Research Reveals Global Appetite for Mobile Banking Services

Study Concludes Mobile Banking in its Infancy, but Well Situated for Growth

Oct 15, 2007, 01:00 ET from Sybase 365

    DUBLIN, Calif., Oct. 15 /PRNewswire-FirstCall/ - There is significant
 enthusiasm for mobile banking services among consumers worldwide, according
 to research released by Sybase 365, a subsidiary of Sybase, Inc. (NYSE:  
 SY), the global leader in messaging interoperability and mobile content
 delivery. Surveys conducted in the Americas, Europe and Asia-Pacific
 regions showed a burgeoning demand for mobile banking among users, though
 this is tempered by concerns about security and lack of awareness.
     Europe appears most eager to take advantage of mobile banking, with 61
 percent of mobile users interested in mobile services if offered by their
 bank. This compares to 40 percent in Asia-Pacific, and 37 percent of those
 surveyed in the Americas (including Argentina, Brazil, Canada, Mexico and
 the US), who would like to be able to interact with their bank via a mobile
 device. In fact, in each of the regions surveyed, more than a quarter of
 respondents would consider switching banks if an alternative provider
 offered them free mobile banking.
     While the study points to a strong interest in mobile banking, it also
 reveals that mobile banking is still in its infancy around the globe. As
 would be expected, the service is almost twice as prevalent in
 Asia-Pacific, with 15.4 percent of those surveyed in the region reporting
 to have used a mobile phone to check their bank balance in the prior three
 months. This compares to just 8.7 percent in the Americas and 7 percent in
 Europe, which shows there is a disparity between the demand for mobile
 banking services and the availability of services.
     Underlying the worldwide enthusiasm for mobile banking is a trend that
 has been coined by the survey as 'nano-economics,' or a near obsession by
 consumers with managing their finances to the cent and by the minute. In
 both the United States and Europe, 40 percent of those surveyed claim to
 know exactly how much money they have in their bank account at all times
 and 41 percent check bank balances on a daily basis. Mobile banking
 services cater to this trend, offering the option to check account
 balances, transfer funds, and make payments or validate transactions, among
 other capabilities.
     Mobile banking is an opportunity for banks to offer a value-added
 service as an incentive for new customer acquisition and customer
 retention, and promotion of mobile banking services will have a direct
 impact on consumer adoption of the technology. Of concern, nearly half (49
 percent) of European respondents did not know if their bank offered mobile
 banking services, and that figure grew to more than half in Asia-Pacific
 (51 percent) and the Americas (56 percent). It seems as if financial
 organizations are missing an opportunity by not promoting mobile banking
 services in an effective manner, which -- given the high levels of interest
 among non-users -- could become a lost opportunity.
     Security is often seen as another barrier to the adoption of mobile
 banking, with 47 percent of respondents in Asia-Pacific and 44 percent in
 the Americas citing security as a concern. European consumers show the
 least concern over the security of mobile banking, with only 25 percent of
 respondents citing it as a reason for not using mobile banking services.
     "Consumer adoption of mobile services is positioned for rapid growth
 once financial institutions realize the perceived value and hidden demand
 for these services," said Raj Nathan, CMO, Sybase. "Banks need to more
 actively promote mobile banking services by highlighting the benefits to
 their customers. As demonstrated in this survey, there are a number of
 consumers likely to welcome another tool to support their financial
 fastidiousness in a more immediate and flexible manner than the Internet
 can afford."
     About Sybase 365
     Sybase 365, a subsidiary of Sybase, Inc. (NYSE:   SY), leads the world in
 the global delivery and settlement of mobile messaging interoperability,
 and the management and distribution of mobile content. Processing more than
 6 billion messages per month, Sybase 365 reaches more than 700 mobile
 operators around the world. For more information, visit:
     Sybase and Sybase 365 are trademarks of Sybase, Inc. All other company
 and product names mentioned may be trademarks of the respective companies
 with which they are associated.
     Statements concerning Sybase 365's future prospects, products and
 business relationships are forward-looking statements that involve a number
 of uncertainties and risks and cannot be guaranteed. Factors that could
 ultimately affect such statements are detailed from time to time in the
 Sybase, Inc. consolidated Securities and Exchange Commission filings,
 including but not limited to its annual report on Form 10-K and its
 quarterly reports on Form 10-Q (copies of which can be viewed on the
 Company's web site).

SOURCE Sybase 365