Banking Review

Commonwealth Bank to launch mobile banking

The Commonwealth Bank is preparing to launch mobile banking, joining ANZ, Bank of Queensland, NAB and Suncorp in embracing device-based banking for retail customers.

Revealed in an internal memo released to bank staff, the service (already available at http://mobile.netbank.com.au/) will be officially launched next week, offering mobile-friendly access to account balance and recent transaction data, as well as a GPS-enabled ATM and branch locator. It also includes a direct link to CommSec’s existing iPhone application.

Full transfer capability is expected by March next year.

The m-banking application has been built to work with most mobile devices, including the Apple iPhone.

Existing bank customers using the next generation version of NetBank and registered for SMS or token-based security will be able to access the service immediately. Others will have to register for NetBank and SMS security to gain access.

The deployment of the second generation of mobile banking has been slow in Australia, with many banks, including NAB, dipping a toe in the water with text based banking or alerts.

After becoming the first Australian bank to launch m-banking in February, ANZ recently enhanced its offering to work better with the Apple iPhone. The bank has heavily marketed the service and Brian Clark, ANZ general manager of technology for the Asia Pacific region, has said the iPhone’s popularity helped the bank boost uptake of mobile banking.

Alongside this demo of its enhanced mobile banking offering, ANZ includes a direct link to its switching service.

A 2007 survey by mobile messaging firm Sybase 365 found almost one-quarter of consumers surveyed said they would consider switching banks if they were offered mobile banking services.

With the launch of mobile banking by a bank with more than 1.5 million Internet banking users, ANZ’s first mover advantage comes to an end. Westpac remains conspicuously absent from the game, despite moves to optimise its Internet banking service to work with the iPhone’s Safari browser.

It’s likely the next first-mover advantage will go to the institution or start-up that builds useful money management applications for mobile devices.