Is Mobile Banking right for your bank?

Current trends in mobile banking show the industry’s adoption of mobile has been relatively slow. Javelin Strategy & Research found that from November 2007 to March 2010, mobile banking only increased 7 percent, and actually decreased from 2009 to 2010. Only eighteen banks out of the top 40 offered mobile banking in 2009. This number stayed the same in 2010. During the recession, consumers and financial institutions have invested less in mobile technology.

  • In December 2010, nearly 47 percent of mobile subscribers in the U.S. were mobile media users
  • From December 2009 to December 2010, the percentage of mobile phone subscribers with unlimited data plans increased from 21.3 percent to 29 percent
  • During the same period, smartphone ownership increased from 16.8 percent to 27.0 percent, while 3G/4G phone ownership reached 51 percent in December 2010

Forrester Research, Inc. predicts that mobile banking growth will grow from 12% in from the second quarter of 2010 to 20% by 2015 due to:

  • Consumer adoption of smartphones;
  • Increasing use of the mobile web; and
  • sustained growth of casual, informational use of mobile banking — to check balances, review transactions, or receive alerts.

Banks, however, will have to prepare for the risks that come along with mobile banking. Risks include:

  • People don’t take the same precautions regarding opening attachments on their phones.
  • Mobile malware focused on android and iPhone platforms; types and volume will grow
  • Traditional methods of detecting malware (signature-based and behavior-based checks) on PCs would be a heavy load on a phone computing resources and battery.

If you would like to learn more about mobile banking, information security programs, the benefits and risks of cloud computing and virtualization, recent trends in IT-related fraud, and more, make plans to attend the 2011 Iowa Bankers Assoiciation IT Exam and Current Issues Seminar. Conducted by the FDIC, the seminar takes place May 10 in Cedar Rapids and May 11 in Ankeny. The seminar covers everything you need to to design and implement an effective and comprehensive Information Security Program.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s