile banking, it also reveals that mobile banking is still in its infancy around the globe. The study also reveals that there is a disparity between the demand for mobile banking services and the availability of services.

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Security is often seen as major barrier to the adoption of mobile banking, with 47% of respondents in Asia-Pacific and 44% in the America citing security as a concern. European consumers show the least concern over the security of mobile banking, with only 25% of respondents citing it as a reason for not using mobile banking services. “Consumer adoption of mobile services is positioned for rapid growth once financial institutions realise the perceived value and hidden demand for these services,” said Raj Nathan, CMO, Sybase.

Mobile banking is an opportunity for banks to offer a value-added service as an incentive for new customer acquisition and customer retention. However study reveals that financial organisations are not adequately and effectively promoting mobile baking among customers which may result in lost opportunity. “Banks need to more actively promote mobile banking services by highlighting the benefits to their customers. As demonstrated in this survey, there are a number of consumers likely to welcome another tool to support their financial fastidiousness in a more immediate and flexible manner than the Internet can afford,” said Nathan.