2011: The year for mobile banking

Research published recently by Forrester shows that mobile banking provision in Europe is gathering pace. This refers to all three of the main mobile banking services – mobile web, mobile app and text-based services.

According to its analysis, of the European banks offering mobile banking services:

• 76% offer SMS alerts
• 67% offer mobile banking web sites
• 64% offer iPhone apps

However, despite the fact that financial institutions have been making forays into mobile services for a number of years, there is still a relatively low consumer adoption. Forrester estimates that consumer adoption averages approximately six per cent in Europe, with Italy leading the pack at more than 10 per cent. Six per cent of UK consumers currently use mobile banking.

So, do we anticipate this changing in 2011?

The short answer is yes. As we approach the New Year, financial institutions will need to continue to focus on programmes to restore their brand image and reputation and mobile will have an important role to play.

Forrester cites continued market fragmentation as a key barrier next year but banks cannot let aspects such as device standardisation to stall their mobile strategy. The unprecedented growth in mobile represents a significant revenue opportunity as well as a channel for service-based differentiation to rebuild customer goodwill. By 2014, Forrester forecasts that 39 per cent of consumers will access mobile web at least once per month, opening a much greater market for mobile banking adoption.

Offering customers greater functionality and empowering them to choose how and when they interact with their bank will be crucial to financial institutions improving their image in 2011, particularly with the lucrative Generation Y. However, while mobile represents one piece of the puzzle; banks should look to improve customer service across all channels to fully convince customers to trust them again.  Willing banks must now step forward.