SAN FRANCISCO - In a series of three new reports, Javelin Strategy & Research explores product-marketing requirements for building banks' consumer usage of mobile-banking services.
While consumers are better primed for mobile banking now than they were in 2000, Javelin says financial institutions should not consider the mere availability of mobile banking a guarantee for success. FIs should prepare for measured, rather than widespread and immediate adoption, even though consumers, handsets and mobile networks have made tremendous advancements.
According to Javelin's new research, mobile banking and payments will grow as banks design products based on consumers' mobile needs for simplicity and immediacy while educating endusers to curtail perceived risk factors.
Early adopters are expected to be current mobile Internet users, representing 12 percent of U.S. adults who own cell phones (approximately 27.8 million people). In order to appeal to market, FIs need to first focus on mobile preferences. FIs must also evaluate the tradeoffs of multiple platforms (downloadable applications, SMS, browser-based applications, etc.) in order to garner adoption beyond the mobile Internet users and reach other segments, such as Gen Y.
On the other side of the mobile-banking adoption equation are perceived security vulnerabilities. Of the more than 2,200 online consumers who were surveyed for the reports, 49 percent perceive mobile banking to be unsafe, according to Javelin. Yet analytical data show that the channel offers security advantages and minimized risks compared to online banking. FIs must proactively address the perceived security flaws while touting the relative safety advantages.
Javelin says the industry should collaborate for security requirements among carriers like AT&T, Cingular, Sprint, T-Mobile and Verizon.
