The Mobile MandateBank of America on the Future - and Security - of Mobile Banking
BofA launched its mobile-banking platform in May 2007 and today has 5 million mobile WAP/browser-based and downloadable-banking-application subscribers. In May, BofA launched its SMS/text banking service - a service that is open to all BofA customers - and today has more than 500,000 users.
In an exclusive interview, Marc Warshawsky, BofA's senior vice president of mobile channel planning and design, shares his thoughts about the future of mobile-banking adoption. "We're looking at ways to target a variety of customers, drive more awareness and attract a larger segment."
BofA expects the use of mobile banking to grow exponentially over the next 12 months, as the world's adoption of smart phones increases. Much of this growth will lead to more use of downloadable banking apps, and that means banking institutions will be pushed to take more precautions to ensure security and consumer confidence in the emerging mobile channel.
In this interview, Warshawsky shares his thoughts on:
- The security of downloadable apps for mobile banking;
- Why BofA is opening its mobile platform to its entire U.S. customer base;
- Why all U.S. financial institutions must consider launching a mobile-banking offer.
The interview is the latest in a series of recent pieces dedicated to mobile banking - a hot topic for banking institutions of all sizes. From San Francisco-based Patelco Credit Union, an early mobile-banking adopter, to Mississippi-based Renasant Bank, which only recently got into the mobile game, institutions across the country are looking to mobile as the channel to trump all others.
New financial services are being launched and considered for the mobile channel, including the ability to remotely deposit checks, conduct basic payments, as well as use mobile technology as a second layer of user authentication.
For more on mobile, please see Mobile Banking Grows Slowly