June 24, 2008 - 6:50am
Adding Mobile to the Mix
BB&T ($132 billion in assets) is one of those banks. Paal Kaperdal, SVP and online channel manager for the bank, says the Winston-Salem, N.C.-based institution looked first at customer needs when developing its m-banking strategy. "Mobile is just one method, one touch point where we can extend what we already do with a client," he says. "We don't see [mobile] existing separately from all the other interactions. ... There are significant synergies in making it work seamlessly across the various touch points." Currently, BB&T offers mobile banking exclusively to its Internet customers.
However, Eskander Matta, SVP with San Francisco-based Wells Fargo's ($575 billion in assets) Internet services group, says his institution already has disconnected the mobile channel from Internet banking. "You're able to enroll for mobile whether you're an online banking customer or not," he explains.
Matta notes that the bank first tested mobile among its own team members. Wells Fargo rolled out a mobile browser for its consumers in July 2007, and it introduced text banking in October 2007, according to Matta, who reports that the mobile channel has been extremely well received.
"Adoption is exceeding our expectations, and the usage statistics are very promising," Matta relates, adding that two-thirds of those enrolled in Wells Fargo's mobile banking program have been active within the past three months. For customers, "Data is consistent across all channels," he says. "There's no latency."
Payments Precursor
Matta says the bank currently offers limited money movement between a customer's own accounts through the bank's browser. "We want to build up a base of mobile banking users, then hope that they will participate more in the mobile payment area."
BB&T's Kaperdal, however, says his bank doesn't have mobile payments capability right now. "We're looking and evaluating [the possibility]," he reports. "But the larger question is: Will [mobile payments] be new revenue, or is it just shifting revenue from one payment form to another?"
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Ten million Americans already are mobile bankers. But that represents just 6 percent of all U.S. cell phone users. Clearly, there is a vast untapped market of potential mobile bankers. Javelin Strategy & Research, however, contends that banks are missing out on a huge opportunity by targeting m-banking services only at online banking users.
According to a recent study by the Pleasanton, Calif.-based research and consulting firm, 11 percent of non-online bankers say they would be likely to adopt mobile banking if they had the opportunity. Among this group, says Mark Schwanhausser, research analyst for Javelin, are young individuals, who traditionally are early adopters, and high-income individuals, particularly the mobile business executive. "Banks will have to put an investment into [targeting this market] or they'll be left behind," he adds.
Mobile payments, Schwanhausser contends, eventually will provide the return on those investments. "Returns will come from payments," he says.
According to a recent study by the Pleasanton, Calif.-based research and consulting firm, 11 percent of non-online bankers say they would be likely to adopt mobile banking if they had the opportunity. Among this group, says Mark Schwanhausser, research analyst for Javelin, are young individuals, who traditionally are early adopters, and high-income individuals, particularly the mobile business executive. "Banks will have to put an investment into [targeting this market] or they'll be left behind," he adds.
Mobile payments, Schwanhausser contends, eventually will provide the return on those investments. "Returns will come from payments," he says.
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But, Schwanhausser continues, it's important for banks to build mobile banking relationships now so they can profit from the channel down the road. "There's a huge learning curve for consumers," he explains, pointing out that the Javelin survey revealed that of the 12 percent of all online adults currently banking via mobile phone, just 12 percent reported activity within the past month. "You want to turn it into a habit [now]."
Javelin predicts the mobile channel "will grow rapidly over the next five years." Schwanhausser adds, "The number of banks getting into this channel is growing rapidly."
Javelin predicts the mobile channel "will grow rapidly over the next five years." Schwanhausser adds, "The number of banks getting into this channel is growing rapidly."
Adding Mobile to the Mix
BB&T ($132 billion in assets) is one of those banks. Paal Kaperdal, SVP and online channel manager for the bank, says the Winston-Salem, N.C.-based institution looked first at customer needs when developing its m-banking strategy. "Mobile is just one method, one touch point where we can extend what we already do with a client," he says. "We don't see [mobile] existing separately from all the other interactions. ... There are significant synergies in making it work seamlessly across the various touch points." Currently, BB&T offers mobile banking exclusively to its Internet customers.
However, Eskander Matta, SVP with San Francisco-based Wells Fargo's ($575 billion in assets) Internet services group, says his institution already has disconnected the mobile channel from Internet banking. "You're able to enroll for mobile whether you're an online banking customer or not," he explains.
Matta notes that the bank first tested mobile among its own team members. Wells Fargo rolled out a mobile browser for its consumers in July 2007, and it introduced text banking in October 2007, according to Matta, who reports that the mobile channel has been extremely well received.
"Adoption is exceeding our expectations, and the usage statistics are very promising," Matta relates, adding that two-thirds of those enrolled in Wells Fargo's mobile banking program have been active within the past three months. For customers, "Data is consistent across all channels," he says. "There's no latency."
Payments Precursor
Matta says the bank currently offers limited money movement between a customer's own accounts through the bank's browser. "We want to build up a base of mobile banking users, then hope that they will participate more in the mobile payment area."
BB&T's Kaperdal, however, says his bank doesn't have mobile payments capability right now. "We're looking and evaluating [the possibility]," he reports. "But the larger question is: Will [mobile payments] be new revenue, or is it just shifting revenue from one payment form to another?"