Corporate Mobile Banking: The Times They Are a-Changing

by Jacob Jegher, November 8, 2007

Abstract

New York, NY, USA November 8, 2007

Corporations are poised to embrace mobile banking solutions, with 8 of the top 25 banks releasing a solution in 2008. This number will climb to 14 out of 25 by the end of 2009.

Cash management is at a turning point. By and large, the applications have matured and provide a host of core features and benefits for their demanding client base. However, there is plenty of room for improvement. Corporate banking customers are constantly looking to their banks to provide innovative ways of increasing efficiency. It is time for banks to step on the accelerator. While the potential of the consumer mobile banking market has been a focus recently, little emphasis is being placed on the corporate or small business markets.

In a new report, , Celent examines how mobile devices are impacting work attitudes, behavior, and productivity. The state of the mobile world is opening an array of opportunities for corporate users. A cultural and behavioral shift has started to occur as large, midsize, and small businesses have affixed mobile devices to their users' hips. Because corporate users are so in tune with the benefits and flexibility of mobile technology, they make excellent candidates for mobile banking services. Device evolution, Blackberry mania, faster networks, and the prevalence of data plans will drive adoption of corporate mobile banking services. Competitive pressures from first movers, new vendor solutions, and demand from corporations will also be important drivers. Based on early mover bank expectations and customer feedback, Celent estimates that 8 of the top 25 banks will have a solution out in 2008, and 14 of the top 25 will address this channel in one way or another by the end of 2009.

This report explores why banks are taking their time with mobile corporate banking. A detailed depiction of potential mobile banking features and functions is provided, along with an analysis of mobile banking technologies, and the current state of the vendor market (cash management and mobile banking). Finally, the report presents a case study on Wells Fargo, the first US financial services company to announce a mobile banking solution for its commercial banking customers.

"Mobile access is a natural and innovative add-on to today's corporate cash management services," says Jacob Jegher, senior analyst in Celent's Banking group and author of the report. "Businesses of all sizes are already indicating that they would like to gain access to mobile services. Banks have to be able to offer these services in order to innovate, respond to market demand, and remain competitive in a crowded and highly mature playing field. The time to provide mobile banking services to business customers is now."

This 25-page report contains nine figures and two tables. A table of contents is available online.

Members of Celent's Wholesale Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Tel: +44 (0)782 448 3336

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Table of Contents

New York, NY, USA November 8, 2007

 

Executive Summary 03
It's Time for a Transformation 05
A Sea Change in the Corporate World 06
  Mobile Devices and the Workplace 06
Current State of Corporate Mobile Banking 11
  Banks Are Slow to Get Out of the Gate 11
  Why Isn't There a Stampede? 11
Mobile Features and Functions 14
  Customers Are Ready for Mobile Access 14
  Cash Management and Mobile Banking Vendors Have Yet to Provide Capabilities 15
  Browser Technology Best for Early Stage 16
Wells Fargo: Corporate Mobile Banking Pioneer 18
  Solution Overview and Implementation Milestones 20
  Benefits 22
The Time Is Now 24
  Mobile Corporate Banking Has a Bright Future 24

 

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