Even as the mobile voice traffic is on a decline in countries such as Chile, Brazil, and Argentina, Frost & Sullivan has some good news for the operators. The research firm states that the mobile operators can increase their average revenue per user (ARPU) with the help of mobile banking market.

 

Mobile banking is fast emerging as the preferred method of banking for customers in many countries. Most of the customers have already used online banking and this will help them to switch easily to mobile banking. Also, with the advent of mobile handsets that facilitate mobile banking, operators are witnessing a surge in the mobile banking business.

 

 A new analysis from Frost & Sullivan (News - Alert) for Latin American Mobile Banking Market states that customers are likely to favor SMS mobile banking as it will be economical and will not require a sophisticated handset. But the usage of mobile banking with a special WAP application will also catch up soon and carriers will do well to work with financial institutions to promote this value added service, says the report.

 

“The increasing usage of mobile devices over the last three years in Latin America has created a more suitable market for advanced applications and features such as mobile banking," says Frost & Sullivan Consulting Analyst Andres Sciarrotta. "By 2008, most major banks in the region had provided some kind of mobile banking service; however, the level of adoption continues to be low.”

 

Banks offer special codes and passwords for different transactions for security reasons. Apart from hiring more instructive personnel to let the clients know that the service is completely safe and secure, they have also launched educational marketing campaigns. The report states that banks are trying to rope in more customers to mobile banking in partnership with the service providers.

 

In another report published recently, Frost & Sullivan stated that mobile content as an avenue to the industry’s business model of the future. According to the company, mobile network operators and mobile device manufacturers with direct relationships with users will be able to link customers to a brand and offer an easy-to-use way of purchasing a variety of applications.