Friday, June 5, 2009

Cardholders Going Mobile

By Mark Brousseau

Below are some insights on mobile banking from the Third Annual Mobile Commerce Summit this week at The M Resort in Las Vegas.

… Cardholders have become increasingly more comfortable moving account information via the mobile channel, Kevin Morrisson, assistant vice president, Card Products, H&R Block, told attendees.

… Within six months of launch, financial institutions average 1.5 to 2 percent of their Internet users accessing mobile banking, Scott Moeller, chief executive officer, MShift, Inc. said during a breakfast briefing.

… Huntington Bank surveyed its mobile banking customers and found that 65 percent of them were likely to use mobile banking in the future, Ellen Johnson of Huntington Bank told attendees. Most importantly, 48 percent of respondents were very likely to recommend Huntington to another person because of the bank’s mobile banking offering.

… Huntington Bank’s mobile banking customers are 38 percent more profitable than the rest of the bank’s customer base, Johnson told attendees.

… Mobile phones are the preferred channel for global remittance because of their prevalence, speed and accessibility, T. Jack Williams, CEO, eCommlink, told attendees. “As an industry we need to focus on the ‘last mile’ of global remittance to truly open up the opportunity,” Williams said.

… When you look for a processor for your mobile payments initiative, select a partner committed to mobile for the long run, Williams told attendees. The processor needs to be able to support mobile traffic (short code support), must be compliant with SAS 70 and PCI, and must have an API library for a variety of mobile functions.

… Merchant agenda will need to be addressed by mobile payments or they will never adopt it, Williams said.

… More than 40 percent of mobile banking users are not online banking users, finds Aspen Marketing Services. This means that a mobile marketing initiative that largely focuses on online banking users (a common approach) will potentially ignore more than half of a bank’s customer base.

What do you think? Post your comments below.

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