Corporate Mobile Banking Update: Adoption Conundrums and Security Realities

by Jacob Jegher, September 17, 2014
Global, North America

Abstract

The good news is that corporate mobile banking can be extremely safe. The bad news is that security fears, some of them unfounded, are preventing users from flocking to corporate mobile.

Do the benefits outweigh the risks? Should banks be investing in corporate mobile given these adoption challenges?

Mobile is a critical customer touchpoint and provides several key benefits, including on-the-go access, alerts and notifications, and cash flow improvements. An often overlooked benefit to corporate mobile banking is that it provides an additional layer of security; when executives receive mobile alerts, they have the ability to intercept potentially fraudulent transactions in near real time. However, even with the added security benefits, corporations are and should still be concerned about security; it’s obviously critical to make responsible technology and security decisions.

 “There is a chicken and egg situation here. It’s quite difficult for banks to prioritize mobile investments when corporate adoption simply isn’t there,” says Jacob Jegher, a research director with Celent’s Banking practice and author of the report. “All banks should be investing in digital infrastructure that encompasses online, mobile and tablet banking. Banks don’t need to deploy actual mobile solutions immediately, but should be poised to rapidly deliver when customers ask for it. Customer demand should dictate when banks invest their hard-earned IT budgets in corporate mobile apps and solutions.”

This report examines and analyzes the corporate mobile banking landscape, delving into the current state of mobile banking adoption and explaining some of the adoption hurdles. It then explores corporate mobile banking security misconceptions and truths. Finally, the report provides a set of mobile banking best practices for corporate users and explains why banks must invest in digital infrastructure to support online, smartphone, and tablet banking.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Points for Corporate Users

1

 

Key Points for Financial Institutions That Have Launched or Are Considering Corporate Mobile Solutions

2

Adoption Is Lagging

3

 

Mobile Is a Critical Touchpoint, But Corporations Are Hesitant

3

 

Should Poor Corporate Mobile Adoption Matter to Banks?

4

Is Mobile Banking a Real Security Threat?

6

Corporate Mobile Banking Security Realities

9

 

Corporate Mobile Banking Is Safe

9

 

Authentication Alternatives — The Mobile Opportunity

10

Mobile Banking Best Practices for Corporate Users

13

Banks Must Invest in Digital Banking Infrastructure

15

Leveraging Celent’s Expertise

17

 

Support for Financial Institutions

17

 

Support for Vendors

17

Related Celent Research

18

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