Mobile-banking platform provider mFoundry recently celebrated 1 million end-users, a signal of the inroads mobile banking has made as a key customer-service channel for the nation's financial institutions, according to the firm's leader.
"The number of users began to grow in the last 12 to 18 months with increased adoption of the iPhone, Android and BlackBerry smart phones," said Drew Sievers, co-founder and CEO of mFoundry. "Thank God for the iPhone."
Ecom Advisors, a financial services-consulting firm, reported that 27 percent of smart phone owners use their phones for mobile banking compared with 22 percent in 2009.
These applications indicate consumers are increasingly comfortable using smart phones as a self-service device to conduct financial transactions.
Nearly 200 banks and credit unions employ mFoundry's mobile-banking platform. The Larkspur, Calif.-based company acquires new customers through direct sales and though the company's channel partners like NCR Corp. The Duluth, Ga.-based company, which is the world's largest ATM manufacturer based on annual shipments, recommends mFoundry to bank customers, Sievers said.
"Large banks and very tiny banks are adopting mFoundry's platform to appeal to younger customers who use their smart phones. Mobile banking also cuts the cost of banking operations," Sievers said.
Mobile-banking customers initially used their smart phones to send SMS text messages, transfer money between accounts, check account balances and to pay bills online. Sievers said, however, customers also are using their smart phones connected to a mobile-banking platform to find the nearest surcharge-free ATM.
Bank of America, an mFoundry investor, recently announced that it will pilot mobile payments with smart phones next month in New York City. Charlotte-based Bank of America has 5 million mobile-banking customers and if the pilot pans out, it is expected to enhance the financial institution's mobile banking offering.
This story ran originally on ATMMarketplace.com.
