Lacking any clear differentiated functionality, mobile banking appeals most strongly to those consumers already inclined to use the mobile channel, Forrester Research notes. Unfortunately, this segment is dominated by those already using online banking. As a result, banks are not realizing the full benefit of switching customers to cheaper servicing channels, but instead are seeing cannibalization of one low-cost channel (online) by another (mobile), says Forrester Research analyst Emmett Higdon.
Forrester reports that mobile banking has undergone rapid adoption, more than doubling from five percent of online users in 2007 to 12 percent in the second quarter of 2010. By 2015, this number is predicted to nearly double again, with one in five U.S. adults using mobile banking.
To reach one in five U.S. adults, as Forrester predicts mobile banking will do by 2015, U.S. banks will need to enhance today's functionality significantly to create a unique value proposition that resonates with both online and offline consumers.
Steady Mobile Banking Growth To Drive Demand For Better Functionality
Monday, January 31, 2011
Mobile Banking Growth Requires More Work on Value Proposition
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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