There is high demand among treasurers for mobile corporate banking services, with approximately two-thirds of businesses at least "somewhat likely" to use mobile corporate banking services to perform basic transactions such as checking balances or transferring funds, finds a survey of over 300 treasury executives worldwide.
According to "The Business Case for Offering Corporate Mobile Banking Service" report released by Fundtech, a provider of global transaction banking solutions, and Aite Group, an independent financial research and advisory firm, over 40% of respondents described themselves as "likely" or "very likely" to do so. Even more importantly, over 55% of treasurers expressed interest in performing more advanced functions such as approving transactions and initiating payments via a mobile device.
Mobile banking technology has primarily been offered to the consumer/retail channel but survey results indicate that corporate mobile banking presents a new, untapped opportunity for banks. Interestingly, approximately 49% of businesses are willing to pay for the convenience of mobile cash management capabilities, pointing toward the ability for banks to generate fee-based revenues to cover some of the cost associated with this kind of technology investment.
"Although banks have been slow to extend mobile corporate banking to their business customers, the survey findings clearly indicate that there is growing demand for this kind of service. What was most surprising was the percentage of respondents who would pay for such a service. In an environment where banks need to identify innovative new ways in which to attract and retain clients, now may be the right time for banks to consider investing in mobile banking platforms for their corporate customers," says Christine Barry, research director at Aite Group and author of the report.
The largest opportunity for corporate mobile banking exists among middle-market customers (annual revenues up to US$10 billion). Another finding is that security is a concern for more than 65% of treasury executives.
Meanwhile, half of treasury executives surveyed view anytime, anywhere access to banking information as the primary benefit of corporate mobile banking.
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