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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesmobile banking

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

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?