According to a new study published by Juniper Research, the number of mobile phone users who would make mobile banking transactions using their handsets is expected to exceed 150 million globally by 2011. As the report states, the most advanced mobile banking market is in the Far East, yet mobile banking services are starting to be offered in large numbers in North America and Western Europe as well.
The study shows that developed nations of the Far East, North America and Western Europe should account for more than 70 percent of the total number of users by 2011. The author of the report, Howard Wilcox, stated that “Transactional or “push” mobile banking is being offered increasingly by banks via downloadable applications or the mobile web, complementing existing SMS messaging services for balance and simple information enquiries. Mobile banking is a key element in banks’ distribution channel strategies as they compete to attract and retain customers.”
The report published by Juniper Research emphasizes the extra convenience the services bring to the users. It is already a common fact that today most people are unlikely to leave home without their mobile phone in their pocket. At the same time, mobile banking is just one option from the wide range of applications and services available for access directly from a handset. Currently available smartphones offer users the benefits of all those applications, which have been designed to make their lives more comfortable.
On the other hand, the report also highlights the need to address several factors meant to allow for further development of the market. Some of these include financial regulations, which are different from country to country, application slickness, and security. Most often, users choose to trust a certain service due to perception and image, and not while taking into consideration security strength.