Although most financial institutions have clear-cut strategies for mobile banking, they indicated the market will need to mature further before they make any sizable investments to support mobile payments, according to a recent survey from Fiserv.
Through the remainder of the year, financial institutions plan to enhance the value of mobile banking by enabling support for newer operating platforms and devices and adding more robust functionalities, according to a statement. However, very few of the surveyed financial institutions have clear mobile payment strategies in place, leaving them at risk of falling behind other companies that are rapidly entering the space.
"Mobile payments were a hot media topic in 2010, but not all mobile payments are created equal," Brad Strothkamp, principal analyst, eBusiness and Channel Strategy, Forrester Research Inc. wrote in the report. "In 2011, bill payment and transfers via mobile devices will undoubtedly increase as availability and utilization of mobile services grow."
Banks and credit unions are keeping a close eye on these variables and want to make sure they have a business case in place before committing to significant mobile payment investments, according to a statement. The factors that would prompt banks and credit unions to act more quickly and increase their investments include more defined technology and process standards, merchant readiness, increasing competitive pressure from other companies or financial institutions and the emergence of a clear value proposition.
"While financial institutions are reluctant to invest heavily in mobile payments today, this is the right time to be developing a strategy for the future," said Erich Litch, division president, Digital Channels, Fiserv. "Waiting for all the pieces to fall into place before starting to think about mobile payments will leave the door open for third parties to take business away from financial institutions. Taking the time to map out a strategy will ensure that decisions and infrastructures being put in place today will facilitate support a broad range of mobile payments in the near future."
