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October 30, 2008
Report: Smartphone Adoption Driving Growth of Mobile Banking
By Mae Kowalke, TMCnet Senior Editor
Cell phones may have been invented as a means of carrying on voice conversations in an ultra-portable way, but today these devices have evolved into miniature computers of sorts, and are used for all kinds of fun and practical purposes, including playing games, listening to music, checking e-mail, sending text messages, and performing mobile banking tasks.
That last item is one practical feature that is growing in popularity among busy adults, especially young professionals who find that using their phones to perform bank-related transactions is very convenient. Compass Intelligence recently conducted a survey that found 7.2 percent of mobile phone users ages 18 and older who are employed make use of mobile banking.
Compass’ survey found that mobile banking was most popular among frequent travelers (five or more trips per month) and young adults (ages 18-24). That’s hardly surprising, given that those demographics feature busy lifestyles and a willingness to try new technologies. Both groups are made up of people likely to own a smartphone, on which mobile banking can be an efficient and handy function.
In fact, smartphone and mobile banking adoption is closely correlated.
“The growth in smartphone adoption is expected to be a leading factor in the future adoption of mobile banking,” predicted Compass managing partner Stephanie Atkinson, in a statement.
Mobile banking, Compass reported, is likely to be become more user-friendly as smartphone adoption grows, since newer devices are much more like tiny computers than phones. Currently, 20.5 percent of smartphone users perform mobile banking; among users with basic cell phones, it’s only 2.7 percent.
Beyond the youth factor, Compass said men are more likely than women to use mobile banking, as are those who subscribe to push-to-talk services.
It’s clear that, as mobile phones evolve from voice communications devices to handheld computers, features like mobile banking will become more appealing and therefore achieve higher rates of adoption. Most likely, 7.2 percent is just the tip of the iceberg.
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Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.
Mae Kowalke is senior editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Mae's articles, please visit her columnist page. She also blogs for TMCnet here.
Edited by Mae Kowalke
