U.S. demand for wireless banking on the rise, study says

STAMFORD, Conn. - More than 7 million U.S. consumers will use wireless banking services regularly by 2005, according to a study by research service GartnerG2. Only 500,000 U.S. consumers made use of ATMs and other wireless transactions in 2001, GartnerG2 claims.

Compared to Europe and Japan, U.S. consumer demand for wireless financial services is immature, but evolving rapidly, GartnerG2 research analyst Brad Adrian said.

GartnerG2 predicts 1.2 million Americans will use wireless financial services this year, growing to 2.6 million in 2003, according to a news release. Consumers are expected to use the services to receive and pay bills, make cashless purchases, apply for credit or services that require identity validation and get cash from an ATM or live teller.

Rather than focusing on generating fees, financial service providers need to anticipate consumer demand for wireless services and how they can enhance self-service, Adrian said.

GartnerG2's report, "A Market for Wireless Financial Services," is based on an analysis of data collected through consumer-based surveys and banker-focused surveys. GartnerG2 is a research service of Connecticut-based Gartner, Inc.,a research and advisory firm that provides data on technology and business growth to more than 11,000 clients.