TowerGroup Estimates that Over 40 Million U.S. Consumers Will Use Mobile Banking by 2012

New Research Forecasts Mobile Banking Adoption and Examines Its Impact on

Other Banking Delivery Channels

    LAS VEGAS, Nov. 13 /PRNewswire/ -- BAI Retail Delivery Conference --
 Long stalled by lack of adoption and a range of technical issues, new
 research from TowerGroup finds that mobile banking is finally coming into
 its own. Banking over the mobile channel, especially when considered in the
 context of an evolution toward mobile payments, is now fast becoming a
 market mandate -- and is no less important than the dawn of Internet
 banking in the late 1990s.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20070806/TGLOGO )
     Mobile banking initiatives launched in the early part of this decade
 crashed and burned -- victims of a lack of compelling features,
 functionality and consumer friendliness. Compounding these issues were
 limited device support, poor network availability and slow data speeds, as
 well as a lack of focus from mobile operators.
     TowerGroup estimates that by year end 2007, mobile banking customers
 will top one million, and that more than 40 million U.S. consumers will
 adopt mobile banking by 2012 (see related graph at
 http://www.towergroup.com/research/content/page.jsp?pageId=2482).
 TowerGroup attributes this growth to substantial improvements across
 wireless networks, handsets and applications, as well as the significant
 marketing and technology investments being made by top banks to increase
 consumer awareness and trial.
     "With mobile device penetration in the U.S. at an all time high and
 market dynamics shifting, mobile banking is finally poised to thrive," said
 Bob Egan, Chief Analyst at TowerGroup and author of the research.
 "Consumers view their phones as trusted devices, even more so than their
 desktop PC. This perception will help fuel the adoption of mobile banking
 among non-online banking users."
     Research highlights include:
 
     -- The adoption of mobile banking will be fueled by two primary factors:
        consumers' increasing preference for real time, self-service
        transactions; and their growing adoption of mobile data services and
        applications.
     -- TowerGroup estimates that up to 30 percent of online banking users will
        adopt the mobile channel in the next five years.  However, mobile
        banking is also likely to appeal to a segment of the banking population
        that accesses services via ATMs, but is not willing to use or
        comfortable with online banking.  TowerGroup expects that by 2012,
        approximately one-fourth of all mobile banking users will come from
        outside the online banking channel.
     -- The growth of mobile banking still faces cultural, technical and
        business challenges. Chief among the technical challenges are
        information security and consumer privacy.
     "Beyond technology, broad participation in mobile banking will be most
 encouraged by maximizing and improving the customer experience," said
 Charul Vyas, an analyst in the Emerging Technologies research service and
 co-author of the research. "Banks must invest substantial marketing dollars
 to increase consumer awareness about mobile banking, as well as remain
 vigilant regarding privacy and data security in this area."
     Two new research reports on mobile banking authored by Bob Egan, George
 Tubin and Charul Vyas are available for review by qualified members of the
 press.
     -- US Mobile Banking Forecast: 2007-2012
     -- Mobile Banking Evolution: Issues and Considerations for 2008
     To request a copy or arrange an interview with one of the authors,
 please contact Rachael Adler at +1.212.455.8037 or radler@cooperkatz.com.' target='_blank' title='radler@cooperkatz.com.'>radler@cooperkatz.com.
     Those interested in subscribing to a TowerGroup research service may
 call +1.781.292.5200 or email service-info@towergroup.com.
     About TowerGroup: TowerGroup is the leading research and advisory
 services firm focused exclusively on the financial services industry. A
 respected source for trusted information and advice, TowerGroup brings many
 of the world's leading financial institutions, technology companies, and
 professional services firms a deeper understanding of the business and
 technology issues impacting their organizations. Headquartered near Boston
 in Needham, Massachusetts, and with offices in North America and Europe,
 TowerGroup serves a global client base. Visit www.towergroup.com for more
 information.
     Contacts:
     Rachael Adler                    Jorge Lavina
     radler@cooperkatz.com.' target='_blank' title='radler@cooperkatz.com.'>radler@cooperkatz.com.           jlavina@cooperkatz.com
     +1-212-455-8037                  +1-212-455-8041
 
 

SOURCE TowerGroup