Survey Shows High Demand for Corporate Mobile Banking Around the Globe
Aite Group and Fundtech release report indicating 65% of treasurers interested in adopting mobile services and over half willing to pay for them.
Fundtech Ltd., a market leader in global transaction banking solutions, and Aite Group, a leading independent financial research and advisory firm, today released The Business Case for Offering Corporate Mobile Banking Services, based on the findings of a global survey of treasury executives. The report can be downloaded at: www.fundtech.com/mobile
The report is based on an October 2010 survey of over 300 treasury executives worldwide. The survey revealed high demand amongst 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. 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.
Christine Barry, Research Director at Aite Group and author of the report, comments, 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.
Other survey findings included:
- The largest opportunity for corporate mobile banking exists among middle-market customers (annual revenues up to $10billion)
- Security is a concern for more than 65% of treasury executives
- Half of treasury executives surveyed view anytime, anywhere access to banking information as the primary benefit of corporate mobile banking
Fundtech is launching Mobile ACCESSplus, the first mobile platform designed specifically for corporate electronic banking. Mobile ACCESSplus is an extension to Fundtechs Services Platform, a rich SOA (Services Oriented Architecture) platform designed for transaction banking. Banks can now take advantage of Fundtechs groundbreaking new platform to extend corporate mobile banking services to their business customers.
The survey findings validate what we have been hearing from CFOs and treasurers for some time now and the reason why we are launching Mobile ACCESSplus, comments Rhys Jones, Head of Innovation at Fundtech. With executives constantly on the road or away from their desks, they need to be able to perform both basic and advanced functions on a mobile device to make sure workflow is uninterrupted and operating smoothly. Were excited to be first to market with the only corporate mobile banking platform in the industry and look forward to rolling out these innovative new services in partnership with our banking clients.
Fundtech (NASDAQ: FNDT), was founded in 1993, and is a leading provider of software and services to banks of all sizes around the world. Payments systems include wire transfers, ACH origination, cross-border payments and remittance. Cash management systems are designed for large corporate through small business clients. Fundtech operates the worlds largest SWIFT service bureau. We offer an extensive line of financial supply chain applications including electronic invoice presentment and supply chain financing. And we are the leading provider of CLS systems to the worlds largest banks. More than 1,000 clients throughout the world rely on Fundtech solutions to improve operational efficiency and provide greater competitiveness through innovative business-to-business services. For more information, visit www.fundtech.com.
Forward Looking Statements:
This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income or loss, capital expenditures, plans for growth and future operations, competition and regulation. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. When used in this Release, the words, "estimates," "expects," "anticipates," "believes," "plans," "intends," and variations of such words and similar expressions are intended to identify forward-looking statements that involve risks and uncertainties. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. The factors that could cause actual results to differ materially from those discussed or identified from time to time in Fundtech's public filings, including its Annual Report on Form 20-F for the year ended December 31, 2009, including general economic and market conditions, changes in regulations and taxes and changes in competition in pricing environment. Undue reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof. Fundtech undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this Release or to reflect the occurrence of unanticipated events.
(UK) Chanda Gathani - Metia Inc.
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(USA) Binna Kim, Cognito
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George Ravich Fundtech Ltd.