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Broadband & Mobile Featured Article
April 23, 2007
Consumers Nixing Mobile Banking, Says Study
By Spencer D. Chin TMCnet Web Editor
Although U.S. financial institutions are making a concerted effort to generate interest in mobile banking services, online consumers have so far given a lukewarm reception to the concept, according to a study by JupiterResearch.
In a report titled, “Mobile Banking: Assessing Servicing Opportunities via Cell Phones,” JupiterResearch advises that major U.S. 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, a JupiterResearch analyst, in statement. “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.”
Financial institutions have in recent months forged alliances with mobile service providers to offer mobile online banking. Elan Financial Services teamed with Sapphire Mobile Systems, while Firethorn Holdings, LLC allied with Cingular (News - Alert) to provide mobile banking for Cingular Wireless customers.
Online security could be a stumbling block. A recent survey by Javelin Security and Research found consumers concerned about loss of personal information and calling for more substantive online security procedures, even at a loss of convenience.
Jupiter’s survey said one key market for mobile banking could be younger consumers, with mobile browsers another possible source.
The report can be viewed on the Jupiter’s website.
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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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