Magazine article American Banker

Caution on Mobile May Prove Costly

Magazine article American Banker

Caution on Mobile May Prove Costly

Article excerpt

Byline: Will Hernandez

Financial institutions that are taking a wait-and-see approach to mobile payments risk falling behind early investors as the market begins to take shape, according to research published by Fiserv Inc.

The Brookfield, Wis., technology company commissioned the independent research firm Forrester Research Inc. to survey by phone 15 executives from major U.S. banks and credit unions in October.

The majority, 86%, said they had clear-cut mobile banking strategies, the survey found. But mobile payments remained in the background as most chose to sit back and watch the market develop. The results were released Monday.

Nearly all of the respondents indicated they were waiting to see the emergence of more defined mobile payments technology and process standards, increased competitive pressure and a clear value proposition before investing.

Lack of more defined technology appears to be the primary obstacle preventing financial institutions from investing more capital in mobile payments, Brad Strothkamp, Forrester principal analyst for e-business and channel strategy, said in an interview.

"Banks are saying when the dust settles, we'll be there. But we can't code to four different standards," such as near-field communication and bar codes, he said.

Instead of investing in mobile payments, banks are investing in "lower-hanging fruit" such as mobile banking and are solidifying that area with features such a remote deposit capture, Strothkamp said. …

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