October 06, 2011

This week, Javelin Strategy and Research released its 2011-2012 Mobile Banking Vendor Scorecard. The report, now in its third year, provides a detailed analysis and ranking of the mobile banking solutions of 15 major vendors and also identifies the top 10 industry trends.

Vendors were scored in seven areas: market, applications and operating systems; platforms and scalability; basic features; alerts and advanced functionality; back office; security; and reviews, partners and installations. For the second year in a row, Fiserv ranked the best out of the 15 companies. FIS followed closely behind, and Sybase came in third. These three vendors' platforms were also rated the most secure.

Among the top mobile banking trends identified in the report are vendor consolidation, "triple-play" access (SMS text, mobile browser and downloadable apps), and customer demand for remote deposit capture. The average amount of banks that are now live with mobile banking solutions from the vendors scored has increased dramatically since last year's report, from just a few to 173.

The report also reveals that 45 percent of consumers say that fear of security breaches is stopping them from using mobile banking. In addition, two out of three consumers say that transacting on a mobile phone is much less secure than on a computer or laptop. Mary Monahan, the author of the report and executive vice president and research director for mobile at Javelin, says that education will be key to changing consumer perception of mobile banking.

"Vendors say application banking is the most secure but customers think browsers are the most secure because they're used to banking that way," says Monahan. "We're going to have to educate consumers on the channel that's being provided. We're also going to have to offer multiple modes of mobile banking."

In addition, banks and vendors must treat it as its own channel, says Monahan. "It's not online banking. Bring out products that illustrate the value of the channel," she explains. "People don't see the value of mobile banking right away. They think online banking is good enough."

Monahan points to remote deposit capture, a service offered by 80 percent of the rated vendors, as an example of a function that shows the value of mobile. "That's a service that consumers really want," she says. "It really captures what mobile's all about, and it shows the value of mobile."

For more information about the report or purchase a copy, visit Javelin's website.