The number of subscribers using their mobile phones to carry out banking transactions will grow rapidly over the next two years, reaching a total of 150 million globally by 2011. This figure refers to users in developed markets, with Western Europe, North America and the Far East forecast to account for 70 per cent of the user base by 2011.
A report from Juniper Research says mobile banking is increasingly playing a key role in the distribution channel strategies of banks as they compete to attract and retain customers. Making balance or simple information enquiries via SMS is already commonplace but banks are now looking at using downloadable applications or the mobile Web for more sophisticated transactions. Juniper identifies a number of factors which must be addressed if this market is to grow including variations in financial regulation between countries, ease of use and security. The latter is particularly significant as there are still many customers who are reluctant to trust important financial transactions to their mobile phone, despite the obvious convenience it provides.
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