Mobile Banking in Asia: Adoption, Challenges, and IT Spending Outlook

by KyongSun Kong, December 16, 2014
Industry Trends
Asia-Pacific

Abstract

As channel diversification accelerates in the banking industry, financial institutions in Asia are increasingly turning their attention to mobile banking. This report examines how financial institutions in the region are tackling mobile banking as well as challenges for the future.

A new Celent report, Mobile Banking in Asia: Adoption, Challenges, and IT Spending Outlook, is based upon a Celent mobile banking survey conducted in 14 countries in Asia in the spring of 2014. Survey results showed that mobile banking initiatives are increasingly gaining traction in Asia, but that they have yet to reach the point where users are actively embracing them. Nevertheless, mobile banking is only increasing. This conclusion is further supported by the fact that many banks — 75% of responding banks — are considering increasing mobile banking IT spending.

“The strong interest in boosting IT spending in mobile banking points to further growth in this channel,” says KyongSun Kong, an analyst with Celent's Asian Financial Services Group and author of the report. “As banks deploy next-generation mobile banking systems and start to look at omnichannel, we can expect increased spending on IT solutions for digital banking.”

Celent’s survey asked banks about their mobile banking systems and future IT spending plans. Celent received responses from banks in Australia, New Zealand, China, Hong Kong, Taiwan, Japan, South Korea, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and India.  

A follow up report will examine broader trends and present salient case studies in mobile banking in Asia.

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

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

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Survey Overview

2

Mobile Banking System Deployment

5

 

Deployment Timing

5

 

Number of Registered Users

5

 

Transaction Data

6

Mobile Banking Service Content

7

 

Customer Segments

7

 

Opening New Accounts

8

 

Mobile Banking Service Features

8

 

Security

10

 

Marketing Methods

11

 

Operation Hours

12

IT Spending Trends

13

 

IT Spending

13

 

Vendor Partners

13

 

Future Spending Trends

14

 

IT Spending Drivers

14

Conclusion

16

 

Proposals for Banks

16

 

Proposals for Vendors

16

Leveraging Celent’s Expertise

17

 

Support for Financial Institutions

17

 

Support for Vendors

17

Related Celent Research

18

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