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The Post-Mobile Banking Era

2009 July 3

The Mobile banking era is SO over.

I don’t mean that mobile banking isn’t going to happen. Mobile banking is happening and is expanding. What I do mean is that we have already passed through a cycle that lasted around five years for online banking. I assert that we are now in the Post-Mobile Banking era.

Many mobile banking vendors have popped up sold their software, implemented (or claimed to), and exhausted their useful lives. Core vendors have snapped up the remains of these mobile vendors. In fact in some cases, the core vendors have entered into puppetmaster partnerships with ailing mobile banking companies that allow the core vendors to control the mobile product offerings without even having to make an investment. Mobile banking is rapidly consolidating. Soon there will be just a few offerings from the folks that offer your banking cores and/or online banking systems.

At the end of the day, like Dorothy in the Wizard of Oz, what we’re learning is what we already knew. Mobile banking is another banking channel. It’s a way to reach new customers, hang on to old customers and reduce costs in the process. Mobile banking is more than just picking a product from a vendor and turning it on. Mobile banking touches the entire bank and its relationship with its customers. Adding mobile affects operations throughout the bank. Banks must prepare for both benefits and challenges throughout their organization when they add a new channel.

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