Mobile banking expected to soar in next few years

Rise of smartphones, user needs expected to fuel growth

The number of people actively using mobile banking in the U.S. will grow by more than five times by the end of 2013, Tower Group Inc. predicted in a report released yesterday.

In fact, that number is expected to double this year alone to 10 million users, up from 4.9 million users in 2008. In 2013, 53.1 million users will be banking with their smartphones and other devices, more than five times the number likely to do so this year, the analyst group said.

Several banks have up to 10% of their online banking customers using the mobile banking capability, while one unnamed bank told Tower that 25% of its online users are also doing mobile banking. Earlier this year, Tower said, Bank of America said it had nearly two million mobile banking customers, twice the number it had nine months earlier.

Tower analyst Charul Vyas said that the popularity of smartphones, particularly the Apple Inc. iPhone, has helped the growth in mobile banking. Bank of America mobile banking was one of the very first applications available on the first generation iPhone.

According to Vyas, the number of banks rolling out mobile banking efforts increases by hundreds of banks each month, and now includes small and medium-sized banks who learned from pilot programs of larger banks.

The recession has prompted consumers to more carefully manage their finances, and Vyas said that instant access to financial information -- coupled with the ability to quickly move funds over a mobile device -- can help. "Mobile is the only channel that provides this level of immediacy," Vyas said.

Another finding of the report is that mobile phone use is high across all demographic and socioeconomic groups, unlike desktop Internet use. That means that mobile banking technology can draw in new "unbanked" customers.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mobile bankingsmartphones

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Hamblen

Computerworld
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?