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Mobile Banking v.2.0: Time for the Perfect Storm?

Mobile Banking v.2.0: Time for the Perfect Storm?

Aite Group anticipates that the active base of mobile banking users in the United States could reach over 1.6 million by year-end 2007, rapidly rising to 35 million users by the end of 2010.
By Nick Holland

Boston, MA, September 4, 2007 – A new Impact Report from Aite Group, LLC takes an in-depth look at current mobile banking activity, and assesses the vendors that are bringing mobile banking solutions to market globally. It aims to examine the solutions and technologies currently available and provide a roadmap for financial institutions, enabling them to better understand the opportunities and pitfalls of mobile banking.

According to the report, titled Mobile Banking v.2.0: Time for the Perfect Storm?, the time is right for financial institutions to revisit offering mobile banking solutions, after largely failing in 2001, when hype significantly outstripped reality. Today, mobile handsets and the speed and bandwidth of wireless networks are capable of enabling mobile banking without the hurdles previously encountered. The vital third element, end-user adoption, remains the uncertain factor, but looks promising.

The mobile banking vendor landscape has also evolved. While many of the veteran providers still exist, a number of newcomers have come onto the scene after initial mobile banking services fell from grace. These vendors have different attributes and should appeal to financial institutions of different types and sizes.

"After a few false starts, the time for mobile banking has finally arrived. There could be as many as 35 million active mobile banking users in the United States by the end of 2010," says Nick Holland, senior analyst at Aite Group and author of the report. "It is likely that enough water has passed under the bridge for first-generation mobile banking initiatives to be seen as distinctly separate from current-generation solutions (as they should be). Today's mobile banking services are as far removed from their ancestors as MP3s are from eight-tracks."

This 43-page Impact Report contains 11 Figures and profiles eight vendors, including Clairmail, Firethorn, Fronde Anywhere, Fundamo, mFoundry, MShift, Paybox, and Yodlee.

Clients of Aite Group's Retail Banking Service can download the report.