Banks Have Yet to Create the Killer App for Mobile Banking – Bank Systems & Technology

lthough the use of mobile banking has grown from 5% of the U.S. online population in 2007 to 12% in the second quarter of 2010, according to a report released this week by Forrester senior analyst Emmett Higdon, such that 10 million Americans engage in mobile banking today, banks have yet to create the kind of “killer app” that will make mobile banking truly appealing to bank customers.Related ResourcesMulti-Country Deployment: Banking for the 21st CenturyAre banks ready for the next generation customer?Banking on MobileDespite the aggressive adoption of mobile banking — Forrester predicts that by 2015, more than 50 million U.S. consumers will be banking via their mobile phone — “the unfortunate reality weve seen is that consumer interest in mobile banking hasnt moved a lot in the last few years,” says Higdon, who spoke to Bank Systems & Technology in an interview yesterday. “The value proposition is not clear.”In a Forrester survey of online U.S. adult consumers, 37% said they dont use mobile banking because they see no value in it. “That doesnt mean that there isnt value, it means that as weve marketed it so far, some people cant wrap their heads around it, they dont know what it means to bank any time, anywhere. Until theyre on vacation and forgot to pay their mortgage or need to transfer money, perhaps to a son or daughter in college, some people dont see the need for mobile banking. “I encourage clients to think about how customers use other channels today and extrapolate,” he says. “Not every customer is interested in having bank branch in their pocket. But if Im a dyed-in-the-wool funds transfer user and I make eight transfers a month, I might be interested in using transfer functionality down the road on my mobile device.”

via Banks Have Yet to Create the Killer App for Mobile Banking – Bank Systems & Technology.

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