Going Mobile: The Future of Banking?

It wasn’t too long ago when the thought of checking statements and paying bills online was a revolutionary concept.  But with the arrival of “mobile banking” (or the “mobile wallet,” as it has been referred to), online banking may soon become outdated.  According to a report published by Celent, it is estimated that by 2010, 35% of households that do online banking will be using mobile banking.  Mobile banking will not only enable customers to check statements and pay bills online through the use of their cellular phones, the FDIC reports that customers may soon also have the ability to make purchases and payments from their cellular phones, send money through a secure connection, and download money to their phone.  Celent also estimates that these transactions will comprise 10% of the contactless market by 2010.  Apparently, mobile banking is of great interest to members of Generation Y (i.e. 18-25 year olds), with 40% of this population indicating that mobile financial services would be a factor to consider when selecting a bank.  However, given the frequency of lost or misplaced cellular phones, one obvious concern would be how to protect against unauthorized access to a customer’s bank account.

For further information contact Mary A. Zambreno at Dickinson, Mackaman, Tyler & Hagen, P.C.