Survey Shows High Demand for Corporate Mobile Banking
Fundtech, a provider of global transaction banking solutions, and Aite Group, an independent financial research and advisory firm, have released a report ‘The Business Case for Offering Corporate Mobile Banking Services’, based on the findings of a global survey of treasury executives.
Based on an October 2010 survey of over 300 treasury executives worldwide, the findings reveal high demand among treasurers for mobile corporate banking services, with approximately two-thirds of businesses at least “somewhat likely” to use mobile corporate banking services to perform basic transactions such as checking balances or transferring funds. Over 40% of respondents described themselves as “likely” or “very likely” to do so. Even more importantly, over 55% of treasurers expressed interest in performing more advanced functions such as approving transactions and initiating payments via a mobile device.
Mobile banking technology has primarily been offered to the consumer/retail channel but survey results indicate that corporate mobile banking presents a new, untapped opportunity for banks. Interestingly, approximately 49% of businesses are willing to pay for the convenience of mobile cash management capabilities, pointing toward the ability for banks to generate fee-based revenues to cover some of the cost associated with this kind of technology investment.
Christine Barry, research director at Aite Group and author of the report, said: “Although banks have been slow to extend mobile corporate banking to their business customers, the survey findings clearly indicate that there is growing demand for this kind of service. What was most surprising was the percentage of respondents who would pay for such a service. In an environment where banks need to identify innovative new ways in which to attract and retain clients, now may be the right time for banks to consider investing in mobile banking platforms for their corporate customers.”
Other survey findings included:
In response to customer demand, Fundtech is launching Mobile ACCESSplus, a mobile platform designed specifically for corporate electronic banking. Mobile ACCESSplus is an extension to Fundtech’s Services Platform, a service oriented architecture (SOA) platform designed for transaction banking. Banks can now take advantage of Fundtech’s new platform to extend corporate mobile banking services to their business customers.
“The survey findings validate what we have been hearing from CFOs and treasurers for some time now and the reason why we are launching Mobile ACCESSplus,” said Rhys Jones, head of innovation at Fundtech. “With executives constantly on the road or away from their desks, they need to be able to perform both basic and advanced functions on a mobile device to make sure workflow is uninterrupted and operating smoothly.”
A global bank headquartered in the UK is the first client of Mobile ACCESSplus, and plans to deploy the Bacsactive-IP Mobile service to its clients in the near future.