So, any comments on the drivers of the decisions to adopt the various technologies? I've heard negatives about them all:

* WAP is too slow
* SMS is has poor UX, security?
* Rich UX won't have wide adoption due to variety of handsets.

And, of course, the positives:

* WAP has high penetration
* SMS is fast, cheap and has high penetration
* Rich UX offers true value

So, what's a bank to do?

Banks implementing multiple solutions (messaging, mobile Web, downloadable apps) to provide the most robust offering for all of their customer segments is a good strategy, and is backed up by research. Javelin’s recent Mobile Banking report does a good job of pointing out the strengths (and vulnerabilities) of each solution type; since each solution type appeals to different consumer segments, it recommends that financial institutions offer all three solutions to attract the most consumers and accelerate consumer adoption.

Javelin also recommends that banks take advantage of the “two-way, dynamic, real-time nature of the mobile channel to maximize the uniqueness of customer service.” Two-way, actionable alerts – such as for low balances, check overdrafts, transaction approvals (e.g. for questionable account activities) – enable bank customers to immediately and completely resolve issues using their mobile phones, rather than calling the bank’s call center or IVR or waiting to go online. For the bank, it reduces 800 number and infrastructure system costs (not to mention increases call center efficiency and improves customer service), so it offers cost savings to the bank while allowing them to provide a much better customer experience.

Two-way alerts are only possible through SMS, but there are multi-modal platforms available that support all three solutions (messaging, mobile Web, and native client apps), and can do so with a single implementation.

Also, if done correctly, there is great potential for revenue-generating opportunities with mobile banking. An example would be utilizing the mobile channel to drive secure and easy-to-use P2P transactions; another example would be two-way marketing messages for customer acquisition/retention campaigns (e.g. “Mortgage rates are at all-time lows. Send a reply to get more information.”)

Brandon’s right – the next six months will bring substantial changes to the mobile banking/payments landscape. I think the banks that will enjoy the most success in the long run will be those that implement all three solutions (messaging, mobile Web, and native client apps) and take full advantage of the two-way capabilities of the mobile channel.

I urge you to take a look at Mobilearth. We are using both WAP and SMS with features that focus on both customer and employee. Since we come from banking backgrounds, the entire system is built by bankers for banks. We offer call center functionality, audit trails, reporting, text messaging, customer alerts and so much more. Using one URL, we automatically recognize the type of device accessing the site and present the appropriate view. This means different views for computer, PDA and mobile phones. No need for your customers to memorize numerous websites. With custom text messaging, you can even reach non-customers as well as your regular customers and our start page portal allows additional marketing in the mobile space. If you haven't already checked us out, I urge you to go to www.mobilearth.com. We are already live at Eisenhower Bank and are working with other financial institutions now.

Just a quick note to correct the information about Wells Fargo in the Mobile Banking Deployments table. Wells Fargo supports both our retail and our business clients with WAP (In-house) mobile solutions. In this case, business clients refers to our Wholesale Banking customers who are piloting the CEO Mobile(SM) service.