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Mobile Banking Factors why consumers are resisitng the new technology - Essay Example
Few American customers are willing to use their mobile phone to pay bills, check their balance or trade stocks. This initial customer resistance to advanced banking technology may be traced to the fear of the unknown. However, despite customer resistance, many international and local banks and financial firms are reactivating their mobile banking offerings…
Hence, better technology will lead to quicker and more enjoyable mobile transactions. This report focuses on the customer response to mobile banking in California, US. Through one-on-one interviews with 100 young consumers (ages ranging from 15 to 25 years old) the nature of consumer resistance to mobile banking is explored and explained. This strategic report also offers a hopeful examination of the future prospects of mobile phone banking applications in California.
Mobile banking represents a daring and emerging innovation with currently relatively low usage rates among American consumers. However, this segment is expected to have a high usage rates in the future with the implementation of improved features by the service providers. The first applications of mobile banking were implemented in the mid-nineties which enabled bank customers to make payments and request account balances via mobile phone as an SMS service. However, compared to Internet banking in developed countries, mobile banking adoption rates in developed and developing countries have been rather low and slow.
When mobile phone banking was first launched in the US market in mid-2002, the US consumers had a lukewarm response to the new technology during that time. Only a few percentage of the customers were open to mobile phone banking. ...