By Mark Brousseau
Smartphones will have a tremendous impact on mobile banking, Alain DeSouza, senior manager, Market Development, Solutions Marketing, at Blackberry, told attendees at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas yesterday.
DeSouza noted that, depending on the analyst numbers you believe, smartphones represent 20 to 26 percent of the mobile phones in the United States, and 12 to 14 percent of the mobile phones globally. When you consider that 4 billion people worldwide have mobile phones (with 1.3 billion mobile phones purchased annually) there is a lot of opportunity for smartphone mobile banking applications.
“Mobile banking will be one of the top seven applications people will have,” DeSouza said. He predicts the mass market adoption of mobile banking applications and that more companies will leverage mobile applications in general as a means of entering and exploiting new demographic segments.
And while iPhone has been getting a lot of the smartphone buzz, “the gorilla in the smartphone industry globally is Nokia, even though Blackberry leads the U.S. market,” DeSouza said.
What do you think? Post your comments below.
Saturday, June 6, 2009
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.
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.
Security Stymies Mobile Banking
By Mark Brousseau
Security fears are the single biggest factor inhibiting mass consumer uptake of mobile banking, Tom Wills, senior analyst, Security, Fraud and Compliance at Javelin Strategy & Research, said yesterday at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas.
When it comes to mobile banking, 47 percent of consumers surveyed by Javelin Strategy & Research cited security as the thing they are most concerned about, Wills said. “No other category comes close.” Additionally, 73 percent of consumers are concerned that hackers will get access to their mobile phone.
But many consumer fears about mobile banking security are misplaced, Wills said. “There is lots of misinformation and misperception,” he told the audience of 98. “For instance, there is a perception that there is a lot of malware in the mobile banking channel. That’s not true. But it doesn’t matter that a consumer is wrong; if they are concerned, it’s lost revenue for banks.”
Wills added that, “The mobile channel is one of the safest around, if good security is implemented. It has some innate security safeguards.”
Those comments notwithstanding, banks need to be prepared to deal with fraud in mobile banking, Clint Heyworth, attorney, Consumer Finance Group, Chambliss, Bahner & Stophel told attendees.
“Mobile payments are going to happen. That is a given,” Heyworth said. “Fraud is also going to happen. That also is a given. Stealing is not a new concept. Mobile banking is just a new forum for theft and fraud. Companies need to decide how to stop it.”
So, why haven’t we heard more about instances of mobile banking fraud? “Not enough people are using it, and there isn’t enough money going through it,” Eric Kraar, senior architect, Firethorn, told attendees.
Kraar noted that the myriad operating systems in mobile banking strengthens security for the channel because it “makes it harder to get at a lot of people with one attack.” Conversely, it also means that vendors can’t focus their security efforts in any one area. “We can’t come up with one solution that fits everything,” Kraar said.
What do you think? Post your comments below.
Security fears are the single biggest factor inhibiting mass consumer uptake of mobile banking, Tom Wills, senior analyst, Security, Fraud and Compliance at Javelin Strategy & Research, said yesterday at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas.
When it comes to mobile banking, 47 percent of consumers surveyed by Javelin Strategy & Research cited security as the thing they are most concerned about, Wills said. “No other category comes close.” Additionally, 73 percent of consumers are concerned that hackers will get access to their mobile phone.
But many consumer fears about mobile banking security are misplaced, Wills said. “There is lots of misinformation and misperception,” he told the audience of 98. “For instance, there is a perception that there is a lot of malware in the mobile banking channel. That’s not true. But it doesn’t matter that a consumer is wrong; if they are concerned, it’s lost revenue for banks.”
Wills added that, “The mobile channel is one of the safest around, if good security is implemented. It has some innate security safeguards.”
Those comments notwithstanding, banks need to be prepared to deal with fraud in mobile banking, Clint Heyworth, attorney, Consumer Finance Group, Chambliss, Bahner & Stophel told attendees.
“Mobile payments are going to happen. That is a given,” Heyworth said. “Fraud is also going to happen. That also is a given. Stealing is not a new concept. Mobile banking is just a new forum for theft and fraud. Companies need to decide how to stop it.”
So, why haven’t we heard more about instances of mobile banking fraud? “Not enough people are using it, and there isn’t enough money going through it,” Eric Kraar, senior architect, Firethorn, told attendees.
Kraar noted that the myriad operating systems in mobile banking strengthens security for the channel because it “makes it harder to get at a lot of people with one attack.” Conversely, it also means that vendors can’t focus their security efforts in any one area. “We can’t come up with one solution that fits everything,” Kraar said.
What do you think? Post your comments below.
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