Mobile banking is not a mass phenomenon. Only 11% of German mobile
internet users also access banking websites over the phone. Other internet
services such as e-mail, weather reports or new ringtones are still much more
popular. However, 31% of mobile surfers can imagine using mobile banking in the
future. chart 1
Mobile internet is usually the prerequisite for mobile banking. Many
banks now offer online-banking websites that are specially designed for mobile
phones. This appeals particularly to people who go online with their mobile
phones. Already, one in five Europeans below the age of 35 indulge in this activity.
Better technology and affordable data plans will add to their numbers. chart 2
In Germany, a majority of mobile surfers uses mobile internet also at
home. This illustrates that internet access via mobile phone has unique qualities
(e.g. no booting time, ready to hand, special applications) that appeal to users
even though a desktop computer is usually available. chart 3
Mobile surfers are more often financially self-directed. Evidence from
Germany suggests that consumers who access the internet from their mobile
phones are more likely to be financially savvy, to have higher incomes and to use
online banking. Hence, they are an attractive target group. Yet, the bigger this
group gets, the less distinction will remain to the rest of the population. chart 4
Mobile banking is more than just mobile account access. True, most
mobile bankers still use the phone to conduct relatively mundane tasks such as
checking account balances. However, around 10% of German iPhone owners
have downloaded additional software (apps) which add a broad array of financial
tools. This makes the concept of mobile banking much more interesting,
particularly since other phone makers are developing similar marketplaces for
such apps. chart 5
Third-party apps add new variety. Most apps on the US top-100 list are
software that assists in managing personal cash flows: it helps to keep books and
reminds the user to pay bills on time. There are also many straightforward mobilebanking
applications on the top-100 list, usually offered by the account-holding
bank. The long tail of other applications includes tools such as currency converters
and price-comparison sites. chart 6
Some apps leverage the unique powers of the mobile phone. The most
popular finance apps in the US include finance news, budgeting tools, ATM finders
and a tip calculator, which helps to avoid embarrassment and overspending in a
restaurant. One app lets consumers deposit cheques by taking a picture of it with
the phone rather than sending the paper slip to the bank. chart 7
Obstacles remain: usefulness, convenience and security. Most
consumers currently shy away from mobile banking because they don’t see the
point, find it too complicated or unsafe. Smartphones and financial apps are steps
ahead, but it is important to adapt them to different banking habits: where there
are few cheques, such as in Germany, there is little need for a cheque-depositing
app. New ideas and country-specific solutions are to be expected. chart 8