Johannesburg (IT News Africa) — A new report from IDC Financial Insights forecast mobile banking to grow significantly around the world despite the current global economic recession.
The study, Market Analysis: Retail Mobile Banking Vendor Survey Results – Mobile Banking Will Have Its Day, Just Not Today indicates that while current economic conditions may have curtailed both consumers’ demand for mobile banking and banks’ willingness to invest in it in the short term,
things are still moving forward.
“This is the time for banks to invest in their strategies for mobile banking or risk playing rapid catch up once usage does take off,” said Marc DeCastro, research manager, Consumer Banking and Credit/Community Banking, IDC Financial Insights.
“Mobile banking for retail customers will become a staple no different than online banking. Just like online banking, the justification for offering a mobile solution will be based on customer retention and cost reduction. The convergence of technologies into the mobile phone will continue to attract customers to the technology, and banks will need to offer a solution.”
IDC Financial Insights recommended that banks take a more strategic look at mobile banking rather than view it as simply an extension of online banking and bill payment. This includes reviewing the available platforms, listening to the suppliers, and listening to customers before making the investment.
Despite the rocky start, mobile banking will be an important channel for retail customers.
For mobile solution providers, IDC Financial Insights warned, it will be important to realize that pricing based on number of users may cause banks to avoid actively marketing to keep operational costs lower.
IDC Financial Insights is a leading independent and global provider of research-based advisory and consulting services that enable financial services industry executives to maximize the business value of their technology investments; minimize technology risk through accurate planning; benchmark themselves against industry peers; adopt industry bestpractices and drive technology-enabled business innovation.
By Mthulisi Sibanda
