Mobile Banking Down Under

Banks rush to offer services via mobiles phones, writes Brad Howarth; "IT HAS taken the better part of a decade, but Australians are finally on the verge of getting access to a range of banking services delivered through their mobile phones. Australian banks whipped themselves into a frenzy at the turn of the century as mobile banking looked set to take the lead from internet banking as a more convenient service delivery platform. But a series of expensive failed experiments using handset-based web browsers and a technology called wireless application protocol (WAP) failed to catch on with consumers. But, as handsets have improved and mobile network speeds have increased, many banks believe that the time is now right to introduce services. The ANZ has already launched a free service, called M-Banking, which requires consumers to download a small Java-based application to their handset. It has launched a second, simpler service using SMS messaging that allows customers to check account balances and statements, and create automatic alerts. The M-Banking service also allows them to make payments. In April, Suncorp will launch a WAP-based service providing similar functions to ANZ's M-Banking. An SMS service from Suncorp will follow later this year. The National Australia Bank is working with Telstra to develop an SMS-based service, but access will be restricted to customers on the Telstra network. Westpac has launched an SMS-based service in New Zealand, but has not set a public timetable for its introduction in Australia. One company that will not be joining the party is the Commonwealth Bank, which closed a mobile banking service delivered on the Vodafone network in late 2005 due to a lack of customers. The bank found that customers preferred to use the internet or teller machines for activities such as checking balances. A spokesman said the bank would consider reintroducing a mobile service if customer demand warranted it. According to Matthew Talbot, vice-president of m-commerce at mobile-banking technology supplier Sybase 365, , the first attempts to develop mobile-banking services based on WAP were a disaster. "Consumers didn't know how to set it up, the networks didn't work effectively for it and consumer education just wasn't there," Mr Talbot says. "People knew they could use SMS, but when it got to WAP and Java, the consumer didn't know."
Mr Talbot says most consumers are now better aware of the capabilities of their handsets. The company's own research has indicated that as many as 25% of Australian mobile-phone users would adopt mobile banking. Australia is also one of the strongest users of internet banking services. "You are never going to get 100% of people using the mobile phone, but there is a segment that is still using the call centres that will migrate to mobile," Mr Talbot says. "Consumers are looking at it as a requirement for what they think their bank should offer." Mr Talbot says for services to work, it is important that the bank offers a range of options to catch the greatest number of consumers. Sybase has yet to sign a client in Australia, but is providing technology to Citigroup and Standard Chartered Bank internationally. The managing director of banking products at ANZ, John Harries, says the goal for his company is to provide more convenient banking. "We needed to be a leader with this application to offer customers the option and the alternative of accessing their banking in this manner," Mr Harries says. The bank is taking a cautious approach to the service's introduction, with minimal promotion so far. Even so, ANZ, recorded more than 1000 registrations in its first few weeks of operations, but Mr Harries says this is only a tiny fraction of its 1.4 million internet banking users. "I see it as much about another way to get people information in an easy and convenient manner as much as it is about banking. And time will tell what the take-up will be."
According to Terry Wasmund, head of payments at Suncorp, the WAP-based service that his bank will launch in April has been in development for 12 months and is based on extensive customer research. He believes the strongest take-up will be in time-poor" customer segments such as young families and small-business operators. Suncorp chose WAP as he believes using the mobile-phone browser is easier for consumers than having to download software. "Customers are more familiar with the technology and have become quite comfortable with its use," Mr Wasmund says. "There is an even greater need these days for more convenience. And the technology itself is a lot better." He says the rate at which these services will catch on is unknown.
"The mobile-banking platforms are an investment in the future, and you'll see a gradual take-up that will continue to build," Mr Wasmund says.