Financial services

Mobile banking on the rise

16 April 2008

Mobile banking services will be used by 816 million consumers by 2011, according to a report by Juniper Research.

The report, which focuses on the mobile financial services sector, predicts a tenfold increase in the number of people using mobile banking services, compared to 2007.

Juniper found that financial institutions are delivering an increasing variety of products in the mobile environment including financial information services, funds transfer, bill payment and presentation, account management and customer service.

According to the report, the annual number of global mobile banking transactions will rise from 2.7 billion in 2007 to 37 billion by 2011, as more services are deployed worldwide. It adds that increased consumer confidence, due to the enhanced security measures in mobile financial services, will be crucial to greater service usage levels.

However, the report cautioned that a number of hurdles have yet to be overcome, including financial regulation, payment transaction costs, revenue share issues and customer support difficulties.