The number of users of mobile banking services in the US will reach 21.27 million by 2010, according to projections from research house Frost & Sullivan.
The analysis suggests that mobile payments and mobile banking are set to transform the financial services industry by providing convenient solutions to a largely unmet need for access to a wide range of financial services while on the move.
Frost & Sullivan strategic industry analyst Vikrant Gandhi, comments: "There is a flurry of recent activity around both payments and banking, with investments, operator adoption and development of innovative solutions driving these markets."
However, gaining subscribers' confidence and educating them about the capabilities of mobile financial services offerings poses a major challenge, he believes.
"A strong push by FIs and mobile operators is required to help in the adoption of mobile financial services," states Gandhi. "Specialised industry participants from the mobile payments and mobile banking segments need to work closely to offer solutions capable of satisfying a wide range of financial needs of mobile subscribers."
Integrated mobile banking and payments services are likely to be a key future trend, he says. Although the market may still be segmented into mobile payments and mobile banking verticals, future developments could see these functionalities being available in a single application from an end-user perspective.
The F&S forecast is more restrained than a recent projection from Boston-based consultancy Aite which predicted that mobile banking numbers would rise from 1.6 million in 2007 to 35 million by year-end 2010,