The worldwide number of users of mobile banking and related services is forecasted to grow from 20 million users in 2008, at a compound annual growth rate (CAGR) of 89%, to reach 913 million users in 2014, according to a research report by Berg Insight.
Asia-Pacific is expected to become the most important regional market, accounting for 65% of the total user base, according to the report.
Mobile banking is also anticipated to play a key role in bringing financial services to people in the Middle East and Africa, the report says. The difference in Europe and North America is the technology will mainly serve as an extension of existing online banks, with mobile handsets becoming more widely used for Internet access, Berg Insight's report states.
By 2014, Berg Insight forecasts mobile banking will attract 110 million users in Europe and 80 million users in North America.
Says Marcus Persson, telecom analyst at Berg Insight: “Mobile handsets are in an excellent position to become the primary digital channel for providers of banking and related financial services on emerging markets. People who sign up for their first mobile subscription today will likely open their first bank accounts in the coming years, and thus join the modern financial system.”
Mobile operators can play a vital role in this development, Persson adds. They will have the opportunity to take an active part in the creation of some of tomorrow's most important financial institutions based in Asia and Africa.
Besides traditional retail banking, the report also identifies international money transfer as a potential revenue source for mobile industry players. Berg Insight forecasts that 5% to 20% of the international money transfers currently handled by various formal or informal agent networks will be done using a mobile handset by 2014, generating between $170 million and $680 million in service revenue.
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