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Apr. 24, 2007

According to new numbers from JupiterResearch, banks and many financial institutions are rushing to make available mobile banking services consumers simply don’t want or need.

Jupiter found that only about eight percent of online users who own a cell phone are interested in browsing on the phone to check out account balances and such.

Instead of trying to duplicate online banking services, financial institutions should experiment with mobile Internet and text-based services, and market them to young users as well as to those who are already surfing the wireless Internet.

Overall, the mobile payment and banking space remained popular last week, although consumer uptake is very marginal in these early days.

Cyphermint Inc., which is squaring off against Obopay Inc., Sapphire, TextPayMe, Secure Wireless Transfers and other providers, announced a deal to provide mobile services for Texas-based financial services provider Fidelity Express.

eBay's PayPal Mobile, which launched in early 2006, is also making headway in the space.

Banking analyst Asaf Buchner says “today, the growing interest around mobile banking is fueled by banks and financial institutions’ desire to further expand their customer relationships to the mobile channel rather than real consumer demand.”

Buchner added “banks have to identify potential early adopters and educate these customers about the real value of mobile services if they wish to succeed in this specialized segment.”

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Source: Wireless Week