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Wednesday, April 01, 2009

Mobile banking users hit 913m by 2014 – Berg Insight

Sweden-based Berg Insight, has released its latest study outcome with a predication that mobile banking users to grow upto 913 million in the next five years.

According to report, worldwide number of users of mobile banking and related services is forecasted to grow from 20 million users in 2008 alone at a compound annual growth rate (CAGR) of 89.0 per cent to reach 913 million users in 2014.

Asia-Pacific, the report said, is expected to become the most important regional market, accounting for 65 per cent of the total user base.

Mobile banking, Berg Insight report also noted, is anticipated to play a key role in bringing financial services to people in the Middle East and Africa.

While in Europe and North America, the report predicted that the technology will mainly serve as an extension of existing online banks as mobile handsets become more widely used for Internet access.

“By 2014, Berg Insight forecasts that mobile banking will attract 110 million users in Europe and 80 million users in North America,” part of the a press statement the firm’s chief executive, Johan Fagerberg, made available to ITRealms Online revealed.

Telecom Analyst, Berg Insight, Mr. Marcus Persson, pointed out that mobile handsets are in an excellent position to become the primary digital channel for providers of banking and related financial services on emerging markets.

“People who sign up for their first mobile subscription today will likely open their first bank account in the coming years and thus join the modern financial system.

Mobile operators can play a vital role in this development and will have the opportunity to take an active part in the creation of some of tomorrow’s most important financial institutions based in Asia and Africa,” he said. 

Equally, the report indicated that besides traditional retail banking, it also identified international money transfer as a potential revenue source for mobile industry players.

Further, Berg Insight forecasted that 5–20 per cent of the international money transfers currently handled by various formal or informal agent networks will be carried out using a mobile handset by 2014, thus generating about US$ 170–680 million in service revenues.

Berg Insight offers premier business intelligence to the telecom industry, producing concise reports that offer key facts and strategic insights about pivotal developments in our focus areas with a vision to be the most valuable source of intelligence for our customers. 

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