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An unsophisticated data network, low adoption of mobile-data services and clunky voice-oriented handsets led to mobile banking's failure between 2000 and 2002, concludes a report from Boston-based consulting firm Aite Group. Now, the firm says the possibilities for mobile banking are endless. "[The mobile phone] is the device that's going to be the hub of all banking and payments within the next few years," says Aite senior analyst Nick Holland. Over 80% of the U.S. population owns a mobile phone, according to research by the Washington, D.C.-based International Association for the Wireless Telecommunications Industry. That figure is expected to rise to 90% by 2011. Broadband-like cellular data networks like 3G have enabled mobile banking services to gain popularity in 2008, according to Aite's report. Relatively high adoption of mobile services and multimedia handsets also have contributed to mobile banking's success, Aite says. But consumers have not yet embraced mobile banking as a high-demand financial tool, the report states. According to an Aite survey of 500 credit and debit cardholders, 14% are current users of mobile banking services while 16% are likely or very likely to become users.
