Mobile access to financial services remains stalled, and less than five per cent of the total western Europe population will use mobile phones for banking, investing, and insurance by the end of 2007.
According to analyst firm IDC, mobile banking growth will be slow over the first five years after launch, particularly compared to online banking.
The company forecast that the percentage of online banking users accessing online services with a mobile device will reach about 11 per cent in 2007, growing from one per cent in 2001.
"European mobile banking has experienced some difficult years due to low rates of adoption in almost all European countries," said Mirko Corbetta, research analyst with IDC's European Vertical Markets expertise centre.
"European players launched their initial offerings in 1999 and 2000, but the right application or suitable package that injects new growth into the market to reach sufficient critical mass for profitability has yet to emerge."
Major growth opportunities in western European mobile banking are not expected until 2006 and 2007, due to the slow adoption of more advanced devices.
Currently, the main objective of mobile banking is to be an additional channel with a marginal role in a broader multichannel strategy.
IDC's study, Western Europe Mobile Banking 2001-2007: Boom or Flop? blamed the present state of the wireless communication market, with rapid growth but little ability to support more complex services.
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