IDC warns banks to prepare for mobile banking

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Mobile banking is set to rise according to a report released by IDC today.

The analyst firm predicted that the area is growing and banks don’t want to be left behind, despite the current economic climate dampening the need for the technology.

Marc DeCastro, research manager for consumer banking at IDC, said: "This is the time for banks to invest in their strategies for mobile banking or risk playing rapid catch up once usage does take off.”

"Mobile banking for retail customers will become a staple no different than online banking,” he added.

IDC concluded that the most important element for mobile banking at present is to expand its current features.

The tech is mostly currently used for checking balances and transferring funds, but making payments is the main function banks should focus on, according to IDC.

As the economy recovers, more data plans and mobiles will be sold, so more and more people will have the ability to use mobile banking, the report suggested.

IDC advised banks to look at the area as more than just bill payments or an extension of their online banking, but to get feedback from their customers as to what they want out of it, as well as making it available on more platforms.

DeCastro said: “Just like online banking, the justification for offering a mobile solution will be based on customer retention and cost reduction. The convergence of technologies into the mobile phone will continue to attract customers to the technology, and banks will need to offer a solution."

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