Mobile Phone Reviews
 
 
Mobile phone banking is where its at

Wed, 14 Dec 2005

The mobile phone industry is looking to overhaul its systems to allow users to access their finances through their mobile phones. Many phones now have Java and i-mode services that give users better funtionality on their phones. Whereas the forerunner to these services was WAP which unfortunately was not very popular with users.

Research by Meridea, a mobile banking provider, has shown that there is demand for mobile banking with most interest coming from young users. The research found that one in four users would go as far as changing banks if they offered free banking services. This has led to some providers trying to turn this interest into reality.

Some banks, as early as next year, are looking to launch a service that will let people use their mobile phones like cash machines. But of course they won’t actually be dispensing money.

MobileATM is the compnay behind the scheme, which is a joint venture between LINK the cash machine operator and Morse the IT company. The service will be accessible to those who have a Java-enable mobile phone and the application will have to be downloaded. MobileATM said that customers will be able to log into their various different accounts similar to using a cash card in different ATM machines.

Through this service users will be able to check their balance, get mini statements, top up their phone credit and enhance online banking security by generating authentication codes.

The effect will be that a fraudster with someone’s bank details but not their mobile phone would not be log on as they would not have the authentication code which is generated by the phone.

Alastair Lukies, the company’s CEO said mobile phones are seen as a fifth channel to bank customers after branches, ATM’s, internet banking and phone banking.

He said, "We are launching in the first quarter of next year with two tier-one banks, two out of the big five. And two tier-two banks. This is the first example of true mobile banking."

First Direct and the Bank of Ireland have expressed an interest in the service and the company hopes that the majority of LINK members will be signed up by September.

Mobile phone operator O2 is already letting Egg customers access bank balances using their i-mode service, by using their current Egg login details.

A spokesman for Egg said, "A few years ago Egg started off with a WAP service which didn't really take off. WAP was fairly primitive - for example just looking at your balance. What consumers are willing to do now with mobile phones is significantly more than we would in the days of WAP."

The next phase will allow cash to be texted by customers to eachother. He added, "In the first wave it will be about balances but our aspiration - and we have the ability in place - is to move money between different accounts by mobile phone and send each other money by text message. You can see how the mobile phone could be a very interesting way of managing your money on the move."

As O2 are the only providers of the service at present, only a quarter of Egg customers can access it. However Egg feel this could change. A spokesman said "Our intention is not to limit ourselves to one provider - O2 were the first to launch this in the UK and it makes sense with them but that doesn't mean we will only have a service on O2."
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