Financial services technology solutions provider Fiserv Inc. this week released the survey results of 2012 mobile banking and payment plans of top-tier financial institutions. Transactional services such as remote deposit capture and mobile person-to-person payments will account for the bulk of mobile investment in 2012.

The survey, conducted by Forrester Consulting on behalf of Fiserv in September 2011, evaluated the plans of 10 banks and credit unions that in total hold more than one-third of all U.S. deposit accounts. The results revealed that these FIs are moving beyond the basics to deliver increasingly sophisticated mobile capabilities.

"After several years of technology-driven expectations, mobile banking is finally seeing sustained traction in the U.S., and banks have rolled out support broad enough to enable consumers with nearly any mobile device to access basic banking functionality," writes co-author Brad Strothkamp, VP, principal analyst, eBusiness and Channel Strategy, Forrester Research Inc., in the May 2011 independent report, The State of US Mobile Banking: 2011.

"As consumers gain confidence with the channel, their needs are shifting from simple functionality, like account balances and ATM locators, to transactions like bill payment and account transfers," Strothkamp said.

However, despite a nearly unanimous commitment to expand overall mobile functionality, FIs remain split on plans to support mobile point-of-sale payments, according to the survey results.

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"Smart banks are making investments to build out mobile banking tools and adding the ability to make any type of payment, whether it's bill payment or P2P. And the really smart banks are the ones looking way down the line at mobile payments for paying in stores," said James Wester, editor of MobilePaymentsToday.com.

The Fiserv-commissioned survey indicates that FIs are moving to meet these transactional needs by delivering more robust mobile banking and payment solutions.

"Consumers are adopting mobile banking apps. And they still trust their banks, especially compared to wireless operators and tech companies," Wester said. "So banks are in a unique position to push mobile payment adoption because that's how people have always used them – to hold their money and make payments. Eventually, I think people will begin to adopt mobile payment methods precisely because their banks are making them available and that's who they trust with their money."

Priority for 2012: More robust mobile functionality

Nine out of 10 of the FIs surveyed already have a mobile banking offering that provides basic account access, and almost all provide ATM/branch locators, transfers between accounts and bill payment.

For 2012, FIs plan to focus on delivering remote deposit capture, actionable alerts, which allow recipients to initiate an action such as a funds transfer in response to an alert about a low balance, and additional payment capabilities. Eight out of 10 surveyed institutions plan to invest in some type of mobile payments in the next 12 months, with person-to-person mobile payments cited as a priority by seven respondents.

Mobile payments: A non-traditional competitive threat

While FIs view the progress of non-traditional competitors such as technology and telecommunications providers as a validation of mobile payments, and as a promotional tool to build consumer and merchant interest, the majority of the FIs surveyed stated that such announcements have had no or minimal impact on their own mobile payments strategy.

This may put them at risk of delivering new capabilities too late, according to the study.

"Most banks and credit unions are committed to delivering more robust capabilities and a better consumer experience via the mobile channel," said Erich Litch, division president, Digital Channels, Fiserv. "Faced with a rapidly evolving market that is also being pursued by sophisticated, well-funded third-parties, it is essential that financial institutions that want to remain competitive push forward with their own mobile banking and payment strategies in 2012."

For more information on this topic, visit our mobile banking research center.