Fixed Mobile Convergence

Developing a mobile banking channel for their corporate clients is a top priority for bankers, according to a survey announced by Fundtech, a provider of global transaction banking solutions.

Many bankers feel mobile banking channels have the potential to become an important competitive differentiator. By far, the major concern is related to security and fraud issues. The survey, in partnership with Aite Group, was done in March among 267 bankers.

More than half of the respondents said that developing their mobile corporate banking services is a top priority. Around 42 percent rated their customer's interest as high priority, while 31 percent respondents surveyed believe that mobile corporate banking will be a competitive differentiator for their bank.

However, around 38 percent of bankers see mobile corporate banking is becoming just another service delivery channel. More than 70 percent of bankers think fraud/security concerns are the biggest hurdles to growth in mobile corporate banking.

“The results of the survey show strong interest in developing the mobile corporate banking channel,” said George Ravich, chief marketing officer of Fundtech (News - Alert), in a statement. “One interesting dichotomy was revealed: while only 15 percent of those bankers surveyed see mobile corporate banking as a revenue opportunity, our recent survey done in partnership with Aite Group revealed that 49 percent of corporate treasurers are willing to pay for such services.”

“This suggests that banks may still not yet fully realize the business opportunity for mobile banking,” Ravich added.

Mobile banking growth in the U.S. will be fueled by adoption of smartphones and regular mobile Web use. Consumers are still struggling to figure out exactly how they will use mobile banking. To reach one in five U.S. adults, U.S. banks will need to enhance functionality significantly to create a value proposition that resonates with both online and offline consumers.